Automation of CBP Form I-418 for Vessels, 73618-73631 [2021-27571]

Download as PDF 73618 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations (D.C. Cir. 2015) (explaining that the good cause exception applied because ‘‘commentators could not have said anything during a notice and comment period that would have changed’’ the agency’s response to a judicial decision). The Departments notified the public in March that ‘‘if the injunction remains in effect on December 31, [2021,] the Departments may delay the effective date of the Security Bars rule further.’’ 86 FR at 15071.19 D. Unfunded Mandates Reform Act of 1995 This rule will not result in the expenditure by state, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year, and it will not significantly or uniquely affect small governments. Therefore, no actions are deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. B. Executive Order 12866 and Executive Order 13563 E. Congressional Review Act This rule is not a major rule as defined by section 804 of the Congressional Review Act (‘‘CRA’’). 5 U.S.C. 804. This rule will not result in an annual effect on the economy of $100 million or more; a major increase in costs or prices; or significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign based enterprises in domestic and export markets. The Departments have complied with the CRA’s reporting requirements and have sent this rule to Congress and to the Comptroller General as required by 5 U.S.C. 801(a)(1). Executive Orders 12866 (Regulatory Planning and Review) and 13563 (Improving Regulation and Regulatory Review) direct agencies to assess the costs, benefits, and transfers of available alternatives, and, if regulation is necessary, to select regulatory approaches that maximize net benefits, including potential economic, environmental, public health and safety effects, distributive impacts, and equity. Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. Pursuant to Executive Order 12866, the Office of Information and Regulatory Affairs of the Office of Management and Budget determined that this rule is ‘‘significant’’ under Executive Order 12866 and has reviewed this regulation. C. Regulatory Flexibility Act khammond on DSKJM1Z7X2PROD with RULES The Departments have reviewed this rule in accordance with the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., and have determined that this rule to further delay the effective date of the Security Bars rule (85 FR 84160) will not have a significant economic impact on a substantial number of small entities. Neither the Security Bars rule, nor this rule to delay its effective date, regulate ‘‘small entities’’ as that term is defined in 5 U.S.C. 601(6). Only individuals, rather than entities, are eligible to apply for asylum and related forms of relief, and only individuals are placed in immigration proceedings. 19 In response to the March Security Bars Delay IFR, the Departments received one comment objecting to a further delay. The commenter asserted that implementation was needed to mitigate the risk of the potential spread of deadly communicable diseases by noncitizens from countries where the disease was prevalent. As noted, however, agencies have been enjoined from applying bars to asylum eligibility and withholding of removal when making a credible fear determination. VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 F. Executive Order 13132 (Federalism) This rule will not have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with section 6 of Executive Order 13132, the Departments believe that this rule will not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement. G. Executive Order 12988 (Civil Justice Reform) This rule meets the applicable standards set forth in section 3(a) and 3(b)(2) of Executive Order 12988. H. Paperwork Reduction Act This rule does not create new, or revisions to existing, ‘‘collection[s] of information’’ as that term is defined under the Paperwork Reduction Act of 1995, Public Law 104–13, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR part 1320. I. Executive Order 13175 (Consultation and Coordination With Indian Tribal Governments) This rule does not have ‘‘tribal implications’’ because it does not have substantial direct effects on one or more Indian tribes, on the relationship PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. Accordingly, Executive Order 13175 (Consultation and Coordination with Indian Tribal Governments) requires no further agency action or analysis. Alejandro N. Mayorkas, Secretary, U.S. Department of Homeland Security. Dated: December 18, 2021. Merrick B. Garland, Attorney General, Department of Justice. [FR Doc. 2021–28016 Filed 12–27–21; 8:45 am] BILLING CODE 4410–30–P; 9111–97–P DEPARTMENT OF HOMELAND SECURITY 8 CFR Parts 251 and 258 U.S. Customs and Border Protection 19 CFR Part 4 [Docket No. USCBP–2021–0046; CBP Dec. No. 21–19] RIN 1651–AB18 Automation of CBP Form I–418 for Vessels U.S. Customs and Border Protection, DHS. ACTION: Interim final rule; solicitation of comments. AGENCY: This rule amends the regulations in title 8 and title 19 of the Code of Federal Regulations (CFR) regarding the submission of U.S. Customs and Border Protection (CBP) Form I–418, Passenger List—Crew List (Form I–418) in paper form. Currently, the master or agent of every commercial vessel arriving in the United States, with limited exceptions, must submit Form I–418, along with certain information regarding longshore work, in paper form to CBP at the port where immigration inspection is performed. Most commercial vessel operators are also required to submit a paper Form I– 418 to CBP at the final U.S. port prior to departing for a foreign place. DHS is modifying the applicable regulations to provide for the electronic submission of Form I–418. Under this rule, vessel operators will be required to electronically submit the data elements on Form I–418 to CBP through an electronic data interchange system (EDI) approved by CBP in lieu of submitting a paper form. This will streamline vessel arrival and departure processes by providing for the electronic submission of the information collected SUMMARY: E:\FR\FM\28DER1.SGM 28DER1 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations on the Form I–418, eliminating redundant data submissions, simplifying vessel inspections, and automating recordkeeping. DATES: Effective date: This rule is effective February 28, 2022. Comments due date: Comments must be received on or before February 28, 2022. ADDRESSES: You may submit comments, identified by docket number, by the following method: • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments via docket number USCBP–2021–0046. Due to COVID–19-related restrictions, CBP has temporarily suspended its ability to receive public comments by mail. Instructions: All submissions received must include the agency name and docket number for this rulemaking. All comments received will be posted without change to http:// www.regulations.gov, including any personal information provided. For detailed instructions on submitting comments and additional information on the rulemaking process, see the ‘‘Public Participation’’ heading of the SUPPLEMENTARY INFORMATION section of this document. Docket: For access to the docket to read background documents or comments received, go to http:// www.regulations.gov. Due to relevant COVID–19-related restrictions, CBP has temporarily suspended on-site public inspection of submitted comments. FOR FURTHER INFORMATION CONTACT: For title 8 of the Code of Federal Regulations inquiries, contact Stephen Dearborn, Enforcement Programs Division, Admissibility and Passenger Programs, Office of Field Operations, Stephen.M.Dearborn@cbp.dhs.gov or (202) 344–1707; for title 19 of the Code of Federal Regulations inquiries, contact Brian Sale, Manifest and Security Division, Cargo and Conveyance Security, Office of Field Operations, Brian.A.Sale@cbp.dhs.gov or (202) 325– 3338. SUPPLEMENTARY INFORMATION: khammond on DSKJM1Z7X2PROD with RULES Table of Contents I. Public Participation II. Background A. Overview B. Current Commercial Vessel Arrival and Departure Processing C. Form I–418 Automation Test Program D. Form I–418 Automation Regulations E. Discussion of Regulatory Changes 1. 8 CFR part 251 2. 8 CFR part 258 3. 19 CFR part 4 VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 III. Statutory and Regulatory Requirements A. Administrative Procedure Act B. Executive Order 13563 (Improving Regulation and Regulatory Review) and Executive Order 12866 (Regulatory Planning and Review) C. Regulatory Flexibility Act D. Unfunded Mandates Reform Act of 1995 E. Executive Order 13132 F. Executive Order 12988 Civil Justice Reform G. Paperwork Reduction Act H. Privacy Interests List of Subjects Amendments to the Regulations I. Public Participation Interested persons are invited to participate in this rulemaking by submitting written data, views, or arguments on all aspects of this interim final rule. The Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) invite comments that relate to the economic, environmental, or federalism effects that might result from this interim final rule. Comments that will provide the most assistance to CBP will reference a specific portion of the interim final rule, explain the reason for any recommended change, and include data, information, or authority that support such recommended change. II. Background A. Overview As discussed in detail below, current regulations require commercial vessels and their operators 1 to meet several data submission requirements when arriving in the United States from a foreign place or outlying possession of the United States and when departing the United States for a foreign place or outlying possession of the United States. Both CBP and the U.S. Coast Guard (USCG) collect information in these contexts, and many of the data elements that the two agencies collect overlap. Some of this data must be submitted electronically, while some of it must be submitted on paper, such as the Form I– 418, Passenger List—Crew List. See section 251.5 of title 8 of the Code of Federal Regulations (8 CFR 251.5). Through this rule, CBP is streamlining the vessel arrival and departure processes by eliminating redundant data submissions, providing for the electronic submission of the information collected on the Form I–418, simplifying vessel inspections, and automating recordkeeping for the Form I–418. 1 For the purposes of this document, vessel ‘‘operators’’ include masters or commanding officers, or authorized agents, owners, or consignees. PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 73619 The USCG requires commercial vessel operators to submit a Notice of Arrival (NOA) to the National Vessel Movement Center (NVMC) 2 through its electronic Notice of Arrival/Departure (eNOA/D) system or via email in advance of U.S. arrival.3 See 33 CFR 160.201–216. In addition to other data elements, each NOA must include information on the crew and passengers on board the vessel. See 33 CFR 160.206(a). Upon satisfactory submission, USCG processes the information via the eNOA/D web portal and then the system automatically transmits it to CBP as an Advance Passenger Information System (APIS) manifest. An APIS manifest is a CBP pre-arrival requirement. See 8 CFR 231.1(a) and 19 CFR 4.7b. In addition to the APIS manifest data, which must be submitted electronically to CBP prior to arrival, DHS regulations require the master or agent of every vessel arriving in the United States from a foreign place or outlying possession of the United States, with the exception of certain vessels in the Great Lakes, to present a manifest of all crewmen onboard, on a Form I–418, to CBP at the port of entry where immigration inspection is performed.4 5 See 8 CFR 251.1(a)(1). Manifest information collected on the Form I–418 includes details about the passengers and crewmen on board the vessel and whether any of the crewmen will be performing longshore work at any U.S. port before the vessel departs from the United States. See 8 CFR 251.1. If longshore work is to be performed, Form I–418 requires the vessel operator to note which exception of the Immigration and Nationality Act permits the work. See 8 CFR 251.1(a)(2)(ii) and 258.2. If manifest information changes after the initial submission, the vessel operator must update the APIS manifest electronically through the eNOA/D system. See 19 CFR 4.7b(b)(2)(ii). Additionally, a CBP officer at the coastwise port generally updates the vessel’s original paper Form I–418 to reflect any changes. 2 The NVMC was established by USCG in 2001 to operate as a single clearinghouse for the submission and processing of notice of arrival and departure information for vessels entering and departing U.S. ports and facilities. 3 When a vessel operator is in an area without internet access or experiences technical difficulties, and he or she has no shore-side support available, the vessel operator may fax or phone the submission to the NVMC. See 33 CFR 160.210(a). 4 For more information on the exemptions for certain Great Lakes vessels, see 8 CFR 251.1(a)(3). 5 Due to the high volume of crew and passengers on cruise ships, cruise ship operators generally submit the two signature pages of the Form I–418 on paper along with a compact disc containing their passenger and crew manifest details. E:\FR\FM\28DER1.SGM 28DER1 73620 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations khammond on DSKJM1Z7X2PROD with RULES Upon departure from the United States, USCG collects updated manifest information from commercial vessel operators via a Notice of Departure (NOD) submitted to the NVMC through eNOA/D or another electronic format. See 33 CFR 160.201–216. Also at the time of departure, CBP requires vessel operators to update their original paper Form I–418 submission to include a list of departing crew, crew changes, and trip departure details.6 See 8 CFR 251.3. A CBP officer at the port of departure typically verifies any changes to the Form I–418 information and sends the updated form to the vessel’s first port of arrival for final data reconciliation and recordkeeping purposes. Despite similarities in the vessel arrival and departure data submitted in accordance with the Form I–418, APIS, and USCG requirements, data transmitted electronically, such as through eNOA/D, does not satisfy the current Form I–418 regulatory requirements, which state that Form I– 418 must be submitted in paper format. See 8 CFR 251.5. As described in depth below, these overlapping submission requirements create a substantial burden on vessel operators, and the maintenance, verification, and storage of the paper Form I–418 is a significant burden on CBP officers and the agency as a whole. To reduce redundant data submissions and to ease burdens on vessel operators and the agency itself, CBP is modifying its regulations to allow for the electronic submission of Form I–418 only. The updated regulations require vessel operators to submit the data elements required on Form I–418 electronically via an electronic data interchange system (EDI) approved by CBP. Presently, the CBPapproved EDI is eNOA/D. Data submitted via eNOA/D will be automatically transmitted to CBP, which will use the information to populate an electronic version of the Form I–418.7 The information currently collected through eNOA/D will satisfy the required data elements for populating the electronic version of the Form I–418 for CBP’s purposes. The act of electronically submitting the data elements required on Form I–418 constitutes the Master’s certification that CBP baggage declaration requirements have been made known to 6 Certain Great Lakes vessels are also exempt from this requirement. See 8 CFR 251.3(b). 7 The embark date required on Form I–418 is transmitted to CBP via eNOA/D. The disembark date/date separated (i.e., the date when a crewmember permanently departs the vessel) is calculated by CBP. This rule does not change this practice. VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 incoming passengers; that any required CBP baggage declarations have been or will simultaneously be filed as required by law and regulation with the proper CBP officer; that the responsibilities of the vessel operator have been or will be done as required by law or regulation before the proper CBP officer; and that there are no steerage passengers on board the vessel. As explained further below, CBP will no longer collect the vessel operator’s signature for the Master’s certification during inspection. The electronically submitted information will then be reviewed and confirmed by the inspecting CBP officer. This rule will streamline vessel arrival and departure processes by eliminating redundant data submissions, simplifying vessel inspections, and automating recordkeeping. Any changes regarding the CBP-approved EDI will be announced in a notice published in the Federal Register. B. Current Commercial Vessel Arrival and Departure Process Commercial vessels arriving at and departing from U.S. ports of entry must comply with statutory and regulatory requirements to engage in U.S. trade.8 Commercial vessels, regardless of whether they are cargo, non-cargo,9 or cruise ships, traveling to a U.S. port of entry from a foreign port or place must begin their trip by submitting certain manifest information electronically to USCG and CBP prior to arrival. Once at a U.S. port of entry, commercial vessels must submit additional information and undergo customs and immigration inspections and processing. These arrival requirements vary by commercial vessel type and slightly differ by port of entry. 1. Cargo and Non-Cargo Vessels In general, upon a cargo or non-cargo vessel’s arrival, CBP officers at the port of entry travel to the vessel’s docking station and board it. Next, CBP requests and reviews the vessel’s entry and manifest documentation, along with passenger and crew passports and visas. For manifest verification, the vessel’s operator or agent typically submits two copies of the vessel’s passenger and crew manifest using Form I–418 to the CBP officers aboard the vessel. CBP uses the paper Form I–418 for crew and 8 The regulatory requirements concerning how and when a vessel operator must submit an I–418 are contained in parts 251 and 258 of title 8 of the Code of Federal Regulations, and in part 4 of title 19 of the Code of Federal Regulations. 9 For the purposes of this document, non-cargo commercial vessels include all commercial vessels other than cargo ships and cruise ships. Tugboats fall under this classification. PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 passenger admissibility inspections and processing. During the admissibility inspection process, a CBP officer verifies the actual crew and passengers on hand and those departing the vessel using a copy of the paper Form I–418, the previously submitted APIS manifest, pre-arrival screening results, and passports and visas. Barring any unresolvable issues, the CBP officer annotates the inspection results, including any discrepancies, on the paper Form I–418 submissions. The CBP officer collects the vessel operator’s signature on the form and signs and stamps the documents. The CBP officer then provides one copy of the signed, stamped, and annotated Form I–418 to the vessel operator to use during coastwise travel and upon departure from the United States. The CBP officer at the first port of arrival retains the other copy of the original signed, stamped, and annotated Form I–418 for subsequent data reconciliation and recordkeeping purposes. After the admissibility inspections and processing are complete, the CBP officers disembark the vessel, travel back to their port office, manually record the results of their inspections and related actions into CBP data systems, and send applicable Form I– 418 supporting documentation, to the next port of arrival. Once granted entry, the vessel may engage in further coastwise travel within the territorial waters of the United States or depart the United States. If manifest information changes after initial submission, the vessel operator must update the APIS manifest electronically through the eNOA/D system. The vessel operator must also present the initial signed, stamped, and annotated Form I–418 copy to a CBP officer when requested at a coastwise port of arrival.10 The CBP officers at these subsequent ports of arrival update the Form I–418 to reflect any manifest changes, verify new supporting documentation if applicable, take admissibility actions as necessary, and provide the updated Form I–418 to the vessel operator for further U.S. travel and ultimate departure. The CBP officers at each coastwise port send a copy of the updated Form I–418 to the vessel’s first port of arrival for data reconciliation and recordkeeping purposes. Upon departure from the United States, USCG requires commercial vessel operators to submit a NOD to 10 Per sections 235 and 252 of the Immigration and Nationality Act, CBP may board and inspect vessels at subsequent coastwise ports of arrival. See 8 U.S.C. 1225(d); See also 8 U.S.C. 1282. E:\FR\FM\28DER1.SGM 28DER1 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations NVMC through eNOA/D or another electronic format. CBP requires these vessel operators to update their APIS manifest electronically through the eNOA/D system; update their paper Form I–418 to include a list of departing crew, crew changes, and trip departure details; and submit the paper Form I– 418 to CBP. A CBP officer at the port of departure verifies any additional modifications to the form information and sends the completed Form I–418 and supporting documentation to the vessel’s first port of arrival. There, a CBP officer manually reconciles the original Form I–418 retained during the initial arrival inspection with the subsequently updated versions of the form and related documentation. CBP officers spend considerable time vetting pre-arrival data, traveling to/ from a vessel, boarding/disembarking the ship, and conducting admissibility inspections and processing. In addition, CBP officers typically spend 120 minutes (2 hours) performing postinspection processing for each vessel’s paper Form I–418 submission from arrival to departure.11 This includes the time CBP spends manually recording form information and actions into CBP systems, communicating between ports of arrival and departure, manually validating and reconciling data, gathering and sending supporting documentation, physically storing and shipping the manifest package, and tracking the manifest package. 2. Cruise Ships khammond on DSKJM1Z7X2PROD with RULES Cruise ships follow slightly different procedures from cargo and non-cargo vessels upon arriving at a U.S. port of entry. At their first port of arrival, cruise ship crewmembers and passengers generally offload the ship at a designated terminal, where CBP officers are stationed and readily available to conduct customs and immigration inspections and processing. Under the standard arrival process, the cruise ship operator generally provides two copies of Form I–418’s complete passenger and crew manifest with all printed pages.12 Cruise ship operators arriving at some POEs submit just two copies of the two signature pages of the paper Form I–418 and a compact disc of the manifest in 11 Source: Correspondence with CBP’s Office of Field Operations on November 6, 2020. 12 An unknown number of cargo and non-cargo vessel operators and cruise ship operators arriving/ departing at some POEs may provide additional copies of the Form I–418 to CBP during each standard arrival/departure. Source: Email correspondence with CBP’s Office of Field Operations on November 18, 2020. VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 lieu of submitting numerous pages of paper to CBP. During the standard admissibility inspection process, a CBP officer validates and verifies the cruise ship’s actual crew and passengers on hand and those departing the vessel generally using the Form I–418, the previously submitted APIS manifest, pre-arrival screening results, and passports and visas. Any inspection results and admission/landing rights from such processing are directly recorded into CBP data systems. During cruise ship crew and passenger processing, the CBP officer also collects the vessel operator’s signature on the form copies, signs and stamps the documents. The CBP officer then provides one copy of the signed and stamped Form I–418 or signature pages for the vessel operator to retain and use in coastwise travel and upon departure from the United States. The CBP officer at the first port of arrival retains the other copy of the signed, stamped, and annotated Form I–418 or signature pages for subsequent data reconciliation and recordkeeping purposes. Once granted entry, the cruise ship may engage in further coastwise travel or depart the United States. If manifest information changes during coastwise movement, the vessel operator must update the APIS manifest electronically through the eNOA/D system. The vessel operator must also present the initial signed, stamped, and annotated Form I– 418 signature pages to a CBP officer at each coastwise port of arrival upon request. The CBP officers at these subsequent ports of arrival review the Form I–418 or signature pages and update CBP data systems to reflect any manifest changes, verify new, applicable supporting documentation, take admissibility actions as necessary, and provide the Form I–418 or signature pages to the vessel operator for further U.S. travel. As discussed above, upon departure from the United States, USCG requires commercial vessel operators to submit a NOD to the NVMC through eNOA/D or another electronic format. CBP requires these vessel operators to update their APIS manifest electronically through an approved system (currently, the eNOA/ D system) and submit the two signature pages of the signed and stamped Form I–418 to CBP. See 8 CFR 251.3. A CBP officer at the port of departure verifies any additional modifications to the form information and sends the completed Form I–418 signature page and supporting documentation to the vessel’s first port of arrival. There, a CBP officer manually reconciles the original Form I–418 signature page, PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 73621 supporting documentation, and manifest compact disc with the subsequently updated versions of the form and related documentation. In addition to time spent vetting prearrival data and conducting admissibility inspections and processing, CBP officers spend an average of 20 minutes (0.333 hours) performing post-inspection processing for each cruise ship’s Form I–418 submission from arrival to departure.13 This includes the time CBP spends manually validating and reconciling data, gathering supporting documentation, communicating between ports of arrival and departure (when necessary), physically storing and shipping the manifest package, and tracking the manifest package (when necessary). 3. Additional Form I–418 Requirements for Vessels Under Title 19 CFR Part 4 of title 19 of the CFR provides additional requirements as to when and how a vessel operator must submit Form I–418. Under 19 CFR 4.7(a), the master of every vessel arriving in the United States and required to make entry must have on board a manifest that includes Form I–418. In some instances, a vessel operator may submit a Form I–418 in lieu of the Crew’s Effects Declaration, CBP Form 1304, with supporting documentation. See 19 CFR 4.7(a), 4.7a(b)(2), and 4.81(d). However, when given the option, most vessel operators submit CBP Form 1304 instead of Form I–418 with additional supporting documentation, such as individual CBP Forms 5129, Crew Member’s Declaration. C. Form I–418 Automation Test Program Recognizing the need to reduce redundant data collection and implement a seamless process to receive and use vessel arrival and departure information under various regulations, CBP developed a voluntary Form I–418 automation test program. The program tested CBP’s ability to gather and reconcile information submitted for eNOA/D, APIS, and other electronic purposes for use in generating an automated, electronic Form I–418. CBP implemented this test in two phases as described below. The test varied somewhat across participating ports. Although the automated test program is still in operation at many ports of entry, the test program will be replaced by the regulatory program addressed in this rule. 13 Source: Email correspondence with CBP’s Office of Field Operations on June 2, 2020. E:\FR\FM\28DER1.SGM 28DER1 khammond on DSKJM1Z7X2PROD with RULES 73622 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations CBP launched the first phase of the voluntary automation test program at four ports of entry in January 2011. The first phase allowed CBP officers and ports to evaluate the submission of Form I–418 data in both electronic and paper format to verify the similarity of information captured and identify any anomalies in the methods used. Moreover, it allowed CBP officers to rely solely on electronic manifest data submissions to build a vessel’s departure manifest, thus eliminating the need for vessel operators to submit the departure manifest in paper format. By June 2011, CBP implemented the second and final phase of the voluntary test program, which fully transitioned the submission of Form I–418 data to an automated, paperless process for certain commercial vessel operators. In place of submitting the required I–418 information on the paper Form I–418, vessel operators participating in the I– 418 Automation test program could transmit this data through eNOA/D and APIS data submissions. Under the automation test, CBP systems automatically compiled eNOA/D, APIS, and any other electronic manifest data submitted electronically by test participants prior to arrival and at departure into a pre-populated electronic Form I–418. Upon a participating cargo or non-cargo vessel’s arrival, CBP largely pre-vetted the electronic Form I–418 and printed out a paper copy of the form for customs and immigration inspection and processing purposes. As with current arrival requirements for cargo and non-cargo commercial vessels, a CBP officer then boarded the vessel, conducted inspections, annotated the admissibility inspection results on the paper Form I–418, collected the vessel operator’s signature on the form, and signed and stamped the document. Before disembarking the vessel, the CBP officer had the vessel operator make a copy of the signed, stamped, and annotated paper Form I–418 for further coastwise travel and departure. The CBP officer then returned to the port office to manually record the inspection results and related actions annotated on the original Form I–418 into CBP data systems. For cruise ships participating in the I– 418 Automation test program, CBP generally pre-vetted the electronic Form I–418, printed out a paper copy of the Form I–418’s two signature pages, and conducted passenger and crew processing like the standard process at a terminal. Instead of requiring the submission of a full paper Form I–418 or manifest CDs, CBP officers largely conducted arrival inspections and VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 processing electronically at the terminal. CBP officers also used the two paper Form I–418 signature pages to collect the vessel operator’s signature and to sign and stamp the pages to generally meet existing paper Form I–418 retention requirements. Before departing for their next port of call, test participants could transmit any manifest changes subsequent to the initial inspection at the port of arrival via the eNOA/D system. These changes included, but were not limited to, the sign-on or sign-off of crewmembers. As under the standard commercial vessel arrival/departure process, a CBP officer at the next port of call verified that the information submitted met the vessel’s regulatory requirements. Upon departure from the United States, a CBP officer at the port of departure performed an electronic reconciliation of the vessel’s arrival, coastwise, and departure manifest data and addressed any discrepancies. Then, the officer sent all paper documentation, typically via fax, to the first port of arrival. In 2015, CBP migrated to mobile devices that allowed CBP officers to electronically conduct Form I–418 processing for cargo and non-cargo vessel arrivals (including I–418 Automation test program participants and non-participants) at different ports of entry, thereby removing the need to print off a paper Form I–418. With these devices, CBP officers directly recorded the inspection results and related actions into CBP data systems at the time of inspection and processing. In 2016, CBP successfully deployed its preexisting electronic signature (hereafter, ‘‘e-signature’’) capability through its mobile devices at five major sea ports of entry. This tool allowed for the electronic collection of vessel operator and CBP officer signatures on the Form I–418, which removed the need to print off a copy of the Form I–418 and have the vessel operator sign it. Despite these streamlined electronic processing methods, CBP continued to also record vessel inspection results and signatures on the paper form and physically stamp the form to meet the regulatory requirements in place regarding the submission and retention of paper Form I–418. Most U.S. ports of entry along with approximately 15 percent of cargo and non-cargo vessels and 56 percent of cruise ships are fully or partially participating in the above-described voluntary automation test program, including electronic submissions and e-signature capabilities.14 14 Based PO 00000 on fiscal year (FY) 2019 data. Frm 00008 Fmt 4700 Sfmt 4700 D. Form I–418 Automation Regulatory Program CBP is amending its regulations to require the electronic submission of the data elements required on Form I–418 in lieu of its current paper form. This will streamline vessel arrival and departure processes by eliminating redundant data submissions, simplifying vessel inspections, and automating recordkeeping. The updated regulations will require vessel operators to electronically submit the data elements required on the Form I–418 via an EDI approved by CBP. CBP will continue to use the eNOA/D system as the approved EDI. Under this process, CBP systems will compile eNOA/D, APIS, and any other electronic manifest data submitted by vessel operators to the NVMC prior to arrival and at departure into an automated CBP system. CBP will use its system for all commercial vessel crew and passenger admissibility inspections and processing, and thus generally establish a fully paperless passenger and crew list process for all commercial vessel arrivals and departures. Any changes to the CBP-approved EDI will be announced in a notice published in the Federal Register. With this automated system, for each commercial vessel arrival from a foreign port or place, CBP will be able to prevet the vessel’s electronic passenger and crew list, travel to/from and board/ disembark the vessel (for cargo and noncargo vessels only), conduct inspections, and record the admissibility inspection results and related actions in real time using a mobile device or computer station (for the majority of cruise ships).15 During arrivals/departures processed with mobile devices, CBP officers will directly record the inspection results and related actions into CBP data systems at the time of inspection and processing, eliminating the need for CBP officers to manually input the inspection results and related actions into CBP data systems later at the port office. CBP will also use the mobile devices to verify the electronically submitted data during the inspection process. The inspecting CBP officer will no longer collect the vessel operator’s signature for the Master’s certification, as now the act of submitting the data electronically will constitute certification. Once the passenger and crew list is verified electronically by the inspecting CBP officer, CBP will 15 CBP processes the majority of cruise ship arrivals at terminals using computer stations; however, CBP now processes some cruise ship arrivals using mobile devices. E:\FR\FM\28DER1.SGM 28DER1 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations generate and transmit a read-only copy of the electronic Form I–418, only upon request, with an electronic CBP receipt number, by email to the vessel operator for use during coastwise movement or upon departure from the United States. The verified electronic passenger and crew list will also be converted to a writeable file and stored in CBP data systems. As in the automation test program, before departing for their next port of call, vessel operators will be able to transmit any manifest changes subsequent to the vessel’s inspection at the first port of arrival via the NVMC. A CBP officer at the next port of arrival will verify these changes and record all updates, inspection results, and related actions in real time in the CBP system using a mobile device or computer station. The CBP officer will then save the updated electronic passenger and crew list in CBP data systems, and email a read-only copy to the vessel operator, if requested. Upon departure from the United States, a CBP officer at the port of departure will verify the vessel’s arrival, coastwise, and departure manifest data, which CBP data systems will reconcile automatically, and address any discrepancies. Thereafter, the CBP officer will save the completed electronic passenger and crew lists in CBP data systems, where it will be stored electronically for at least five years. In the limited instances where a paper Form I–418 is submitted, CBP will continue its current process of collecting, verifying, and physically storing all paper Form I–418 supporting documentation. khammond on DSKJM1Z7X2PROD with RULES E. Discussion of Regulatory Changes DHS is amending parts 251 and 258 of title 8 of the CFR, as well as part 4 of title 19 of the CFR, as set forth below, to automate Form I–418 and, in some provisions, eliminate the option to submit the Form I–418 in lieu of other required forms in order to reflect current trade practices and improve efficiency in data submission. The amendments also update the regulations to incorporate ‘‘plain language’’ consistent with Executive Order 13563, ‘‘Improving Regulation and Regulatory Review’’ (76 FR 3821). 1. 8 CFR Part 251 Section 251.1 addresses ‘‘Arrival manifests and lists’’ in the immigration context. Section 251.1(a) sets out the requirements for arrival manifests and lists for vessels. Specifically, this section requires the master or agent of every vessel to submit a paper Form I–418 to CBP at the port where immigration inspection is performed VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 and that the master or agent provide certain information regarding longshore work. This section is being amended to reflect the new procedure through which the information requested on Form I–418 and about longshore work is submitted electronically through an EDI approved by CBP. Conforming amendments are being made throughout this section to accommodate the new submission process. For instance, where the regulations state that the master or agent must ‘‘note on’’ the manifest certain information about longshore work, the regulations are being amended to state that this information must now be ‘‘indicate[d] in’’ the manifest, because such additional information and annotations will generally no longer be collected on a hard copy, but will be done through an electronic interface. Section 251.1(a) is also being amended to include two exceptions to the new general rule that I–418 and longshore work data be submitted electronically. The first exception is where the master or agent of the vessel is unable to electronically submit the data elements required on Form I–418 via an electronic data interchange system approved by CBP due to technical issues, such as when the onboard computer system is malfunctioning, or there is no internet access, and there is no shore-side support available. The second is where CBP is experiencing technical difficulties affecting its receipt or processing of electronically submitted information, or where CBP, in its discretion, determines that a paper Form I–418 is acceptable under the circumstances presented by the master or agent of a vessel. The latter includes, but is not limited to, where there is a medical or weather emergency, or, in the case of longshore work, when information and relevant data cannot be submitted through the eNOA/D system due to its format. Lastly, additional minor amendments are being made to section 251.1 to incorporate ‘‘plain language’’ including replacing the word ‘‘shall’’ with either ‘‘must’’ or ‘‘will’’, as appropriate. Section 251.3 addresses ‘‘Departure manifests and lists for vessels’’ in the immigration context. Specifically, this section requires the master or agent of every vessel to submit a paper Form I–418 to CBP at the port from which the vessel is to depart directly to some foreign place or outlying possession of the United States. This section is being amended to reflect the new procedure through which the information requested on the Form I–418 is submitted electronically through an EDI approved by CBP. PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 73623 Section 251.3 is also being amended to include two exceptions to the new general rule that I–418 data be submitted electronically. The first is where the master or agent of the vessel is unable to electronically submit the data elements required on Form I–418 via an electronic data interchange system approved by CBP due to technical issues, such as when an onboard computer system is malfunctioning. The second exception allows for a paper Form I–418 to be submitted when CBP is experiencing technical issues or where CBP, in its discretion, determines that a paper Form I–418 is acceptable under the circumstances presented by the master or agent of a vessel. Section 251.5 requires the master or commanding officer, or authorized agent, owner, or consignee, of a commercial vessel or commercial aircraft arriving in or departing from the United States to submit arrival and departure manifests in a paper format in accordance with §§ 251.1, 251.3, and 251.4. This section is being amended to remove references to paper, as this information will now be submitted electronically in the vessel context. 2. 8 CFR Part 258 Section 258.2 requires masters and agents who use nonimmigrant crewmen to perform longshore work under one of the exceptions listed in the section, to indicate on the crew manifest that an exception is being used and to note which exception will be performed. Among other things, it sets forth the documentation that must be presented. This section is being amended to reflect the new procedure through which the information requested on the Form I– 418 is submitted electronically through an EDI approved by CBP. This rule does not make changes to any of the other documentation requirements in section 258.2. Additional minor amendments are being made to section 258.2, such as replacing the term ‘‘shall’’ with ‘‘must.’’ The term ‘‘Immigration and Naturalization Service’’ is also being updated and replaced with ‘‘CBP.’’ 3. 19 CFR Part 4 Section 4.7 concerns ‘‘Inward foreign manifest; production on demand; contents and form; advance filing of cargo declaration.’’ Pursuant to section 4.7(a), a paper Form I–418 is a required document for the manifest. This section is being amended to reflect the new electronic submission of the data elements required on Form I–418. Section 4.7(a) is being amended to require vessel operators to submit the data elements required on Form I–418 E:\FR\FM\28DER1.SGM 28DER1 khammond on DSKJM1Z7X2PROD with RULES 73624 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations via the EDI approved by CBP, and to provide that the electronic submission will be considered part of the manifest required under this section. Section 4.7a addresses ‘‘Inward manifest; information required; alternative forms.’’ Pursuant to Section 4.7a(b)(2), the master of a vessel may, in lieu of describing the articles on CBP Form 1304, furnish a CBP Form I–418. However, submitting CBP Form I–418 with the required CBP Form 5129 instead of CBP Form 1304 generally takes more time for the trade community to complete and takes more time for CBP to review and process the forms, as well as providing redundant information contained in other required forms. Therefore, to reflect current trade practices and improve data submission efficiency, this section is being amended to remove the option of filing a paper Form I–418 instead of CBP Form 1304. Conforming edits are also being made to section 4.7(a), for the same reason. Sections 4.7a(d) and (e) are being amended to incorporate the information submission requirements contained in section 4.7b concerning the APIS data. Section 4.7a(e) is being amended to remove the certification requirements. Currently, the regulation requires a paper form certification to be attached to Form I–418. In light of the automation of CBP Form I–418, it will be impractical to require a paper form certification. Under this rule, vessel operators will be required to submit the data elements required on CBP Form I–418 via an electronic data interchange system approved by CBP. The regulation specifies that the act of electronically submitting the data will serve as the Master’s certification, as described further in this preamble’s discussion of the amendments to section 4.50. Section 4.50 concerns the passenger lists that the master of every vessel arriving at a U.S. port from a foreign port or place must submit. Specifically, section 4.50(a) requires the master of the vessel to submit Form I–418 if the vessel is arriving from a noncontiguous foreign territory and is carrying steerage passengers. Section 4.50(a) is being amended to reflect the new procedure for submitting the data elements of Form I–418 through an EDI approved by CBP, including reference to the required information required under section 4.7b(b)(3) for such passengers. Section 4.50 is also being amended to include a new paragraph (c) that will replace the paper form certification requirement in section 4.7a(e). New subsection 4.50(c), provides that by the act of submitting the data elements required on CBP Form I–418 via an electronic data interchange system approved by CBP, the vessel VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 operator certifies that CBP baggage declaration requirements have been made known to incoming passengers; that any required CBP baggage declarations have been or will simultaneously be filed as required by law and regulation with the proper CBP officer; that the responsibilities of the vessel operator have been or will be done as required by law or regulation before the proper CBP officer; and that there are no steerage passengers on board the vessel. Section 4.81 addresses ‘‘Reports of arrivals and departures in coastwise trade.’’ Section 4.81(d) provides the master of the vessel with an option of either submitting the traveling Crew’s Effects Declaration, Customs Form 1304, or Form I–418 with attached Customs Form 5129, with the port director upon arrival at each port in the United States. Like the amendment to remove the option to submit Form I–418 in section 4.7a, this section is being amended to remove the option of filing a Form I–418 instead of CBP Form 1304 to reflect current trade practices and improve data submission and efficiency. Section 4.91 concerns the diversion of a vessel and the transshipment of cargo. Section 4.91(c) requires that when inward foreign cargo or passengers are transshipped to another vessel under customs supervision, a separate traveling manifest must be used for the transshipped cargo or passengers. Section 4.91(c) provides the master of the vessel with the option of submitting either a Cargo Declaration, CBP Form 1302, or Form I–418. This section is being amended to reflect the new procedure for submitting the data elements of Form I–418 through an EDI approved by CBP. III. Statutory and Regulatory Requirements A. Administrative Procedure Act The Administrative Procedure Act (APA) generally requires agencies to publish a notice of proposed rulemaking in the Federal Register (5 U.S.C. 553(b)) and provide interested persons the opportunity to submit comments (5 U.S.C. 553(c)). However, the APA provides an exception to this prior notice and comment requirement for ‘‘rules of agency organization, procedure, or practice’’ 5 U.S.C. 553(b)(A). This interim final rule is a procedural rule promulgated for efficiency purposes that falls within this exception. This rule is procedural because it merely automates an existing reporting requirement for vessel masters or agents pursuant to existing statutes and PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 regulations. See 8 U.S.C. 1103, 1182, 1221, 1281, 1282; 8 CFR part 2; 19 U.S.C. 66, 1431, 1433, 1434, 1624, 2071 note; and 19 CFR part 4. The rule changes the format in which vessel masters or agents must present required information to CBP. Under the amended regulations, vessel masters or agents will no longer be required to complete and submit the paper Form I–418. Instead, all required information must be submitted to CBP electronically through the electronic data interchange system approved by CBP, which has been the practice for most vessel masters and agents by submitting the information through eNOA/D. This rule neither affects the substantive criteria by which CBP officers inspect vessels upon arrival or departure nor the nature of the information required by CBP. Although this procedural rule is exempt from prior notice and comments procedures, DHS is providing the public with the opportunity to comment without delaying implementation of this rule. DHS will respond to the comments received when it issues a final rule. B. Executive Order 13563 (Improving Regulation and Regulatory Review) and Executive Order 12866 (Regulatory Planning and Review) Executive Orders 13563 (Improving Regulation and Regulatory Review) and 12866 (Regulatory Planning and Review) direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Office of Management and Budget (OMB) has designated this rule a ‘‘significant regulatory action,’’ although not economically significant, under section 3(f) of Executive Order 12866. Accordingly, the rule has been reviewed by OMB. CBP has also prepared a regulatory impact assessment to help inform stakeholders of the impacts of this rule, which CBP has summarized below. The complete standalone analysis can be found in the public docket for this rulemaking at http:// www.regulations.gov. The standalone analysis also focuses on the costs and benefits experienced during the I–418 Automation test program period (FY 2011 through FY 2020). E:\FR\FM\28DER1.SGM 28DER1 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations 1. Executive Summary Through the Automation of CBP Form I–418 for Vessels Interim Final Rule, CBP will amend its regulations under 8 CFR part 251, 8 CFR part 258, and 19 CFR part 4 to require the electronic submission of the data elements required from vessel operators on Form I–418 in lieu of paper form submissions. CBP will no longer require the paper Form I–418. The updated regulations will require vessel operators to electronically submit the data elements required on the Form I–418 via an EDI approved by CBP. CBP will continue to use USCG’s eNOA/D system as the approved EDI. Under this process, CBP systems will compile eNOA/D and other electronic manifest data submitted by vessel operators prior to arrival and at departure into a passenger and crew list format reflective of an electronic Form I–418.16 The act of electronically submitting the data elements required on Form I–418 will also constitute the (vessel) Master’s certification that the manifest information is accurate,17 and eliminate the current need to generally collect Form I–418’s vessel master (or operator) and CBP officer signatures for certification.18 CBP will also retain its authority to require paper Form I–418 submissions in the event of certain technical difficulties, such as system outages and disruptions, that make it impossible to submit or receive manifest data electronically, and according to CBP discretion.19 This rule will streamline vessel arrival and departure processes by eliminating redundant data submissions, simplifying vessel inspections, and automating recordkeeping. CBP is currently operating an I–418 Automation test program, which serves as the basis for the regulatory program. The impact of the I–418 Automation regulatory program will slightly differ from the I–418 Automation test program due to its complete paper Form I–418 automation, eased administrative burdens, and elimination of signatures and paper processing. With its transition to a fully automated, electronic passenger and crew list (i.e., Form I–418) process, the I–418 Automation regulatory program will discontinue the test program. Under the regulatory program, CBP systems will automatically reconcile eNOA/D and other manifest data submitted electronically by vessel operators prior to arrival and at departure into a passenger and crew list format reflective of an electronic Form I–418. This transition will affect commercial vessel operators and CBP. Vessel operators will generally not incur any costs from this rule, though CBP will. CBP will sustain technology and printing costs from the regulatory program, including costs to maintain mobile devices for real-time, electronic processing and print paper Form I–418s until the admissibility inspection process is completely paperless. Across the period of analysis, these monetized costs will equal $45,000 in present 73625 value and $12,000 on an annualized basis. These costs represent the total costs of the rule. Following this rule’s implementation, vessel operators will enjoy $16.1 million in monetized present value cost savings from automated Form I–418 submissions and forgone printing and dual processing between FY 2021 and FY 2025 (using a 7 percent discount rate). During the same period, CBP will experience a total monetized present value cost saving of $37.2 million from the rule’s forgone printing requirements, streamlined mobile processing and postinspection tasks, and forgone storage and shipping costs (using a 7 percent discount rate). CBP may dedicate these cost savings to other agency mission areas, such as improving border security or facilitating trade. In total, the monetized cost savings of this rule will equal $53.3 million in present value and $13.9 million on an annualized basis over the period of analysis (using a 7 percent discount rate). The Executive Summary Table outlines the estimated costs and benefits (cost savings) of the I–418 Automation regulatory program from FY 2021 to FY 2025. As illustrated, the benefits (cost savings) of this rule outweigh its costs, with the total monetized net benefit (net cost saving) of the regulatory program measuring $53.3 million in present value and $13.9 million on an annualized basis (using a 7 percent discount rate). EXECUTIVE SUMMARY TABLE: NET BENEFIT (COST SAVING) OF I–418 AUTOMATION REGULATORY PROGRAM, FY 2021– FY 2025 [2019 U.S. Dollars] Present values 3% Discount rate Annualized values 7% Discount rate 3% Discount rate 7% Discount rate Total Cost ........................................................................................................ Total Benefit ..................................................................................................... $52,067 62,546,086 $45,458 53,306,084 $11,710 14,066,940 $11,863 13,910,918 Total Net Benefit ....................................................................................... 62,494,018 53,260,626 14,055,230 13,899,055 khammond on DSKJM1Z7X2PROD with RULES Notes: The estimates in this table are contingent upon CBP’s vessel arrival/departure projections as well as the discount rates applied. Estimates may not sum to total due to rounding. 16 The embark date required on Form I–418 is transmitted to CBP via eNOA/D. The disembark date/date separated (i.e., the date when a crewmember permanently departs the vessel) is calculated by CBP systems. This rule does not change this practice. 17 This includes certifying that certification that CBP baggage declaration requirements have been made known to incoming passengers; that any required CBP baggage declarations have been or will simultaneously be filed as required by law and regulation with the proper CBP officer; that the responsibilities of the vessel operator have been or VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 will be done as required by law or regulation before the proper CBP officer; and that there are no steerage passengers on board the vessel. 18 CBP officer signatures are generally dictated on the form as a unique receipt number tied to the officer. For the purposes of this analysis, CBP refers to these receipt numbers as signatures. 19 The Automation of CBP Form I–418 for Vessels Interim Final Rule describes particular exceptions to the electronic submission requirement. In particular, CBP will also retain its authority to require paper submissions in the event the master or agent of the vessel is unable to electronically PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 submit the data elements required on Form I–418 via an electronic data interchange system approved by CBP due to technical issues, such as when the onboard computer system is malfunctioning or there is no internet access, and there is no shoreside support available; CBP is experiencing technical difficulties affecting its receipt or processing of electronically submitted information; or where CBP, in its discretion, determines that a paper Form I–418 is acceptable under the circumstances presented by the master or agent of a vessel. E:\FR\FM\28DER1.SGM 28DER1 73626 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations khammond on DSKJM1Z7X2PROD with RULES 2. Purpose of Rule Commercial vessels arriving at and departing from U.S. ports of entry (POEs) must comply with statutory and regulatory requirements to engage in U.S. trade. As previously mentioned, under current regulations commercial vessels, regardless of whether they are cargo, non-cargo,20 or cruise ships, traveling to U.S. POEs from a foreign port or place must begin their trip by submitting similar manifest information electronically to USCG through eNOA/ D and APIS, and then submitting the same manifest data to CBP on the paper Form I–418. At departure, commercial vessels must submit similar departure data to USCG and CBP. Despite similarities in the vessel arrival and departure data submitted per Form I– 418, APIS, and eNOA/D requirements, current regulations do not allow data to be transmitted electronically, such as through eNOA/D or email, to satisfy Form I–418’s passenger and crew list submission requirement. In fact, failure to submit the arrival or departure manifest in paper format may result in fines and penalties. To reduce redundant data submissions and automate manifest recordkeeping, CBP launched the I–418 Automation test program in 2011. This test has allowed for the automated, electronic submission of the data elements on Form I–418 from test participants using manifest data previously submitted electronically to the NVMC through eNOA/D, APIS, or other means. Based on the successful operation of the test, CBP now intends to establish the automated, electronic Form I–418 data submission process by regulation. Through this rulemaking, CBP will amend its regulations under 8 CFR part 251, 8 CFR part 258, and 19 CFR part 4 to require the electronic submission of the data elements required from vessel operators on Form I–418 in lieu of paper form submissions. CBP will generally no longer require the paper Form I–418. The updated regulations will require vessel operators to electronically submit the data elements required on the Form I–418 via an EDI approved by CBP. CBP will continue to use the eNOA/D system as the approved EDI. Under this process, CBP systems will compile eNOA/D, APIS, and any other electronic manifest data submitted by vessel operators prior to arrival and at departure into a passenger and crew list format reflective 20 For the purposes of this analysis, non-cargo commercial vessels include all commercial vessels other than cargo ships and cruise ships. Tugboats fall under this classification. VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 of an electronic Form I–418.21 The act of electronically submitting the data elements required on Form I–418 will also constitute the (vessel) Master’s certification that the manifest information is accurate,22 and eliminate the current need to generally collect Form I–418’s vessel master (or operator) and CBP officer signatures for certification.23 CBP will also retain its authority to require paper Form I–418 submissions in the event of certain technical difficulties, such as system outages and disruptions, that make it impossible to submit or receive manifest data electronically, and according to CBP discretion.24 This rule will streamline vessel arrival and departure processes by eliminating redundant data submissions, simplifying vessel inspections, and automating recordkeeping. 3. Population Affected by Rule This rule will affect commercial vessel operators and CBP, though at different magnitudes according to the arriving vessel type and I–418 Automation test program participation during the period of analysis spanning from FY 2021 to FY 2025. To determine the extent of the population affected by this rule, CBP relies on historical commercial vessel arrivals/departures and test participation data. From FY 2015 to FY 2019, cargo and non-cargo vessel arrivals/departures of I–418 Automation test program participants grew at a compound annual 21 The embark date required on Form I–418 is transmitted to CBP via eNOA/D. The disembark date/date separated (i.e., the date when a crewmember permanently departs the vessel) is calculated by CBP systems. This rule does not change this practice. 22 This includes certifying that certification that CBP baggage declaration requirements have been made known to incoming passengers; that any required CBP baggage declarations have been or will simultaneously be filed as required by law and regulation with the proper CBP officer; that the responsibilities of the vessel operator have been or will be done as required by law or regulation before the proper CBP officer; and that there are no steerage passengers on board the vessel. 23 CBP officer signatures are generally dictated on the form as a unique receipt number tied to the officer. For the purposes of this analysis, CBP refers to these receipt numbers as signatures. 24 As described above, CBP will retain its authority to require paper submissions in the event the master or agent of the vessel is unable to electronically submit the data elements required on Form I–418 via an electronic data interchange system approved by CBP due to technical issues, such as when the onboard computer system is malfunctioning or there is no internet access, and there is no shore-side support available; CBP is experiencing technical difficulties affecting its receipt or processing of electronically submitted information; or where CBP, in its discretion, determines that a paper Form I–418 is acceptable under the circumstances presented by the master or agent of a vessel. PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 rate of 6.0 percent while non-participant cargo and non-cargo vessel arrivals/ departures declined at a compound annual rate of 1.9 percent. During the same period, participant and nonparticipant cruise ship arrivals/ departures both grew at a compound annual rate of 2.4 percent (see Table 1). In the future, CBP projects that commercial vessel arrivals/departures will remain consistent with their more conservative historical trends prior to the COVID–19 pandemic beginning in 2020. Accordingly, CBP estimates that future cargo and non-cargo vessel arrivals/departures of I–418 Automation test program participants will increase increasing at a rate of 6.0 percent per year, non-participant cargo and noncargo vessel arrivals/departures will decrease at a rate of 1.9 percent per year, and all cruise ship arrivals/departures will increase at a rate of 2.4 percent per year from their FY 2019 values between FY 2021 and FY 2025.25 CBP believes that these projections best represent the normal, recent growth of commercial vessel arrivals/departures while still accounting for the projected economic and travel slowdowns due to the COVID–19 pandemic. CBP did not use FY 2020 data as a basis for future growth because it exhibits extreme, abnormal drops in vessel arrivals/ departures due to the COVID–19 pandemic beginning during that year. 25 Based on historical commercial vessel data and future commercial vessel demand outlooks. For future cargo and non-cargo vessel outlook information, see: Pallis, Athanasios A, et al. Transport and Trade Facilitation: COVID–19 and Maritime Transport Impact and Responses, United Nations Conference on Trade and Development (UNCTAD), Series No. 15, March 2021. Available at https://unctad.org/system/files/official-document/ dtltlb2021d1_en.pdf. Accessed July 23, 2021; World Bank Group. Global Economic Prospects. Chpt. 1. World Bank Group Publishing. June 2021. Available at https://openknowledge.worldbank.org/bitstream/ handle/10986/35647/9781464816659-ch01.pdf. Accessed July 23, 2020; ‘‘Moody’s: Outlook for US public ports revised to stable on strengthening economic activity, improving cargo volumes.’’ Moody’s Investors Service, December 7, 2020. Available at http://www.moodys.com/research documentcontentpage.aspx?docid=PBC_1247050. Accessed July 23, 2021; Ohse, Friedemann. ‘‘Will 2021 bring about recovery for the global maritime industry?’’ OceanInsights, September 30, 2020. Available at https://www.ocean-insights.com/ business-news/will-2021-bring-about-recovery-forthe-global-maritime-industry/?cli_ action=1602257398.7141/8. Accessed October 9, 2020. For future cruise ship outlook information, see: Giese, Monique. ‘‘COVID–19 Impacts on Cruise Industry.’’ KPMG, July 23, 2020. Available at https://home.kpmg/xx/en/blogs/home/posts/2020/ 07/covid-19-impacts-on-global-cruiseindustry.html. Accessed October 23, 2020; McMahon, Shannon. ‘‘5 takeaways from the cruise industry’s report on a return to sailing.’’ Washington Post, September 21, 2020. Available at https://www.washingtonpost.com/travel/2020/09/ 21/cruise-return-report-covid-19/. Accessed October 23, 2020. E:\FR\FM\28DER1.SGM 28DER1 73627 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations process. In contrast, the test program will transition into a regulatory program in which all commercial vessel operators participate in an automated Form I–418 data submission process upon this rule’s implementation. As previously stated, CBP does not believe that this rule will directly affect the future volume of commercial vessel arrivals/departures, and thus predicts that future commercial vessel arrivals/ departures will be the same with and without this rule’s implementation (i.e., the baseline). As Table 1 shows, CBP estimates that almost 424,000 commercial vessel arrivals/departures will occur between FY 2021 and FY 2025, including 372,000 cargo and noncargo vessel arrivals/departures and 53,000 cruise ship arrivals/departures. Nearly 98,000 (23 percent) of these arrivals/departures will correspond to former (or ongoing in the absence of this rule) I–418 Automation test program participants, while the remaining 326,000 (77 percent) will correspond to non-former I–418 Automation test program participants (or non-test participants in the absence of this rule). Nearly all of these vessel operators will be affected by the rule. Of the arrivals/ departures of former (or ongoing) I–418 However, CBP recognizes the uncertainty in this assumption and that the rate of economic recovery from the COVID–19 pandemic will depend on many factors, including how quickly businesses can recover, rates of infection, and global supply chains. CBP does not believe that this rule will directly affect the volume of future commercial vessel arrivals/departures, and thus predicts that the projected arrivals/departures will be the same with and without this rule’s implementation (i.e., the baseline). To estimate future commercial vessel arrivals/departures with and without this rule, CBP first applies the projected growth rates for cargo and non-cargo vessel arrivals/departures of I–418 Automation test program participants and non-participants (6.0 percent and 1.9 percent, respectively) and cruise ship arrivals/departures (2.4 percent) to their respective FY 2019 values (see Table 1). CBP then projects the estimates forward through the period of analysis, FY 2021 to FY 2025. When making such projections, CBP presumes that the I–418 Automation test program will continue to exist during the period of analysis in the absence of any rulemaking to automate the Form I–418 Automation test program participants, CBP estimates that 50 percent will correspond to participants who fully participated in the test program and the remainder will correspond to participants who only partially participated (see Table 1). According to field interviews, the majority of vessel operators participating in the I–418 Automation test program continued to provide a paper Form I–418 upon arrival/departure despite having submitted an electronic Form I–418 to ensure full compliance with CBP regulations.26 For the purposes of this analysis, CBP refers to these vessel operators as those who partially participated in the I–418 Automation test program. Under the baseline, nonI–418 Automation test program participants and 50 percent of test program participants will continue to submit paper Form I–418s with each projected arrival/departure, while the remaining test participants will submit only automated versions of Form I–418 with each future arrival/departure. Alternatively, with the rule, each arrival/departure will presumably result in an automated Form I–418 submission. TABLE 1—PROJECTED COMMERCIAL VESSEL ARRIVALS AND DEPARTURES FY 2019* FY 2021 Number of Cargo & noncargo vessels Cruise ships Growth in Vessel Arrivals/Departures ......................... Vessel Arrivals/Departures ......................................... Form I–418 Submissions ............................................ ............ 64,155 64,155 ............ 4,319 4,319 Cargo & noncargo vessels FY 2022 Cargo & noncargo vessels Cruise ships FY 2023 Cargo & noncargo vessels Cruise ships FY 2024 Cruise ships Cargo & noncargo vessels 2.4% 4,638 4,638 ¥1.9% 59,416 59,416 FY 2025 Cruise ships Cargo & noncargo vessels Cruise ships 2.4% 4,749 4,749 ¥1.9% 58,287 58,287 2.4% 4,863 4,863 Total, FY 2021– FY 2025 Cargo & noncargo vessels Cruise ships .............. 302,946 302,946 ............ 23,202 23,202 Non-I–418 Automation Test Program Participants I I I ¥1.9% 62,936 62,936 I 2.4% 4,423 4,423 I ¥1.9% 61,740 61,740 I 2.4% 4,529 4,529 I ¥1.9% 60,567 60,567 I I I I I I I I–418 Automation Test Program Participants Growth in Vessel Arrivals/Departures ......................... Total Vessel Arrivals/Departures ................................ Vessel Arrivals/Departures of Participants Fully Participating in Test ......................................... Vessel Arrivals/Departures of Participants Partially Participating in Test ................................. Total Form I–418 Submissions + ................................ Form I–418 Submissions from Participants Fully Participating in Test ......................................... Form I–418 Submissions from Participants Partially Participating in Test ................................. ............ 11,487 ............ 5,496 6.0% 12,176 2.4% 5,628 6.0% 12,907 2.4% 5,763 6.0% 13,681 2.4% 5,901 6.0% 14,502 2.4% 6,043 6.0% 15,372 2.4% 6,188 .............. 68,638 ............ 29,523 5,744 2,748 6,088 2,814 6,454 2,882 6,841 2,951 7,251 5,743 11,487 2,748 5,496 6,088 12,176 2,814 5,628 6,453 12,907 2,881 5,763 6,840 13,681 2,950 5,901 7,251 14,502 3,022 7,686 3,094 34,320 14,763 3,021 6,043 7,686 15,372 3,094 6,188 34,318 68,638 14,760 29,523 5,744 2,748 6,088 2,814 6,454 2,882 6,841 2,951 7,251 5,743 2,748 6,088 2,814 6,453 2,881 6,840 2,950 7,251 3,022 7,686 3,094 34,320 14,763 3,021 7,686 3,094 34,318 14,760 10,292 10,292 74,248 74,248 10,539 10,539 73,918 73,918 10,792 10,792 73,659 73,659 11,051 11,051 371,584 371,584 52,725 52,725 Total Vessel Arrivals/Departures ......................................... Form I–418 Submissions ............................................ 75,642 75,642 9,815 9,815 75,112 75,112 10,051 10,051 74,647 74,647 * Not in period of analysis. + Form I–418s submitted in both electronic and paper format only counted as one form submission. Note: Estimates may not sum to total due to rounding. khammond on DSKJM1Z7X2PROD with RULES 4. Costs of Rule This rule will automate the Form I– 418 process for all commercial vessel operators and eliminate the regulatory 26 Although the I–418 Automation test program waived the regulatory requirement to submit Form I–418s by paper, certain test participants insisted on VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 guidelines in place regarding the submission and retention of paper Form I–418s. These changes will generally not introduce new costs to commercial vessel operators, but they will introduce some costs to CBP. If vessel operators request a copy of their stamped and annotated electronic Form I–418, which they receive by paper now for CBP processing, they will incur negligible submitting paper Form I–418s to ensure full compliance with CBP regulations. Source: Email correspondence with CBP’s Office of Field Operations on February 23, 2016. PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\28DER1.SGM 28DER1 73628 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations costs to do so.27 CBP will sustain technology and printing costs from the Form I–418 Automation regulatory program, including costs to maintain mobile devices for real-time, electronic processing, and to print the paper Form I–418 until the admissibility inspection process is completely paperless. Across the period of analysis, these monetized costs will equal $46,000 in present value and $12,000 on an annualized basis (using a 7 percent discount rate). These costs represent the total costs of the rule, as illustrated in Table 2. TABLE 2—TOTAL PRESENT VALUE AND ANNUALIZED COSTS OF I–418 AUTOMATION REGULATORY PROGRAM, FY 2020– FY 2024 [2019 U.S. Dollars] 3% Discount rate Present Value Cost .................................................................................................................................. Annualized Cost ....................................................................................................................................... 7% Discount rate $52,067 11,710 $45,458 11,863 Note: The estimates in this table are contingent upon CBP’s vessel arrival/departure projections as well as the discount rates applied. 5. Benefits (Cost Savings) of Rule Besides its costs to CBP, this rule will provide considerable benefits (cost savings) to vessel operators and CBP. Following this rule’s implementation, vessel operators will enjoy $16.1 million in monetized present value cost savings from forgone paper Form I–418 submissions and form printing between FY 2021 and FY 2025 (using a 7 percent discount rate). During the same period, CBP will experience a total monetized present value cost saving of $37.2 million from the rule’s avoided printing, streamlined mobile post-inspection processing and electronic recordkeeping (using a 7 percent discount rate). CBP may dedicate these cost savings to other agency mission areas, such as improving border security or facilitating trade. In total, the monetized cost savings of this rule will equal $53.3 million in present value and $13.9 million on an annualized basis over the period of analysis (using a 7 percent discount rate; see Table 3). TABLE 3—TOTAL PRESENT VALUE AND ANNUALIZED BENEFITS (COST SAVINGS) OF I–418 AUTOMATION REGULATORY PROGRAM FY 2020–FY 2024 [2019 U.S. Dollars] 3% Discount rate Present Value Benefit .............................................................................................................................. Annualized Benefit ................................................................................................................................... 7% Discount rate $62,546,086 14,066,940 $53,306,084 13,910,918 Note: The estimates in this table are contingent upon CBP’s vessel arrival/departure projections as well as the discount rates applied. 6. Net Impact of Rule Table 4 summarizes the monetized costs and benefits (cost savings) of the I–418 Automation regulatory program to vessel operators and CBP from FY 2021 to FY 2025. As illustrated, the savings from this rule outweigh its costs, with the total monetized net cost saving of the regulatory program measuring $53.3 million in present value and $13.9 million on an annualized basis (using a 7 percent discount rate). TABLE 4—NET BENEFIT (COST SAVING) OF I–418 AUTOMATION REGULATORY PROGRAM, FY 2020–FY 2024 [2019 U.S. Dollars] Present values 3% Discount rate Annualized values 7% Discount rate 3% Discount rate 7% Discount rate Total Cost ........................................................................................................ Total Benefit ..................................................................................................... $52,067 62,546,086 $45,458 53,306,084 $11,710 14,066,940 $11,863 13,910,918 Total Net Benefit ....................................................................................... 62,494,018 53,260,626 14,055,230 13,899,055 Notes: The estimates in this table are contingent upon CBP’s vessel arrival/departure projections as well as the discount rates applied. Estimates may not sum to total due to rounding. khammond on DSKJM1Z7X2PROD with RULES C. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended by the Small Business Regulatory Enforcement and Fairness Act of 1996, requires an agency to prepare and make available to the public a regulatory flexibility analysis that describes the effect of a proposed rule on small entities (i.e., small businesses, small organizations, and small governmental jurisdictions) when the agency is required to publish a general notice of proposed rulemaking for a rule. Since a general notice of proposed rulemaking is not necessary for this rule, CBP is not required to prepare a regulatory flexibility analysis for this rule. 27 Source: Correspondence with CBP’s Office of Field Operations on November 24, 2020. VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 E:\FR\FM\28DER1.SGM 28DER1 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations D. Unfunded Mandates Reform Act of 1995 This rule will not result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. E. Executive Order 13132 This rule will not have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with section 6 of Executive Order 13132, DHS has determined that this final rule does not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement. khammond on DSKJM1Z7X2PROD with RULES F. Executive Order 12988 Civil Justice Reform This rule meets the applicable standards set forth in sections 3(a) and 3(b)(2) of Executive Order 12988. Executive Order 12988 requires agencies to conduct reviews on civil justice and litigation impact issues before proposing legislation or issuing proposed regulations. The order requires agencies to exert reasonable efforts to ensure that the regulation identifies clearly preemptive effects, effects on existing federal laws or regulations, identifies any retroactive effects of the regulation, and other matters. DHS has determined that this regulation meets the requirements of Executive Order 12988 because it does not involve retroactive effects, preemptive effects, or the other matters addressed in the Executive Order. G. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), an agency may not conduct, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number assigned by OMB. The Form I–418 information collected under 8 CFR part 251.1 and 8 CFR part 251.3 is included under OMB control number 1651–0103. Under the Automation of CBP Form I–418 for Vessels rule, CBP systems will automatically reconcile eNOA/D, APIS, and any other manifest data submitted electronically by vessel operators prior to arrival and at departure to create an VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 electronic version of Form I–418. CBP will use the automated, electronic Form I–418 for all commercial vessel crew and passenger admissibility inspections and processing, and thus generally establish a completely paperless Form I–418 process for all commercial vessel arrivals and departures. CBP plans to retain the paper Form I–418 and conduct paper Form I–418 processing only when the master or agent of the vessel is unable to electronically submit the data elements required on Form I– 418 via an electronic data interchange system approved by CBP due to technical issues, such as when the onboard computer system is malfunctioning or there is no internet access, and there is no shore-side support available; CBP is experiencing technical difficulties affecting its receipt or processing of electronically submitted information; or where CBP, in its discretion, determines that a paper Form I–418 is acceptable under the circumstances presented by the master or agent of a vessel. CBP will conduct such processing to not hinder, stop, or otherwise penalize maritime traffic. In accordance with the OMB Notice of Action dated April 3, 2018, CBP will submit a discontinuation request for OMB control number 1651–0103 along with this rule’s publication because this information collection is duplicative. H. Privacy Interests DHS will ensure that all Privacy Act requirements and policies are adhered to in the implementation of this rule, and will issue or update any necessary Privacy Impact Assessment and/or Privacy Act System of Records notice to fully outline processes that will ensure compliance with Privacy Act protections. List of Subjects 8 CFR Part 251 Air carriers, Airmen, Aliens, Maritime carriers, Reporting and recordkeeping requirements, Seamen. 8 CFR Part 258 Aliens, Longshore and harbor workers, Reporting and recordkeeping requirements, Seamen. 19 CFR Part 4 Exports, Freight, Harbors, Maritime carriers, Oil pollution, Reporting and recordkeeping requirements, Vessels. Amendments to the Regulations For the reasons stated in the preamble, DHS is amending 8 CFR parts 251 and 258, and 19 CFR part 4, as set forth below. PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 73629 TITLE 8—ALIENS AND NATIONALITY PART 251—ARRIVAL AND DEPARTURE MANIFESTS AND LISTS: SUPPORTING DOCUMENTS 1. The general authority citation for part 251 continues to read as follows: ■ Authority: 8 U.S.C. 1103, 1182, 1221, 1281, 1282, 8 CFR part 2. § 251.1 [Amended] 2. Amend § 251.1 as follows: a. Revise paragraph (a)(1); b. Revise paragraph (a)(2) introductory text; ■ c. In paragraph (a)(2)(i), remove the word ‘‘notation’’ and add in its place ‘‘information’’; ■ d. In paragraph (a)(2)(ii) introductory text, remove the words ‘‘shall note’’ and adding in their place ‘‘must indicate’’; ■ e. In paragraph (a)(2)(iii)(A), remove the words ‘‘shall note on’’ and adding in their place ‘‘must indicate in’’; ■ f. In paragraph (a)(2)(iii)(B): ■ i. Remove the words ‘‘shall note on’’ and add in their place ‘‘must indicate in’’; and ■ ii. Remove the the words ‘‘shall show’’ and add in their place ‘‘must show’’; ■ g. In paragraph (a)(2)(iv) introductory text: ■ i. In the first sentence remove the words ‘‘shall note on’’ and add in their place ‘‘must indicate in’’; and ■ ii. In the second sentence, remove the words ‘‘shall note’’ and add in their place ‘‘must indicate’’; ■ h. In paragraph (a)(2)(v): ■ i. Remove the words ‘‘shall note on’’ and add in their place ‘‘must indicate in’’; and ■ ii. Remove the words ‘‘will note the’’ and add in their place ‘‘will indicate the’’; ■ i. In paragraph (a)(3)(i) introductory text, remove the words ‘‘shall not be’’ and add in its place ‘‘is not’’; ■ j. In paragraph (a)(3)(ii), remove the words ‘‘shall note the manifest in the manner’’ and add in their place ‘‘must follow the instructions’’; ■ k. In paragraph (a)(3)(iii): ■ i. Remove the words ‘‘shall not be’’ and adding in their place ‘‘is not’’; and ■ ii. remove the words ‘‘noted on’’ and add in their place ‘‘indicated in’’; ■ l. In paragraph (a)(4), remove the words ‘‘shall annotate Form I–418 presented at the onward port to indicate’’ and add in their place ‘‘must electronically submit via an electronic data interchange system approved by CBP’’; ■ m. In paragraph (a)(5), remove the words ‘‘accompany the manifest’’ and add in their place ‘‘be sent to CBP ■ ■ ■ E:\FR\FM\28DER1.SGM 28DER1 73630 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations electronically or be presented to CBP upon arrival at the port of immigration inspection’’; ■ n. Add paragraph (a)(6); ■ o. In paragraph (b): ■ i. Remove the word ‘‘shall’’ wherever it appears and add in its place ‘‘must’’; ■ ii. Remove the words ‘‘United States Customs Service’’ and add in their place ‘‘CBP’’; and ■ iii. Remove the word ‘‘annotate’’ and add in its place ‘‘electronically update the data in’’; ■ p. In paragraph (c), remove the word ‘‘shall’’ and add in its place ‘‘must’’. The revisions and addition read as follows: khammond on DSKJM1Z7X2PROD with RULES § 251.1 Arrival manifests and lists. (a) * * * (1) General. Except as provided in paragraph (a)(6) of this section, the master or agent of every vessel arriving in the United States from a foreign place or an outlying possession of the United States must submit a manifest of all crewmen on board by electronically submitting the data elements required on CBP Form I–418, Passenger List—Crew List, via an electronic data interchange system approved by CBP. (2) Longshore work information. Except as provided in paragraph (a)(6) of this section, the master or agent of the vessel must electronically submit via an electronic data interchange system approved by CBP an affirmation as to whether crewmen aboard the vessel will be used to perform longshore work at any United States port before the vessel departs the United States. * * * * * (6) Exception to the requirement to submit Form I–418 data elements and longshore work information electronically. The master or agent of any vessel that is arriving in the United States from a foreign place or an outlying possession of the United States, and is required to submit a manifest, may submit a paper Form I–418 to CBP upon arrival at the port where immigration inspection is performed when: (i) The master or agent of the vessel is unable to electronically submit the data elements required on Form I–418 via an electronic data interchange system approved by CBP because there is no internet access in that location or onboard computers are experiencing technical difficulties, and there is no shore-side support available; or (ii) CBP is experiencing technical difficulties affecting its receipt or processing of electronically submitted information, or, in its discretion, CBP determines that a paper Form I–418 is acceptable under the circumstances VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 presented by the master or agent of a vessel. * * * * * PART 258—LIMITATIONS ON PERFORMANCE OF LONGSHORE WORK BY ALIEN CREWMEN 3. Amend § 251.3 by: a. Revising paragraph (a); and ■ b. Adding a new paragraph (c); The revision and addition read as follows: ■ § 251.3 Departure manifests and lists for vessels. ■ ■ ■ ■ (a) Form I–418, Passenger List-Crew List. Except as provided in paragraphs (b) and (c) of this section, the master or agent of every vessel departing from the United States directly to some foreign place or outlying possession of the United States must electronically submit the data elements required on Form I–418 via an electronic data interchange system approved by CBP, except when a manifest is not required pursuant to section 251.1(a). Submission of inaccurate or incomplete data will be regarded as lack of compliance with section 251(c) of the Act. * * * * * (c) Exception to the requirement to submit Form I–418 data elements electronically. The master or agent of any vessel that is departing from the United States directly to some foreign place or outlying possession of the United States, and is required to submit a manifest, may submit a paper Form I– 418 to CBP at the port from which such vessel is to depart when: (1) The master or agent of the vessel is unable to submit the data elements required on Form I–418 electronically via an electronic data interchange system approved by CBP because there is no internet access in that location or onboard computers are experiencing technical difficulties, and there is no shore-side support available; or (2) CBP is experiencing technical difficulties affecting its receipt or processing of electronically submitted information, or, in its discretion, CBP determines that a paper Form I–418 is acceptable under the circumstances presented by the master or agent of a vessel. 4. Amend § 251.5 as follows: ■ a. Revise the section heading; and ■ b. Remove the words ‘‘in a paper format’’. The revision reads as follows: ■ § 251.5 crew. * PO 00000 * Arrival and departure manifests for * Frm 00016 * Fmt 4700 * Sfmt 4700 5. The general authority citation for part 258 continues to read as follows: Authority: 8 U.S.C. 1101, 1103, 1281; 8 CFR part 2. § 258.2 [Amended] 6. Amend § 258.2 as follows: a. In the introductory text, remove the words ‘‘shall note’’ and add in their place ‘‘must indicate’’; ■ b. In paragraph (a)(2), remove the words ‘‘shall note on’’ and add in their place ‘‘must indicate in’’; ■ c. In paragraph (b)(2)(i), remove the words ‘‘states on the manifest, Form I– 418,’’ and add in their place ‘‘indicates in the manifest, or on Form I–418 if submitting the paper version,’’; ■ d. In paragraph (b)(2)(ii): ■ i. Remove the words ‘‘states on’’ and add in their place ‘‘indicates in’’; and ■ ii. Remove the words ‘‘shall present’’ and add in their place ‘‘must present’’; ■ e. In paragraph (b)(2)(iii)(A), remove the word ‘‘shall’’ and add in its place ‘‘must’’; ■ f. In paragraph (b)(2)(iii)(B): ■ i. Remove the word ‘‘shall’’ and add in its place ‘‘must’’; and ■ ii. Remove the words ‘‘Immigration and Naturalization Service’’ and add in their place ‘‘CBP’’; ■ g. In paragraph (b)(2)(iv); ■ i. In the first sentence, remove the words ‘‘states on’’ and add in their place ‘‘indicates in’’; ■ ii. In the second sentence, remove the word shall and add in its place ‘‘must’’ and remove the words ‘‘shall note on’’ and add in their place ‘‘must indicate in’’; ■ h. In paragraph (b)(3), in the third sentence, remove the words ‘‘shall annotate’’ and add in their place ‘‘must indicate in’’; ■ i. In paragraph (b)(4): ■ i. In the first sentence, remove the words ‘‘the Immigration and Naturalization Service’’ wherever they appear, and add in their place ‘‘CBP’’ and remove ‘‘258(c)(E)(i)’’ and add ‘‘258(c)(4)(E)(i)’’ in its place; and ■ ii. In the second sentence, remove the words ‘‘The Service’’ and add in their place ‘‘CBP’’; and ■ j. In paragraph (e): ■ i. In the first sentence, remove the word ‘‘shall’’ and add in its place ‘‘must’’; and ■ ii. In the second sentence, remove ‘‘noted on the Form I–410’’ and add in its place ‘‘indicated on the electronically populated, or in the circumstances specified in section 251.1 of this chapter, paper, Form I–418’’. E:\FR\FM\28DER1.SGM 28DER1 Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations TITLE 19—CUSTOMS DUTIES § 4.7a. Inward manifest; information required; alternative forms. PART 4—VESSELS IN FOREIGN AND DOMESTIC TRADES * 7. The general authority citation for part 4 continues to read as follows: ■ Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624, 2071 note; 46 U.S.C. 501, 60105. 8. Amend § 4.7 by revising paragraph (a) to read as follows: ■ § 4.7. Inward foreign manifest; production on demand; contents and form; advance filing of cargo declaration. (a) The master of every vessel arriving in the United States and required to make entry must have on board the vessel a manifest, as required by section 431, Tariff Act of 1930 (19 U.S.C. 1431), and by this section. The manifest must be legible and complete. If it is in a foreign language, an English translation must be furnished with the original and with any required copies. The required manifest consists of a Vessel Entrance or Clearance Statement, CBP Form 1300, and the following documents: (1) Cargo Declaration, CBP Form 1302, (2) Ship’s Stores Declaration, CBP Form 1303, and (3) Crew’s Effects Declaration, CBP Form 1304, to which are attached crewmembers’ declarations on CBP Form 5129, if the articles will be landed in the United States. Unless the exception at 8 CFR 251.1(a)(6) applies and a paper form is submitted, the master must also electronically submit the data elements required on CBP Form I–418 via an electronic data interchange system approved by CBP, which will be considered part of the manifest. Any document which is not required may be omitted from the manifest provided the word ‘‘None’’ is inserted in items 16, 18, and/or 19 of the Vessel Entrance or Clearance Statement, as appropriate. If a vessel arrives in ballast and therefore the Cargo Declaration is omitted, the legend ‘‘No merchandise on board’’ must be inserted in item 16 of the Vessel Entrance or Clearance Statement. * * * * * 9. Amend § 4.7a as follows: a. Remove paragraph (b)(2); ■ b. Redesignate paragraphs (b)(3) and (b)(4) as paragraphs (b)(2) and (b)(3), respectively; ■ c. Add paragraph (c)(5); ■ d. In paragraph (d), add the words ‘‘§ 4.7b and with’’ after ‘‘in accordance with’’; and ■ e. Revise paragraph (e). The addition and revision read as follows: ■ khammond on DSKJM1Z7X2PROD with RULES ■ VerDate Sep<11>2014 20:57 Dec 27, 2021 Jkt 256001 * * * * (c) * * * (5) Unaccompanied baggage must be listed on CBP Form 1302, or transmitted via an electronic data interchange system approved by CBP. * * * * * (e) Passenger List. (1) The Passenger List must be completed in accordance with § 4.7b, § 4.50, and with the requirements of applicable DHS regulations administered by CBP (8 CFR part 231). * * * * * ■ 10. Amend § 4.50 as follows: ■ a. In paragraph (a), remove the second sentence; ■ b. Add paragraph (c). The addition reads as follows: § 4.50 Passenger lists. * * * * * (c) By the act of submitting the data elements required on CBP Form I–418 via an electronic data interchange system approved by CBP, the master certifies that CBP baggage declaration requirements have been made known to incoming passengers; that any required CBP baggage declarations have been or will simultaneously be filed as required by law and regulation with the proper CBP officer; that the responsibilities of the vessel operator have been or will be done as required by law or regulation before the proper CBP officer; and that there are no steerage passengers on board the vessel. § 4.81 [Amended] 11. In § 4.81, amend paragraph (d) by removing the phrase‘‘, or Customs and Immigration Form I–418 with attached Customs Form 5129,’’. ■ 12. In § 4.85 amend paragraph (c)(1) by: ■ a. In the third sentence, removing the words ‘‘a Passenger List, Customs and Immigration Form I–418, in such number of copies as may be required for local Customs purposes, of any cargo or passengers on board manifested for discharge at that port,’’; and ■ b. Adding a sentence following the third sentence. The addition reads as follows: ■ § 4.85 Vessels with residue cargo for domestic ports. * * * * * (c) * * * (1) * * * The master must also update the data elements required on CBP Form I–418 that were electronically submitted via an electronic data interchange system approved by CBP for PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 73631 any passengers on board that are manifested for discharge at that port. * * * * * * * * § 4.91 [Amended] 13. In § 4.91 amend paragraph (c) by removing, in the second sentence, the words ‘‘Passenger List, Customs and Immigration Form I–418’’ and adding in their place ‘‘updated data elements required on CBP Form I–418 that were submitted electronically via an electronic data interchange system approved by CBP’’ ■ Alejandro N. Mayorkas, Secretary, U.S. Department of Homeland Security. [FR Doc. 2021–27571 Filed 12–27–21; 8:45 am] BILLING CODE 9111–14–P NUCLEAR REGULATORY COMMISSION 10 CFR Parts 11, 25, and 95 [NRC–2020–0133] RIN 3150–AK49 Access Authorization Fees Nuclear Regulatory Commission. ACTION: Direct final rule. AGENCY: The U.S. Nuclear Regulatory Commission (NRC) is amending its regulations to update the access authorization fees charged to NRC licensees for work performed under the Material Access Authorization Program and the Information Access Authority Program. The change in fees is due to an increase in the review time for each application for access authorization. This amendment is prompted by a recent audit of fees performed by an external certified public accounting and financial management services firm and ensures that the NRC continues to recover the full costs of processing access authorization requests from NRC licensees. The direct final rule also makes two administrative changes to revise definitions to include new naming conventions for background investigation case types and to specify the electronic process for completing security forms. DATES: The final rule is effective March 14, 2022, unless significant adverse comments are received by January 27, 2022. If the direct final rule is withdrawn as a result of such comments, timely notification of the withdrawal will be published in the Federal Register. Comments received SUMMARY: E:\FR\FM\28DER1.SGM 28DER1

Agencies

[Federal Register Volume 86, Number 246 (Tuesday, December 28, 2021)]
[Rules and Regulations]
[Pages 73618-73631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27571]


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DEPARTMENT OF HOMELAND SECURITY

8 CFR Parts 251 and 258

U.S. Customs and Border Protection

19 CFR Part 4

[Docket No. USCBP-2021-0046; CBP Dec. No. 21-19]
RIN 1651-AB18


Automation of CBP Form I-418 for Vessels

AGENCY: U.S. Customs and Border Protection, DHS.

ACTION: Interim final rule; solicitation of comments.

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SUMMARY: This rule amends the regulations in title 8 and title 19 of 
the Code of Federal Regulations (CFR) regarding the submission of U.S. 
Customs and Border Protection (CBP) Form I-418, Passenger List--Crew 
List (Form I-418) in paper form. Currently, the master or agent of 
every commercial vessel arriving in the United States, with limited 
exceptions, must submit Form I-418, along with certain information 
regarding longshore work, in paper form to CBP at the port where 
immigration inspection is performed. Most commercial vessel operators 
are also required to submit a paper Form I-418 to CBP at the final U.S. 
port prior to departing for a foreign place. DHS is modifying the 
applicable regulations to provide for the electronic submission of Form 
I-418. Under this rule, vessel operators will be required to 
electronically submit the data elements on Form I-418 to CBP through an 
electronic data interchange system (EDI) approved by CBP in lieu of 
submitting a paper form. This will streamline vessel arrival and 
departure processes by providing for the electronic submission of the 
information collected

[[Page 73619]]

on the Form I-418, eliminating redundant data submissions, simplifying 
vessel inspections, and automating recordkeeping.

DATES: 
    Effective date: This rule is effective February 28, 2022.
    Comments due date: Comments must be received on or before February 
28, 2022.

ADDRESSES: You may submit comments, identified by docket number, by the 
following method:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments via docket number 
USCBP-2021-0046.
    Due to COVID-19-related restrictions, CBP has temporarily suspended 
its ability to receive public comments by mail.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the Supplementary Information 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Due to relevant 
COVID-19-related restrictions, CBP has temporarily suspended on-site 
public inspection of submitted comments.

FOR FURTHER INFORMATION CONTACT: For title 8 of the Code of Federal 
Regulations inquiries, contact Stephen Dearborn, Enforcement Programs 
Division, Admissibility and Passenger Programs, Office of Field 
Operations, [email protected] or (202) 344-1707; for title 
19 of the Code of Federal Regulations inquiries, contact Brian Sale, 
Manifest and Security Division, Cargo and Conveyance Security, Office 
of Field Operations, [email protected] or (202) 325-3338.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Public Participation
II. Background
    A. Overview
    B. Current Commercial Vessel Arrival and Departure Processing
    C. Form I-418 Automation Test Program
    D. Form I-418 Automation Regulations
    E. Discussion of Regulatory Changes
     1. 8 CFR part 251
     2. 8 CFR part 258
     3. 19 CFR part 4
III. Statutory and Regulatory Requirements
    A. Administrative Procedure Act
    B. Executive Order 13563 (Improving Regulation and Regulatory 
Review) and Executive Order 12866 (Regulatory Planning and Review)
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act of 1995
    E. Executive Order 13132
    F. Executive Order 12988 Civil Justice Reform
    G. Paperwork Reduction Act
    H. Privacy Interests
List of Subjects
Amendments to the Regulations

I. Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of this 
interim final rule. The Department of Homeland Security (DHS) and U.S. 
Customs and Border Protection (CBP) invite comments that relate to the 
economic, environmental, or federalism effects that might result from 
this interim final rule. Comments that will provide the most assistance 
to CBP will reference a specific portion of the interim final rule, 
explain the reason for any recommended change, and include data, 
information, or authority that support such recommended change.

II. Background

A. Overview

    As discussed in detail below, current regulations require 
commercial vessels and their operators \1\ to meet several data 
submission requirements when arriving in the United States from a 
foreign place or outlying possession of the United States and when 
departing the United States for a foreign place or outlying possession 
of the United States. Both CBP and the U.S. Coast Guard (USCG) collect 
information in these contexts, and many of the data elements that the 
two agencies collect overlap. Some of this data must be submitted 
electronically, while some of it must be submitted on paper, such as 
the Form I-418, Passenger List--Crew List. See section 251.5 of title 8 
of the Code of Federal Regulations (8 CFR 251.5). Through this rule, 
CBP is streamlining the vessel arrival and departure processes by 
eliminating redundant data submissions, providing for the electronic 
submission of the information collected on the Form I-418, simplifying 
vessel inspections, and automating recordkeeping for the Form I-418.
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    \1\ For the purposes of this document, vessel ``operators'' 
include masters or commanding officers, or authorized agents, 
owners, or consignees.
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    The USCG requires commercial vessel operators to submit a Notice of 
Arrival (NOA) to the National Vessel Movement Center (NVMC) \2\ through 
its electronic Notice of Arrival/Departure (eNOA/D) system or via email 
in advance of U.S. arrival.\3\ See 33 CFR 160.201-216. In addition to 
other data elements, each NOA must include information on the crew and 
passengers on board the vessel. See 33 CFR 160.206(a). Upon 
satisfactory submission, USCG processes the information via the eNOA/D 
web portal and then the system automatically transmits it to CBP as an 
Advance Passenger Information System (APIS) manifest. An APIS manifest 
is a CBP pre-arrival requirement. See 8 CFR 231.1(a) and 19 CFR 4.7b.
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    \2\ The NVMC was established by USCG in 2001 to operate as a 
single clearinghouse for the submission and processing of notice of 
arrival and departure information for vessels entering and departing 
U.S. ports and facilities.
    \3\ When a vessel operator is in an area without internet access 
or experiences technical difficulties, and he or she has no shore-
side support available, the vessel operator may fax or phone the 
submission to the NVMC. See 33 CFR 160.210(a).
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    In addition to the APIS manifest data, which must be submitted 
electronically to CBP prior to arrival, DHS regulations require the 
master or agent of every vessel arriving in the United States from a 
foreign place or outlying possession of the United States, with the 
exception of certain vessels in the Great Lakes, to present a manifest 
of all crewmen onboard, on a Form I-418, to CBP at the port of entry 
where immigration inspection is performed.4 5 See 8 CFR 
251.1(a)(1). Manifest information collected on the Form I-418 includes 
details about the passengers and crewmen on board the vessel and 
whether any of the crewmen will be performing longshore work at any 
U.S. port before the vessel departs from the United States. See 8 CFR 
251.1. If longshore work is to be performed, Form I-418 requires the 
vessel operator to note which exception of the Immigration and 
Nationality Act permits the work. See 8 CFR 251.1(a)(2)(ii) and 258.2.
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    \4\ For more information on the exemptions for certain Great 
Lakes vessels, see 8 CFR 251.1(a)(3).
    \5\ Due to the high volume of crew and passengers on cruise 
ships, cruise ship operators generally submit the two signature 
pages of the Form I-418 on paper along with a compact disc 
containing their passenger and crew manifest details.
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    If manifest information changes after the initial submission, the 
vessel operator must update the APIS manifest electronically through 
the eNOA/D system. See 19 CFR 4.7b(b)(2)(ii). Additionally, a CBP 
officer at the coastwise port generally updates the vessel's original 
paper Form I-418 to reflect any changes.

[[Page 73620]]

    Upon departure from the United States, USCG collects updated 
manifest information from commercial vessel operators via a Notice of 
Departure (NOD) submitted to the NVMC through eNOA/D or another 
electronic format. See 33 CFR 160.201-216. Also at the time of 
departure, CBP requires vessel operators to update their original paper 
Form I-418 submission to include a list of departing crew, crew 
changes, and trip departure details.\6\ See 8 CFR 251.3. A CBP officer 
at the port of departure typically verifies any changes to the Form I-
418 information and sends the updated form to the vessel's first port 
of arrival for final data reconciliation and recordkeeping purposes.
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    \6\ Certain Great Lakes vessels are also exempt from this 
requirement. See 8 CFR 251.3(b).
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    Despite similarities in the vessel arrival and departure data 
submitted in accordance with the Form I-418, APIS, and USCG 
requirements, data transmitted electronically, such as through eNOA/D, 
does not satisfy the current Form I-418 regulatory requirements, which 
state that Form I-418 must be submitted in paper format. See 8 CFR 
251.5. As described in depth below, these overlapping submission 
requirements create a substantial burden on vessel operators, and the 
maintenance, verification, and storage of the paper Form I-418 is a 
significant burden on CBP officers and the agency as a whole.
    To reduce redundant data submissions and to ease burdens on vessel 
operators and the agency itself, CBP is modifying its regulations to 
allow for the electronic submission of Form I-418 only. The updated 
regulations require vessel operators to submit the data elements 
required on Form I-418 electronically via an electronic data 
interchange system (EDI) approved by CBP. Presently, the CBP-approved 
EDI is eNOA/D. Data submitted via eNOA/D will be automatically 
transmitted to CBP, which will use the information to populate an 
electronic version of the Form I-418.\7\ The information currently 
collected through eNOA/D will satisfy the required data elements for 
populating the electronic version of the Form I-418 for CBP's purposes. 
The act of electronically submitting the data elements required on Form 
I-418 constitutes the Master's certification that CBP baggage 
declaration requirements have been made known to incoming passengers; 
that any required CBP baggage declarations have been or will 
simultaneously be filed as required by law and regulation with the 
proper CBP officer; that the responsibilities of the vessel operator 
have been or will be done as required by law or regulation before the 
proper CBP officer; and that there are no steerage passengers on board 
the vessel. As explained further below, CBP will no longer collect the 
vessel operator's signature for the Master's certification during 
inspection. The electronically submitted information will then be 
reviewed and confirmed by the inspecting CBP officer. This rule will 
streamline vessel arrival and departure processes by eliminating 
redundant data submissions, simplifying vessel inspections, and 
automating recordkeeping. Any changes regarding the CBP-approved EDI 
will be announced in a notice published in the Federal Register.
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    \7\ The embark date required on Form I-418 is transmitted to CBP 
via eNOA/D. The disembark date/date separated (i.e., the date when a 
crewmember permanently departs the vessel) is calculated by CBP. 
This rule does not change this practice.
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B. Current Commercial Vessel Arrival and Departure Process

    Commercial vessels arriving at and departing from U.S. ports of 
entry must comply with statutory and regulatory requirements to engage 
in U.S. trade.\8\ Commercial vessels, regardless of whether they are 
cargo, non-cargo,\9\ or cruise ships, traveling to a U.S. port of entry 
from a foreign port or place must begin their trip by submitting 
certain manifest information electronically to USCG and CBP prior to 
arrival. Once at a U.S. port of entry, commercial vessels must submit 
additional information and undergo customs and immigration inspections 
and processing. These arrival requirements vary by commercial vessel 
type and slightly differ by port of entry.
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    \8\ The regulatory requirements concerning how and when a vessel 
operator must submit an I-418 are contained in parts 251 and 258 of 
title 8 of the Code of Federal Regulations, and in part 4 of title 
19 of the Code of Federal Regulations.
    \9\ For the purposes of this document, non-cargo commercial 
vessels include all commercial vessels other than cargo ships and 
cruise ships. Tugboats fall under this classification.
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1. Cargo and Non-Cargo Vessels
    In general, upon a cargo or non-cargo vessel's arrival, CBP 
officers at the port of entry travel to the vessel's docking station 
and board it. Next, CBP requests and reviews the vessel's entry and 
manifest documentation, along with passenger and crew passports and 
visas. For manifest verification, the vessel's operator or agent 
typically submits two copies of the vessel's passenger and crew 
manifest using Form I-418 to the CBP officers aboard the vessel. CBP 
uses the paper Form I-418 for crew and passenger admissibility 
inspections and processing.
    During the admissibility inspection process, a CBP officer verifies 
the actual crew and passengers on hand and those departing the vessel 
using a copy of the paper Form I-418, the previously submitted APIS 
manifest, pre-arrival screening results, and passports and visas. 
Barring any unresolvable issues, the CBP officer annotates the 
inspection results, including any discrepancies, on the paper Form I-
418 submissions. The CBP officer collects the vessel operator's 
signature on the form and signs and stamps the documents. The CBP 
officer then provides one copy of the signed, stamped, and annotated 
Form I-418 to the vessel operator to use during coastwise travel and 
upon departure from the United States. The CBP officer at the first 
port of arrival retains the other copy of the original signed, stamped, 
and annotated Form I-418 for subsequent data reconciliation and 
recordkeeping purposes.
    After the admissibility inspections and processing are complete, 
the CBP officers disembark the vessel, travel back to their port 
office, manually record the results of their inspections and related 
actions into CBP data systems, and send applicable Form I-418 
supporting documentation, to the next port of arrival.
    Once granted entry, the vessel may engage in further coastwise 
travel within the territorial waters of the United States or depart the 
United States. If manifest information changes after initial 
submission, the vessel operator must update the APIS manifest 
electronically through the eNOA/D system. The vessel operator must also 
present the initial signed, stamped, and annotated Form I-418 copy to a 
CBP officer when requested at a coastwise port of arrival.\10\ The CBP 
officers at these subsequent ports of arrival update the Form I-418 to 
reflect any manifest changes, verify new supporting documentation if 
applicable, take admissibility actions as necessary, and provide the 
updated Form I-418 to the vessel operator for further U.S. travel and 
ultimate departure. The CBP officers at each coastwise port send a copy 
of the updated Form I-418 to the vessel's first port of arrival for 
data reconciliation and recordkeeping purposes.
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    \10\ Per sections 235 and 252 of the Immigration and Nationality 
Act, CBP may board and inspect vessels at subsequent coastwise ports 
of arrival. See 8 U.S.C. 1225(d); See also 8 U.S.C. 1282.
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    Upon departure from the United States, USCG requires commercial 
vessel operators to submit a NOD to

[[Page 73621]]

NVMC through eNOA/D or another electronic format. CBP requires these 
vessel operators to update their APIS manifest electronically through 
the eNOA/D system; update their paper Form I-418 to include a list of 
departing crew, crew changes, and trip departure details; and submit 
the paper Form I-418 to CBP. A CBP officer at the port of departure 
verifies any additional modifications to the form information and sends 
the completed Form I-418 and supporting documentation to the vessel's 
first port of arrival. There, a CBP officer manually reconciles the 
original Form I-418 retained during the initial arrival inspection with 
the subsequently updated versions of the form and related 
documentation.
    CBP officers spend considerable time vetting pre-arrival data, 
traveling to/from a vessel, boarding/disembarking the ship, and 
conducting admissibility inspections and processing. In addition, CBP 
officers typically spend 120 minutes (2 hours) performing post-
inspection processing for each vessel's paper Form I-418 submission 
from arrival to departure.\11\ This includes the time CBP spends 
manually recording form information and actions into CBP systems, 
communicating between ports of arrival and departure, manually 
validating and reconciling data, gathering and sending supporting 
documentation, physically storing and shipping the manifest package, 
and tracking the manifest package.
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    \11\ Source: Correspondence with CBP's Office of Field 
Operations on November 6, 2020.
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2. Cruise Ships
    Cruise ships follow slightly different procedures from cargo and 
non-cargo vessels upon arriving at a U.S. port of entry. At their first 
port of arrival, cruise ship crewmembers and passengers generally 
offload the ship at a designated terminal, where CBP officers are 
stationed and readily available to conduct customs and immigration 
inspections and processing. Under the standard arrival process, the 
cruise ship operator generally provides two copies of Form I-418's 
complete passenger and crew manifest with all printed pages.\12\ Cruise 
ship operators arriving at some POEs submit just two copies of the two 
signature pages of the paper Form I-418 and a compact disc of the 
manifest in lieu of submitting numerous pages of paper to CBP.
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    \12\ An unknown number of cargo and non-cargo vessel operators 
and cruise ship operators arriving/departing at some POEs may 
provide additional copies of the Form I-418 to CBP during each 
standard arrival/departure. Source: Email correspondence with CBP's 
Office of Field Operations on November 18, 2020.
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    During the standard admissibility inspection process, a CBP officer 
validates and verifies the cruise ship's actual crew and passengers on 
hand and those departing the vessel generally using the Form I-418, the 
previously submitted APIS manifest, pre-arrival screening results, and 
passports and visas. Any inspection results and admission/landing 
rights from such processing are directly recorded into CBP data 
systems. During cruise ship crew and passenger processing, the CBP 
officer also collects the vessel operator's signature on the form 
copies, signs and stamps the documents. The CBP officer then provides 
one copy of the signed and stamped Form I-418 or signature pages for 
the vessel operator to retain and use in coastwise travel and upon 
departure from the United States. The CBP officer at the first port of 
arrival retains the other copy of the signed, stamped, and annotated 
Form I-418 or signature pages for subsequent data reconciliation and 
recordkeeping purposes.
    Once granted entry, the cruise ship may engage in further coastwise 
travel or depart the United States. If manifest information changes 
during coastwise movement, the vessel operator must update the APIS 
manifest electronically through the eNOA/D system. The vessel operator 
must also present the initial signed, stamped, and annotated Form I-418 
signature pages to a CBP officer at each coastwise port of arrival upon 
request. The CBP officers at these subsequent ports of arrival review 
the Form I-418 or signature pages and update CBP data systems to 
reflect any manifest changes, verify new, applicable supporting 
documentation, take admissibility actions as necessary, and provide the 
Form I-418 or signature pages to the vessel operator for further U.S. 
travel.
    As discussed above, upon departure from the United States, USCG 
requires commercial vessel operators to submit a NOD to the NVMC 
through eNOA/D or another electronic format. CBP requires these vessel 
operators to update their APIS manifest electronically through an 
approved system (currently, the eNOA/D system) and submit the two 
signature pages of the signed and stamped Form I-418 to CBP. See 8 CFR 
251.3. A CBP officer at the port of departure verifies any additional 
modifications to the form information and sends the completed Form I-
418 signature page and supporting documentation to the vessel's first 
port of arrival. There, a CBP officer manually reconciles the original 
Form I-418 signature page, supporting documentation, and manifest 
compact disc with the subsequently updated versions of the form and 
related documentation.
    In addition to time spent vetting pre-arrival data and conducting 
admissibility inspections and processing, CBP officers spend an average 
of 20 minutes (0.333 hours) performing post-inspection processing for 
each cruise ship's Form I-418 submission from arrival to departure.\13\ 
This includes the time CBP spends manually validating and reconciling 
data, gathering supporting documentation, communicating between ports 
of arrival and departure (when necessary), physically storing and 
shipping the manifest package, and tracking the manifest package (when 
necessary).
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    \13\ Source: Email correspondence with CBP's Office of Field 
Operations on June 2, 2020.
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3. Additional Form I-418 Requirements for Vessels Under Title 19 CFR
    Part 4 of title 19 of the CFR provides additional requirements as 
to when and how a vessel operator must submit Form I-418. Under 19 CFR 
4.7(a), the master of every vessel arriving in the United States and 
required to make entry must have on board a manifest that includes Form 
I-418. In some instances, a vessel operator may submit a Form I-418 in 
lieu of the Crew's Effects Declaration, CBP Form 1304, with supporting 
documentation. See 19 CFR 4.7(a), 4.7a(b)(2), and 4.81(d). However, 
when given the option, most vessel operators submit CBP Form 1304 
instead of Form I-418 with additional supporting documentation, such as 
individual CBP Forms 5129, Crew Member's Declaration.

C. Form I-418 Automation Test Program

    Recognizing the need to reduce redundant data collection and 
implement a seamless process to receive and use vessel arrival and 
departure information under various regulations, CBP developed a 
voluntary Form I-418 automation test program. The program tested CBP's 
ability to gather and reconcile information submitted for eNOA/D, APIS, 
and other electronic purposes for use in generating an automated, 
electronic Form I-418. CBP implemented this test in two phases as 
described below. The test varied somewhat across participating ports. 
Although the automated test program is still in operation at many ports 
of entry, the test program will be replaced by the regulatory program 
addressed in this rule.

[[Page 73622]]

    CBP launched the first phase of the voluntary automation test 
program at four ports of entry in January 2011. The first phase allowed 
CBP officers and ports to evaluate the submission of Form I-418 data in 
both electronic and paper format to verify the similarity of 
information captured and identify any anomalies in the methods used. 
Moreover, it allowed CBP officers to rely solely on electronic manifest 
data submissions to build a vessel's departure manifest, thus 
eliminating the need for vessel operators to submit the departure 
manifest in paper format.
    By June 2011, CBP implemented the second and final phase of the 
voluntary test program, which fully transitioned the submission of Form 
I-418 data to an automated, paperless process for certain commercial 
vessel operators. In place of submitting the required I-418 information 
on the paper Form I-418, vessel operators participating in the I-418 
Automation test program could transmit this data through eNOA/D and 
APIS data submissions. Under the automation test, CBP systems 
automatically compiled eNOA/D, APIS, and any other electronic manifest 
data submitted electronically by test participants prior to arrival and 
at departure into a pre-populated electronic Form I-418. Upon a 
participating cargo or non-cargo vessel's arrival, CBP largely pre-
vetted the electronic Form I-418 and printed out a paper copy of the 
form for customs and immigration inspection and processing purposes.
    As with current arrival requirements for cargo and non-cargo 
commercial vessels, a CBP officer then boarded the vessel, conducted 
inspections, annotated the admissibility inspection results on the 
paper Form I-418, collected the vessel operator's signature on the 
form, and signed and stamped the document. Before disembarking the 
vessel, the CBP officer had the vessel operator make a copy of the 
signed, stamped, and annotated paper Form I-418 for further coastwise 
travel and departure. The CBP officer then returned to the port office 
to manually record the inspection results and related actions annotated 
on the original Form I-418 into CBP data systems.
    For cruise ships participating in the I-418 Automation test 
program, CBP generally pre-vetted the electronic Form I-418, printed 
out a paper copy of the Form I-418's two signature pages, and conducted 
passenger and crew processing like the standard process at a terminal. 
Instead of requiring the submission of a full paper Form I-418 or 
manifest CDs, CBP officers largely conducted arrival inspections and 
processing electronically at the terminal. CBP officers also used the 
two paper Form I-418 signature pages to collect the vessel operator's 
signature and to sign and stamp the pages to generally meet existing 
paper Form I-418 retention requirements.
    Before departing for their next port of call, test participants 
could transmit any manifest changes subsequent to the initial 
inspection at the port of arrival via the eNOA/D system. These changes 
included, but were not limited to, the sign-on or sign-off of 
crewmembers. As under the standard commercial vessel arrival/departure 
process, a CBP officer at the next port of call verified that the 
information submitted met the vessel's regulatory requirements. Upon 
departure from the United States, a CBP officer at the port of 
departure performed an electronic reconciliation of the vessel's 
arrival, coastwise, and departure manifest data and addressed any 
discrepancies. Then, the officer sent all paper documentation, 
typically via fax, to the first port of arrival.
    In 2015, CBP migrated to mobile devices that allowed CBP officers 
to electronically conduct Form I-418 processing for cargo and non-cargo 
vessel arrivals (including I-418 Automation test program participants 
and non-participants) at different ports of entry, thereby removing the 
need to print off a paper Form I-418. With these devices, CBP officers 
directly recorded the inspection results and related actions into CBP 
data systems at the time of inspection and processing. In 2016, CBP 
successfully deployed its preexisting electronic signature (hereafter, 
``e-signature'') capability through its mobile devices at five major 
sea ports of entry. This tool allowed for the electronic collection of 
vessel operator and CBP officer signatures on the Form I-418, which 
removed the need to print off a copy of the Form I-418 and have the 
vessel operator sign it. Despite these streamlined electronic 
processing methods, CBP continued to also record vessel inspection 
results and signatures on the paper form and physically stamp the form 
to meet the regulatory requirements in place regarding the submission 
and retention of paper Form I-418.
    Most U.S. ports of entry along with approximately 15 percent of 
cargo and non-cargo vessels and 56 percent of cruise ships are fully or 
partially participating in the above-described voluntary automation 
test program, including electronic submissions and e-signature 
capabilities.\14\
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    \14\ Based on fiscal year (FY) 2019 data.
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D. Form I-418 Automation Regulatory Program

    CBP is amending its regulations to require the electronic 
submission of the data elements required on Form I-418 in lieu of its 
current paper form. This will streamline vessel arrival and departure 
processes by eliminating redundant data submissions, simplifying vessel 
inspections, and automating recordkeeping. The updated regulations will 
require vessel operators to electronically submit the data elements 
required on the Form I-418 via an EDI approved by CBP. CBP will 
continue to use the eNOA/D system as the approved EDI. Under this 
process, CBP systems will compile eNOA/D, APIS, and any other 
electronic manifest data submitted by vessel operators to the NVMC 
prior to arrival and at departure into an automated CBP system. CBP 
will use its system for all commercial vessel crew and passenger 
admissibility inspections and processing, and thus generally establish 
a fully paperless passenger and crew list process for all commercial 
vessel arrivals and departures. Any changes to the CBP-approved EDI 
will be announced in a notice published in the Federal Register.
    With this automated system, for each commercial vessel arrival from 
a foreign port or place, CBP will be able to pre-vet the vessel's 
electronic passenger and crew list, travel to/from and board/disembark 
the vessel (for cargo and non-cargo vessels only), conduct inspections, 
and record the admissibility inspection results and related actions in 
real time using a mobile device or computer station (for the majority 
of cruise ships).\15\ During arrivals/departures processed with mobile 
devices, CBP officers will directly record the inspection results and 
related actions into CBP data systems at the time of inspection and 
processing, eliminating the need for CBP officers to manually input the 
inspection results and related actions into CBP data systems later at 
the port office. CBP will also use the mobile devices to verify the 
electronically submitted data during the inspection process. The 
inspecting CBP officer will no longer collect the vessel operator's 
signature for the Master's certification, as now the act of submitting 
the data electronically will constitute certification. Once the 
passenger and crew list is verified electronically by the inspecting 
CBP officer, CBP will

[[Page 73623]]

generate and transmit a read-only copy of the electronic Form I-418, 
only upon request, with an electronic CBP receipt number, by email to 
the vessel operator for use during coastwise movement or upon departure 
from the United States. The verified electronic passenger and crew list 
will also be converted to a writeable file and stored in CBP data 
systems.
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    \15\ CBP processes the majority of cruise ship arrivals at 
terminals using computer stations; however, CBP now processes some 
cruise ship arrivals using mobile devices.
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    As in the automation test program, before departing for their next 
port of call, vessel operators will be able to transmit any manifest 
changes subsequent to the vessel's inspection at the first port of 
arrival via the NVMC. A CBP officer at the next port of arrival will 
verify these changes and record all updates, inspection results, and 
related actions in real time in the CBP system using a mobile device or 
computer station. The CBP officer will then save the updated electronic 
passenger and crew list in CBP data systems, and email a read-only copy 
to the vessel operator, if requested. Upon departure from the United 
States, a CBP officer at the port of departure will verify the vessel's 
arrival, coastwise, and departure manifest data, which CBP data systems 
will reconcile automatically, and address any discrepancies. 
Thereafter, the CBP officer will save the completed electronic 
passenger and crew lists in CBP data systems, where it will be stored 
electronically for at least five years. In the limited instances where 
a paper Form I-418 is submitted, CBP will continue its current process 
of collecting, verifying, and physically storing all paper Form I-418 
supporting documentation.

E. Discussion of Regulatory Changes

    DHS is amending parts 251 and 258 of title 8 of the CFR, as well as 
part 4 of title 19 of the CFR, as set forth below, to automate Form I-
418 and, in some provisions, eliminate the option to submit the Form I-
418 in lieu of other required forms in order to reflect current trade 
practices and improve efficiency in data submission. The amendments 
also update the regulations to incorporate ``plain language'' 
consistent with Executive Order 13563, ``Improving Regulation and 
Regulatory Review'' (76 FR 3821).
1. 8 CFR Part 251
    Section 251.1 addresses ``Arrival manifests and lists'' in the 
immigration context. Section 251.1(a) sets out the requirements for 
arrival manifests and lists for vessels. Specifically, this section 
requires the master or agent of every vessel to submit a paper Form I-
418 to CBP at the port where immigration inspection is performed and 
that the master or agent provide certain information regarding 
longshore work. This section is being amended to reflect the new 
procedure through which the information requested on Form I-418 and 
about longshore work is submitted electronically through an EDI 
approved by CBP. Conforming amendments are being made throughout this 
section to accommodate the new submission process. For instance, where 
the regulations state that the master or agent must ``note on'' the 
manifest certain information about longshore work, the regulations are 
being amended to state that this information must now be ``indicate[d] 
in'' the manifest, because such additional information and annotations 
will generally no longer be collected on a hard copy, but will be done 
through an electronic interface.
    Section 251.1(a) is also being amended to include two exceptions to 
the new general rule that I-418 and longshore work data be submitted 
electronically. The first exception is where the master or agent of the 
vessel is unable to electronically submit the data elements required on 
Form I-418 via an electronic data interchange system approved by CBP 
due to technical issues, such as when the onboard computer system is 
malfunctioning, or there is no internet access, and there is no shore-
side support available. The second is where CBP is experiencing 
technical difficulties affecting its receipt or processing of 
electronically submitted information, or where CBP, in its discretion, 
determines that a paper Form I-418 is acceptable under the 
circumstances presented by the master or agent of a vessel. The latter 
includes, but is not limited to, where there is a medical or weather 
emergency, or, in the case of longshore work, when information and 
relevant data cannot be submitted through the eNOA/D system due to its 
format.
    Lastly, additional minor amendments are being made to section 251.1 
to incorporate ``plain language'' including replacing the word 
``shall'' with either ``must'' or ``will'', as appropriate.
    Section 251.3 addresses ``Departure manifests and lists for 
vessels'' in the immigration context. Specifically, this section 
requires the master or agent of every vessel to submit a paper Form I-
418 to CBP at the port from which the vessel is to depart directly to 
some foreign place or outlying possession of the United States. This 
section is being amended to reflect the new procedure through which the 
information requested on the Form I-418 is submitted electronically 
through an EDI approved by CBP.
    Section 251.3 is also being amended to include two exceptions to 
the new general rule that I-418 data be submitted electronically. The 
first is where the master or agent of the vessel is unable to 
electronically submit the data elements required on Form I-418 via an 
electronic data interchange system approved by CBP due to technical 
issues, such as when an onboard computer system is malfunctioning. The 
second exception allows for a paper Form I-418 to be submitted when CBP 
is experiencing technical issues or where CBP, in its discretion, 
determines that a paper Form I-418 is acceptable under the 
circumstances presented by the master or agent of a vessel.
    Section 251.5 requires the master or commanding officer, or 
authorized agent, owner, or consignee, of a commercial vessel or 
commercial aircraft arriving in or departing from the United States to 
submit arrival and departure manifests in a paper format in accordance 
with Sec. Sec.  251.1, 251.3, and 251.4. This section is being amended 
to remove references to paper, as this information will now be 
submitted electronically in the vessel context.
2. 8 CFR Part 258
    Section 258.2 requires masters and agents who use nonimmigrant 
crewmen to perform longshore work under one of the exceptions listed in 
the section, to indicate on the crew manifest that an exception is 
being used and to note which exception will be performed. Among other 
things, it sets forth the documentation that must be presented. This 
section is being amended to reflect the new procedure through which the 
information requested on the Form I-418 is submitted electronically 
through an EDI approved by CBP. This rule does not make changes to any 
of the other documentation requirements in section 258.2. Additional 
minor amendments are being made to section 258.2, such as replacing the 
term ``shall'' with ``must.'' The term ``Immigration and Naturalization 
Service'' is also being updated and replaced with ``CBP.''
3. 19 CFR Part 4
    Section 4.7 concerns ``Inward foreign manifest; production on 
demand; contents and form; advance filing of cargo declaration.'' 
Pursuant to section 4.7(a), a paper Form I-418 is a required document 
for the manifest. This section is being amended to reflect the new 
electronic submission of the data elements required on Form I-418. 
Section 4.7(a) is being amended to require vessel operators to submit 
the data elements required on Form I-418

[[Page 73624]]

via the EDI approved by CBP, and to provide that the electronic 
submission will be considered part of the manifest required under this 
section.
    Section 4.7a addresses ``Inward manifest; information required; 
alternative forms.'' Pursuant to Section 4.7a(b)(2), the master of a 
vessel may, in lieu of describing the articles on CBP Form 1304, 
furnish a CBP Form I-418. However, submitting CBP Form I-418 with the 
required CBP Form 5129 instead of CBP Form 1304 generally takes more 
time for the trade community to complete and takes more time for CBP to 
review and process the forms, as well as providing redundant 
information contained in other required forms. Therefore, to reflect 
current trade practices and improve data submission efficiency, this 
section is being amended to remove the option of filing a paper Form I-
418 instead of CBP Form 1304. Conforming edits are also being made to 
section 4.7(a), for the same reason.
    Sections 4.7a(d) and (e) are being amended to incorporate the 
information submission requirements contained in section 4.7b 
concerning the APIS data. Section 4.7a(e) is being amended to remove 
the certification requirements. Currently, the regulation requires a 
paper form certification to be attached to Form I-418. In light of the 
automation of CBP Form I-418, it will be impractical to require a paper 
form certification. Under this rule, vessel operators will be required 
to submit the data elements required on CBP Form I-418 via an 
electronic data interchange system approved by CBP. The regulation 
specifies that the act of electronically submitting the data will serve 
as the Master's certification, as described further in this preamble's 
discussion of the amendments to section 4.50.
    Section 4.50 concerns the passenger lists that the master of every 
vessel arriving at a U.S. port from a foreign port or place must 
submit. Specifically, section 4.50(a) requires the master of the vessel 
to submit Form I-418 if the vessel is arriving from a noncontiguous 
foreign territory and is carrying steerage passengers. Section 4.50(a) 
is being amended to reflect the new procedure for submitting the data 
elements of Form I-418 through an EDI approved by CBP, including 
reference to the required information required under section 4.7b(b)(3) 
for such passengers. Section 4.50 is also being amended to include a 
new paragraph (c) that will replace the paper form certification 
requirement in section 4.7a(e). New subsection 4.50(c), provides that 
by the act of submitting the data elements required on CBP Form I-418 
via an electronic data interchange system approved by CBP, the vessel 
operator certifies that CBP baggage declaration requirements have been 
made known to incoming passengers; that any required CBP baggage 
declarations have been or will simultaneously be filed as required by 
law and regulation with the proper CBP officer; that the 
responsibilities of the vessel operator have been or will be done as 
required by law or regulation before the proper CBP officer; and that 
there are no steerage passengers on board the vessel.
    Section 4.81 addresses ``Reports of arrivals and departures in 
coastwise trade.'' Section 4.81(d) provides the master of the vessel 
with an option of either submitting the traveling Crew's Effects 
Declaration, Customs Form 1304, or Form I-418 with attached Customs 
Form 5129, with the port director upon arrival at each port in the 
United States. Like the amendment to remove the option to submit Form 
I-418 in section 4.7a, this section is being amended to remove the 
option of filing a Form I-418 instead of CBP Form 1304 to reflect 
current trade practices and improve data submission and efficiency.
    Section 4.91 concerns the diversion of a vessel and the 
transshipment of cargo. Section 4.91(c) requires that when inward 
foreign cargo or passengers are transshipped to another vessel under 
customs supervision, a separate traveling manifest must be used for the 
transshipped cargo or passengers. Section 4.91(c) provides the master 
of the vessel with the option of submitting either a Cargo Declaration, 
CBP Form 1302, or Form I-418. This section is being amended to reflect 
the new procedure for submitting the data elements of Form I-418 
through an EDI approved by CBP.

III. Statutory and Regulatory Requirements

A. Administrative Procedure Act

    The Administrative Procedure Act (APA) generally requires agencies 
to publish a notice of proposed rulemaking in the Federal Register (5 
U.S.C. 553(b)) and provide interested persons the opportunity to submit 
comments (5 U.S.C. 553(c)). However, the APA provides an exception to 
this prior notice and comment requirement for ``rules of agency 
organization, procedure, or practice'' 5 U.S.C. 553(b)(A). This interim 
final rule is a procedural rule promulgated for efficiency purposes 
that falls within this exception.
    This rule is procedural because it merely automates an existing 
reporting requirement for vessel masters or agents pursuant to existing 
statutes and regulations. See 8 U.S.C. 1103, 1182, 1221, 1281, 1282; 8 
CFR part 2; 19 U.S.C. 66, 1431, 1433, 1434, 1624, 2071 note; and 19 CFR 
part 4. The rule changes the format in which vessel masters or agents 
must present required information to CBP. Under the amended 
regulations, vessel masters or agents will no longer be required to 
complete and submit the paper Form I-418. Instead, all required 
information must be submitted to CBP electronically through the 
electronic data interchange system approved by CBP, which has been the 
practice for most vessel masters and agents by submitting the 
information through eNOA/D. This rule neither affects the substantive 
criteria by which CBP officers inspect vessels upon arrival or 
departure nor the nature of the information required by CBP.
    Although this procedural rule is exempt from prior notice and 
comments procedures, DHS is providing the public with the opportunity 
to comment without delaying implementation of this rule. DHS will 
respond to the comments received when it issues a final rule.

B. Executive Order 13563 (Improving Regulation and Regulatory Review) 
and Executive Order 12866 (Regulatory Planning and Review)

    Executive Orders 13563 (Improving Regulation and Regulatory Review) 
and 12866 (Regulatory Planning and Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility.
    The Office of Management and Budget (OMB) has designated this rule 
a ``significant regulatory action,'' although not economically 
significant, under section 3(f) of Executive Order 12866. Accordingly, 
the rule has been reviewed by OMB. CBP has also prepared a regulatory 
impact assessment to help inform stakeholders of the impacts of this 
rule, which CBP has summarized below. The complete standalone analysis 
can be found in the public docket for this rulemaking at http://www.regulations.gov. The standalone analysis also focuses on the costs 
and benefits experienced during the I-418 Automation test program 
period (FY 2011 through FY 2020).

[[Page 73625]]

1. Executive Summary
    Through the Automation of CBP Form I-418 for Vessels Interim Final 
Rule, CBP will amend its regulations under 8 CFR part 251, 8 CFR part 
258, and 19 CFR part 4 to require the electronic submission of the data 
elements required from vessel operators on Form I-418 in lieu of paper 
form submissions. CBP will no longer require the paper Form I-418. The 
updated regulations will require vessel operators to electronically 
submit the data elements required on the Form I-418 via an EDI approved 
by CBP. CBP will continue to use USCG's eNOA/D system as the approved 
EDI. Under this process, CBP systems will compile eNOA/D and other 
electronic manifest data submitted by vessel operators prior to arrival 
and at departure into a passenger and crew list format reflective of an 
electronic Form I-418.\16\ The act of electronically submitting the 
data elements required on Form I-418 will also constitute the (vessel) 
Master's certification that the manifest information is accurate,\17\ 
and eliminate the current need to generally collect Form I-418's vessel 
master (or operator) and CBP officer signatures for certification.\18\ 
CBP will also retain its authority to require paper Form I-418 
submissions in the event of certain technical difficulties, such as 
system outages and disruptions, that make it impossible to submit or 
receive manifest data electronically, and according to CBP 
discretion.\19\ This rule will streamline vessel arrival and departure 
processes by eliminating redundant data submissions, simplifying vessel 
inspections, and automating recordkeeping.
---------------------------------------------------------------------------

    \16\ The embark date required on Form I-418 is transmitted to 
CBP via eNOA/D. The disembark date/date separated (i.e., the date 
when a crewmember permanently departs the vessel) is calculated by 
CBP systems. This rule does not change this practice.
    \17\ This includes certifying that certification that CBP 
baggage declaration requirements have been made known to incoming 
passengers; that any required CBP baggage declarations have been or 
will simultaneously be filed as required by law and regulation with 
the proper CBP officer; that the responsibilities of the vessel 
operator have been or will be done as required by law or regulation 
before the proper CBP officer; and that there are no steerage 
passengers on board the vessel.
    \18\ CBP officer signatures are generally dictated on the form 
as a unique receipt number tied to the officer. For the purposes of 
this analysis, CBP refers to these receipt numbers as signatures.
    \19\ The Automation of CBP Form I-418 for Vessels Interim Final 
Rule describes particular exceptions to the electronic submission 
requirement. In particular, CBP will also retain its authority to 
require paper submissions in the event the master or agent of the 
vessel is unable to electronically submit the data elements required 
on Form I-418 via an electronic data interchange system approved by 
CBP due to technical issues, such as when the onboard computer 
system is malfunctioning or there is no internet access, and there 
is no shore-side support available; CBP is experiencing technical 
difficulties affecting its receipt or processing of electronically 
submitted information; or where CBP, in its discretion, determines 
that a paper Form I-418 is acceptable under the circumstances 
presented by the master or agent of a vessel.
---------------------------------------------------------------------------

    CBP is currently operating an I-418 Automation test program, which 
serves as the basis for the regulatory program. The impact of the I-418 
Automation regulatory program will slightly differ from the I-418 
Automation test program due to its complete paper Form I-418 
automation, eased administrative burdens, and elimination of signatures 
and paper processing. With its transition to a fully automated, 
electronic passenger and crew list (i.e., Form I-418) process, the I-
418 Automation regulatory program will discontinue the test program. 
Under the regulatory program, CBP systems will automatically reconcile 
eNOA/D and other manifest data submitted electronically by vessel 
operators prior to arrival and at departure into a passenger and crew 
list format reflective of an electronic Form I-418. This transition 
will affect commercial vessel operators and CBP.
    Vessel operators will generally not incur any costs from this rule, 
though CBP will. CBP will sustain technology and printing costs from 
the regulatory program, including costs to maintain mobile devices for 
real-time, electronic processing and print paper Form I-418s until the 
admissibility inspection process is completely paperless. Across the 
period of analysis, these monetized costs will equal $45,000 in present 
value and $12,000 on an annualized basis. These costs represent the 
total costs of the rule.
    Following this rule's implementation, vessel operators will enjoy 
$16.1 million in monetized present value cost savings from automated 
Form I-418 submissions and forgone printing and dual processing between 
FY 2021 and FY 2025 (using a 7 percent discount rate). During the same 
period, CBP will experience a total monetized present value cost saving 
of $37.2 million from the rule's forgone printing requirements, 
streamlined mobile processing and post-inspection tasks, and forgone 
storage and shipping costs (using a 7 percent discount rate). CBP may 
dedicate these cost savings to other agency mission areas, such as 
improving border security or facilitating trade. In total, the 
monetized cost savings of this rule will equal $53.3 million in present 
value and $13.9 million on an annualized basis over the period of 
analysis (using a 7 percent discount rate).
    The Executive Summary Table outlines the estimated costs and 
benefits (cost savings) of the I-418 Automation regulatory program from 
FY 2021 to FY 2025. As illustrated, the benefits (cost savings) of this 
rule outweigh its costs, with the total monetized net benefit (net cost 
saving) of the regulatory program measuring $53.3 million in present 
value and $13.9 million on an annualized basis (using a 7 percent 
discount rate).

   Executive Summary Table: Net Benefit (Cost Saving) of I-418 Automation Regulatory Program, FY 2021-FY 2025
                                               [2019 U.S. Dollars]
----------------------------------------------------------------------------------------------------------------
                                                          Present values                 Annualized values
                                                 ---------------------------------------------------------------
                                                    3% Discount     7% Discount     3% Discount     7% Discount
                                                       rate            rate            rate            rate
----------------------------------------------------------------------------------------------------------------
Total Cost......................................         $52,067         $45,458         $11,710         $11,863
Total Benefit...................................      62,546,086      53,306,084      14,066,940      13,910,918
                                                 ---------------------------------------------------------------
    Total Net Benefit...........................      62,494,018      53,260,626      14,055,230      13,899,055
----------------------------------------------------------------------------------------------------------------
Notes: The estimates in this table are contingent upon CBP's vessel arrival/departure projections as well as the
  discount rates applied. Estimates may not sum to total due to rounding.


[[Page 73626]]

2. Purpose of Rule
    Commercial vessels arriving at and departing from U.S. ports of 
entry (POEs) must comply with statutory and regulatory requirements to 
engage in U.S. trade. As previously mentioned, under current 
regulations commercial vessels, regardless of whether they are cargo, 
non-cargo,\20\ or cruise ships, traveling to U.S. POEs from a foreign 
port or place must begin their trip by submitting similar manifest 
information electronically to USCG through eNOA/D and APIS, and then 
submitting the same manifest data to CBP on the paper Form I-418. At 
departure, commercial vessels must submit similar departure data to 
USCG and CBP. Despite similarities in the vessel arrival and departure 
data submitted per Form I-418, APIS, and eNOA/D requirements, current 
regulations do not allow data to be transmitted electronically, such as 
through eNOA/D or email, to satisfy Form I-418's passenger and crew 
list submission requirement. In fact, failure to submit the arrival or 
departure manifest in paper format may result in fines and penalties. 
To reduce redundant data submissions and automate manifest 
recordkeeping, CBP launched the I-418 Automation test program in 2011. 
This test has allowed for the automated, electronic submission of the 
data elements on Form I-418 from test participants using manifest data 
previously submitted electronically to the NVMC through eNOA/D, APIS, 
or other means. Based on the successful operation of the test, CBP now 
intends to establish the automated, electronic Form I-418 data 
submission process by regulation.
---------------------------------------------------------------------------

    \20\ For the purposes of this analysis, non-cargo commercial 
vessels include all commercial vessels other than cargo ships and 
cruise ships. Tugboats fall under this classification.
---------------------------------------------------------------------------

    Through this rulemaking, CBP will amend its regulations under 8 CFR 
part 251, 8 CFR part 258, and 19 CFR part 4 to require the electronic 
submission of the data elements required from vessel operators on Form 
I-418 in lieu of paper form submissions. CBP will generally no longer 
require the paper Form I-418. The updated regulations will require 
vessel operators to electronically submit the data elements required on 
the Form I-418 via an EDI approved by CBP. CBP will continue to use the 
eNOA/D system as the approved EDI. Under this process, CBP systems will 
compile eNOA/D, APIS, and any other electronic manifest data submitted 
by vessel operators prior to arrival and at departure into a passenger 
and crew list format reflective of an electronic Form I-418.\21\ The 
act of electronically submitting the data elements required on Form I-
418 will also constitute the (vessel) Master's certification that the 
manifest information is accurate,\22\ and eliminate the current need to 
generally collect Form I-418's vessel master (or operator) and CBP 
officer signatures for certification.\23\ CBP will also retain its 
authority to require paper Form I-418 submissions in the event of 
certain technical difficulties, such as system outages and disruptions, 
that make it impossible to submit or receive manifest data 
electronically, and according to CBP discretion.\24\ This rule will 
streamline vessel arrival and departure processes by eliminating 
redundant data submissions, simplifying vessel inspections, and 
automating recordkeeping.
---------------------------------------------------------------------------

    \21\ The embark date required on Form I-418 is transmitted to 
CBP via eNOA/D. The disembark date/date separated (i.e., the date 
when a crewmember permanently departs the vessel) is calculated by 
CBP systems. This rule does not change this practice.
    \22\ This includes certifying that certification that CBP 
baggage declaration requirements have been made known to incoming 
passengers; that any required CBP baggage declarations have been or 
will simultaneously be filed as required by law and regulation with 
the proper CBP officer; that the responsibilities of the vessel 
operator have been or will be done as required by law or regulation 
before the proper CBP officer; and that there are no steerage 
passengers on board the vessel.
    \23\ CBP officer signatures are generally dictated on the form 
as a unique receipt number tied to the officer. For the purposes of 
this analysis, CBP refers to these receipt numbers as signatures.
    \24\ As described above, CBP will retain its authority to 
require paper submissions in the event the master or agent of the 
vessel is unable to electronically submit the data elements required 
on Form I-418 via an electronic data interchange system approved by 
CBP due to technical issues, such as when the onboard computer 
system is malfunctioning or there is no internet access, and there 
is no shore-side support available; CBP is experiencing technical 
difficulties affecting its receipt or processing of electronically 
submitted information; or where CBP, in its discretion, determines 
that a paper Form I-418 is acceptable under the circumstances 
presented by the master or agent of a vessel.
---------------------------------------------------------------------------

3. Population Affected by Rule
    This rule will affect commercial vessel operators and CBP, though 
at different magnitudes according to the arriving vessel type and I-418 
Automation test program participation during the period of analysis 
spanning from FY 2021 to FY 2025. To determine the extent of the 
population affected by this rule, CBP relies on historical commercial 
vessel arrivals/departures and test participation data.
    From FY 2015 to FY 2019, cargo and non-cargo vessel arrivals/
departures of I-418 Automation test program participants grew at a 
compound annual rate of 6.0 percent while non-participant cargo and 
non-cargo vessel arrivals/departures declined at a compound annual rate 
of 1.9 percent. During the same period, participant and non-participant 
cruise ship arrivals/departures both grew at a compound annual rate of 
2.4 percent (see Table 1). In the future, CBP projects that commercial 
vessel arrivals/departures will remain consistent with their more 
conservative historical trends prior to the COVID-19 pandemic beginning 
in 2020. Accordingly, CBP estimates that future cargo and non-cargo 
vessel arrivals/departures of I-418 Automation test program 
participants will increase increasing at a rate of 6.0 percent per 
year, non-participant cargo and non-cargo vessel arrivals/departures 
will decrease at a rate of 1.9 percent per year, and all cruise ship 
arrivals/departures will increase at a rate of 2.4 percent per year 
from their FY 2019 values between FY 2021 and FY 2025.\25\ CBP believes 
that these projections best represent the normal, recent growth of 
commercial vessel arrivals/departures while still accounting for the 
projected economic and travel slowdowns due to the COVID-19 pandemic. 
CBP did not use FY 2020 data as a basis for future growth because it 
exhibits extreme, abnormal drops in vessel arrivals/departures due to 
the COVID-19 pandemic beginning during that year.

[[Page 73627]]

However, CBP recognizes the uncertainty in this assumption and that the 
rate of economic recovery from the COVID-19 pandemic will depend on 
many factors, including how quickly businesses can recover, rates of 
infection, and global supply chains. CBP does not believe that this 
rule will directly affect the volume of future commercial vessel 
arrivals/departures, and thus predicts that the projected arrivals/
departures will be the same with and without this rule's implementation 
(i.e., the baseline).
---------------------------------------------------------------------------

    \25\ Based on historical commercial vessel data and future 
commercial vessel demand outlooks. For future cargo and non-cargo 
vessel outlook information, see: Pallis, Athanasios A, et al. 
Transport and Trade Facilitation: COVID-19 and Maritime Transport 
Impact and Responses, United Nations Conference on Trade and 
Development (UNCTAD), Series No. 15, March 2021. Available at 
https://unctad.org/system/files/official-document/dtltlb2021d1_en.pdf. Accessed July 23, 2021; World Bank Group. 
Global Economic Prospects. Chpt. 1. World Bank Group Publishing. 
June 2021. Available at https://openknowledge.worldbank.org/bitstream/handle/10986/35647/9781464816659-ch01.pdf. Accessed July 
23, 2020; ``Moody's: Outlook for US public ports revised to stable 
on strengthening economic activity, improving cargo volumes.'' 
Moody's Investors Service, December 7, 2020. Available at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1247050. 
Accessed July 23, 2021; Ohse, Friedemann. ``Will 2021 bring about 
recovery for the global maritime industry?'' OceanInsights, 
September 30, 2020. Available at https://www.ocean-insights.com/business-news/will-2021-bring-about-recovery-for-the-global-maritime-industry/?cli_action=1602257398.7141/8. Accessed October 9, 
2020. For future cruise ship outlook information, see: Giese, 
Monique. ``COVID-19 Impacts on Cruise Industry.'' KPMG, July 23, 
2020. Available at https://home.kpmg/xx/en/blogs/home/posts/2020/07/covid-19-impacts-on-global-cruise-industry.html. Accessed October 
23, 2020; McMahon, Shannon. ``5 takeaways from the cruise industry's 
report on a return to sailing.'' Washington Post, September 21, 
2020. Available at https://www.washingtonpost.com/travel/2020/09/21/cruise-return-report-covid-19/. Accessed October 23, 2020.
---------------------------------------------------------------------------

    To estimate future commercial vessel arrivals/departures with and 
without this rule, CBP first applies the projected growth rates for 
cargo and non-cargo vessel arrivals/departures of I-418 Automation test 
program participants and non-participants (6.0 percent and 1.9 percent, 
respectively) and cruise ship arrivals/departures (2.4 percent) to 
their respective FY 2019 values (see Table 1). CBP then projects the 
estimates forward through the period of analysis, FY 2021 to FY 2025. 
When making such projections, CBP presumes that the I-418 Automation 
test program will continue to exist during the period of analysis in 
the absence of any rulemaking to automate the Form I-418 process. In 
contrast, the test program will transition into a regulatory program in 
which all commercial vessel operators participate in an automated Form 
I-418 data submission process upon this rule's implementation.
    As previously stated, CBP does not believe that this rule will 
directly affect the future volume of commercial vessel arrivals/
departures, and thus predicts that future commercial vessel arrivals/
departures will be the same with and without this rule's implementation 
(i.e., the baseline). As Table 1 shows, CBP estimates that almost 
424,000 commercial vessel arrivals/departures will occur between FY 
2021 and FY 2025, including 372,000 cargo and non-cargo vessel 
arrivals/departures and 53,000 cruise ship arrivals/departures. Nearly 
98,000 (23 percent) of these arrivals/departures will correspond to 
former (or ongoing in the absence of this rule) I-418 Automation test 
program participants, while the remaining 326,000 (77 percent) will 
correspond to non-former I-418 Automation test program participants (or 
non-test participants in the absence of this rule). Nearly all of these 
vessel operators will be affected by the rule. Of the arrivals/
departures of former (or ongoing) I-418 Automation test program 
participants, CBP estimates that 50 percent will correspond to 
participants who fully participated in the test program and the 
remainder will correspond to participants who only partially 
participated (see Table 1). According to field interviews, the majority 
of vessel operators participating in the I-418 Automation test program 
continued to provide a paper Form I-418 upon arrival/departure despite 
having submitted an electronic Form I-418 to ensure full compliance 
with CBP regulations.\26\ For the purposes of this analysis, CBP refers 
to these vessel operators as those who partially participated in the I-
418 Automation test program. Under the baseline, non-I-418 Automation 
test program participants and 50 percent of test program participants 
will continue to submit paper Form I-418s with each projected arrival/
departure, while the remaining test participants will submit only 
automated versions of Form I-418 with each future arrival/departure. 
Alternatively, with the rule, each arrival/departure will presumably 
result in an automated Form I-418 submission.
---------------------------------------------------------------------------

    \26\ Although the I-418 Automation test program waived the 
regulatory requirement to submit Form I-418s by paper, certain test 
participants insisted on submitting paper Form I-418s to ensure full 
compliance with CBP regulations. Source: Email correspondence with 
CBP's Office of Field Operations on February 23, 2016.

                                                                  Table 1--Projected Commercial Vessel Arrivals and Departures
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       FY 2019*           FY 2021           FY 2022           FY 2023           FY 2024           FY 2025      Total, FY 2021-FY
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------        2025
                                                                                                                                                                              ------------------
                                                                   Cargo &           Cargo &           Cargo &           Cargo &           Cargo &           Cargo &            Cargo &
                            Number of                                non-    Cruise    non-    Cruise    non-    Cruise    non-    Cruise    non-    Cruise    non-    Cruise    non-     Cruise
                                                                    cargo    ships    cargo    ships    cargo    ships    cargo    ships    cargo    ships    cargo    ships     cargo    ships
                                                                   vessels           vessels           vessels           vessels           vessels           vessels            vessels
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Non-I-418 Automation Test Program Participants
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Growth in Vessel Arrivals/Departures.............................  .......  .......    -1.9%     2.4%    -1.9%     2.4%    -1.9%     2.4%    -1.9%     2.4%    -1.9%     2.4%  ........  .......
Vessel Arrivals/Departures.......................................   64,155    4,319   62,936    4,423   61,740    4,529   60,567    4,638   59,416    4,749   58,287    4,863   302,946   23,202
Form I-418 Submissions...........................................   64,155    4,319   62,936    4,423   61,740    4,529   60,567    4,638   59,416    4,749   58,287    4,863   302,946   23,202
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           I-418 Automation Test Program Participants
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Growth in Vessel Arrivals/Departures.............................  .......  .......     6.0%     2.4%     6.0%     2.4%     6.0%     2.4%     6.0%     2.4%     6.0%     2.4%  ........  .......
Total Vessel Arrivals/Departures.................................   11,487    5,496   12,176    5,628   12,907    5,763   13,681    5,901   14,502    6,043   15,372    6,188    68,638   29,523
    Vessel Arrivals/Departures of Participants Fully                 5,744    2,748    6,088    2,814    6,454    2,882    6,841    2,951    7,251    3,022    7,686    3,094    34,320   14,763
     Participating in Test.......................................
    Vessel Arrivals/Departures of Participants Partially             5,743    2,748    6,088    2,814    6,453    2,881    6,840    2,950    7,251    3,021    7,686    3,094    34,318   14,760
     Participating in Test.......................................
Total Form I-418 Submissions \+\.................................   11,487    5,496   12,176    5,628   12,907    5,763   13,681    5,901   14,502    6,043   15,372    6,188    68,638   29,523
    Form I-418 Submissions from Participants Fully Participating     5,744    2,748    6,088    2,814    6,454    2,882    6,841    2,951    7,251    3,022    7,686    3,094    34,320   14,763
     in Test.....................................................
    Form I-418 Submissions from Participants Partially               5,743    2,748    6,088    2,814    6,453    2,881    6,840    2,950    7,251    3,021    7,686    3,094    34,318   14,760
     Participating in Test.......................................
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                              Total
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Vessel Arrivals/Departures.......................................   75,642    9,815   75,112   10,051   74,647   10,292   74,248   10,539   73,918   10,792   73,659   11,051   371,584   52,725
Form I-418 Submissions...........................................   75,642    9,815   75,112   10,051   74,647   10,292   74,248   10,539   73,918   10,792   73,659   11,051   371,584   52,725
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* Not in period of analysis.
\+\ Form I-418s submitted in both electronic and paper format only counted as one form submission.
Note: Estimates may not sum to total due to rounding.

4. Costs of Rule
    This rule will automate the Form I-418 process for all commercial 
vessel operators and eliminate the regulatory guidelines in place 
regarding the submission and retention of paper Form I-418s. These 
changes will generally not introduce new costs to commercial vessel 
operators, but they will introduce some costs to CBP. If vessel 
operators request a copy of their stamped and annotated electronic Form 
I-418, which they receive by paper now for CBP processing, they will 
incur negligible

[[Page 73628]]

costs to do so.\27\ CBP will sustain technology and printing costs from 
the Form I-418 Automation regulatory program, including costs to 
maintain mobile devices for real-time, electronic processing, and to 
print the paper Form I-418 until the admissibility inspection process 
is completely paperless. Across the period of analysis, these monetized 
costs will equal $46,000 in present value and $12,000 on an annualized 
basis (using a 7 percent discount rate). These costs represent the 
total costs of the rule, as illustrated in Table 2.
---------------------------------------------------------------------------

    \27\ Source: Correspondence with CBP's Office of Field 
Operations on November 24, 2020.

    Table 2--Total Present Value and Annualized Costs of I-418 Automation Regulatory Program, FY 2020-FY 2024
                                               [2019 U.S. Dollars]
----------------------------------------------------------------------------------------------------------------
                                                                           3% Discount rate    7% Discount rate
----------------------------------------------------------------------------------------------------------------
Present Value Cost......................................................             $52,067             $45,458
Annualized Cost.........................................................              11,710              11,863
----------------------------------------------------------------------------------------------------------------
Note: The estimates in this table are contingent upon CBP's vessel arrival/departure projections as well as the
  discount rates applied.

5. Benefits (Cost Savings) of Rule
    Besides its costs to CBP, this rule will provide considerable 
benefits (cost savings) to vessel operators and CBP. Following this 
rule's implementation, vessel operators will enjoy $16.1 million in 
monetized present value cost savings from forgone paper Form I-418 
submissions and form printing between FY 2021 and FY 2025 (using a 7 
percent discount rate). During the same period, CBP will experience a 
total monetized present value cost saving of $37.2 million from the 
rule's avoided printing, streamlined mobile post-inspection processing 
and electronic recordkeeping (using a 7 percent discount rate). CBP may 
dedicate these cost savings to other agency mission areas, such as 
improving border security or facilitating trade. In total, the 
monetized cost savings of this rule will equal $53.3 million in present 
value and $13.9 million on an annualized basis over the period of 
analysis (using a 7 percent discount rate; see Table 3).

  Table 3--Total Present Value and Annualized Benefits (Cost Savings) of I-418 Automation Regulatory Program FY
                                                  2020-FY 2024
                                               [2019 U.S. Dollars]
----------------------------------------------------------------------------------------------------------------
                                                                           3% Discount rate    7% Discount rate
----------------------------------------------------------------------------------------------------------------
Present Value Benefit...................................................         $62,546,086         $53,306,084
Annualized Benefit......................................................          14,066,940          13,910,918
----------------------------------------------------------------------------------------------------------------
Note: The estimates in this table are contingent upon CBP's vessel arrival/departure projections as well as the
  discount rates applied.

6. Net Impact of Rule
    Table 4 summarizes the monetized costs and benefits (cost savings) 
of the I-418 Automation regulatory program to vessel operators and CBP 
from FY 2021 to FY 2025. As illustrated, the savings from this rule 
outweigh its costs, with the total monetized net cost saving of the 
regulatory program measuring $53.3 million in present value and $13.9 
million on an annualized basis (using a 7 percent discount rate).

           Table 4--Net Benefit (Cost Saving) of I-418 Automation Regulatory Program, FY 2020-FY 2024
                                               [2019 U.S. Dollars]
----------------------------------------------------------------------------------------------------------------
                                                          Present values                 Annualized values
                                                 ---------------------------------------------------------------
                                                    3% Discount     7% Discount     3% Discount     7% Discount
                                                       rate            rate            rate            rate
----------------------------------------------------------------------------------------------------------------
Total Cost......................................         $52,067         $45,458         $11,710         $11,863
Total Benefit...................................      62,546,086      53,306,084      14,066,940      13,910,918
                                                 ---------------------------------------------------------------
    Total Net Benefit...........................      62,494,018      53,260,626      14,055,230      13,899,055
----------------------------------------------------------------------------------------------------------------
Notes: The estimates in this table are contingent upon CBP's vessel arrival/departure projections as well as the
  discount rates applied. Estimates may not sum to total due to rounding.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended 
by the Small Business Regulatory Enforcement and Fairness Act of 1996, 
requires an agency to prepare and make available to the public a 
regulatory flexibility analysis that describes the effect of a proposed 
rule on small entities (i.e., small businesses, small organizations, 
and small governmental jurisdictions) when the agency is required to 
publish a general notice of proposed rulemaking for a rule. Since a 
general notice of proposed rulemaking is not necessary for this rule, 
CBP is not required to prepare a regulatory flexibility analysis for 
this rule.

[[Page 73629]]

D. Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by State, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995.

E. Executive Order 13132

    This rule will not have substantial direct effects on the States, 
on the relationship between the National Government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. Therefore, in accordance with section 6 of 
Executive Order 13132, DHS has determined that this final rule does not 
have sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement.

F. Executive Order 12988 Civil Justice Reform

    This rule meets the applicable standards set forth in sections 3(a) 
and 3(b)(2) of Executive Order 12988. Executive Order 12988 requires 
agencies to conduct reviews on civil justice and litigation impact 
issues before proposing legislation or issuing proposed regulations. 
The order requires agencies to exert reasonable efforts to ensure that 
the regulation identifies clearly preemptive effects, effects on 
existing federal laws or regulations, identifies any retroactive 
effects of the regulation, and other matters. DHS has determined that 
this regulation meets the requirements of Executive Order 12988 because 
it does not involve retroactive effects, preemptive effects, or the 
other matters addressed in the Executive Order.

G. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507), an agency may not conduct, and a person is not required to 
respond to, a collection of information unless the collection of 
information displays a valid control number assigned by OMB. The Form 
I-418 information collected under 8 CFR part 251.1 and 8 CFR part 251.3 
is included under OMB control number 1651-0103. Under the Automation of 
CBP Form I-418 for Vessels rule, CBP systems will automatically 
reconcile eNOA/D, APIS, and any other manifest data submitted 
electronically by vessel operators prior to arrival and at departure to 
create an electronic version of Form I-418. CBP will use the automated, 
electronic Form I-418 for all commercial vessel crew and passenger 
admissibility inspections and processing, and thus generally establish 
a completely paperless Form I-418 process for all commercial vessel 
arrivals and departures. CBP plans to retain the paper Form I-418 and 
conduct paper Form I-418 processing only when the master or agent of 
the vessel is unable to electronically submit the data elements 
required on Form I-418 via an electronic data interchange system 
approved by CBP due to technical issues, such as when the onboard 
computer system is malfunctioning or there is no internet access, and 
there is no shore-side support available; CBP is experiencing technical 
difficulties affecting its receipt or processing of electronically 
submitted information; or where CBP, in its discretion, determines that 
a paper Form I-418 is acceptable under the circumstances presented by 
the master or agent of a vessel. CBP will conduct such processing to 
not hinder, stop, or otherwise penalize maritime traffic. In accordance 
with the OMB Notice of Action dated April 3, 2018, CBP will submit a 
discontinuation request for OMB control number 1651-0103 along with 
this rule's publication because this information collection is 
duplicative.

H. Privacy Interests

    DHS will ensure that all Privacy Act requirements and policies are 
adhered to in the implementation of this rule, and will issue or update 
any necessary Privacy Impact Assessment and/or Privacy Act System of 
Records notice to fully outline processes that will ensure compliance 
with Privacy Act protections.

List of Subjects

8 CFR Part 251

    Air carriers, Airmen, Aliens, Maritime carriers, Reporting and 
recordkeeping requirements, Seamen.

8 CFR Part 258

    Aliens, Longshore and harbor workers, Reporting and recordkeeping 
requirements, Seamen.

19 CFR Part 4

    Exports, Freight, Harbors, Maritime carriers, Oil pollution, 
Reporting and recordkeeping requirements, Vessels.

Amendments to the Regulations

    For the reasons stated in the preamble, DHS is amending 8 CFR parts 
251 and 258, and 19 CFR part 4, as set forth below.

TITLE 8--ALIENS AND NATIONALITY

PART 251--ARRIVAL AND DEPARTURE MANIFESTS AND LISTS: SUPPORTING 
DOCUMENTS

0
1. The general authority citation for part 251 continues to read as 
follows:

    Authority: 8 U.S.C. 1103, 1182, 1221, 1281, 1282, 8 CFR part 2.


Sec.  251.1  [Amended]

0
2. Amend Sec.  251.1 as follows:
0
a. Revise paragraph (a)(1);
0
b. Revise paragraph (a)(2) introductory text;
0
c. In paragraph (a)(2)(i), remove the word ``notation'' and add in its 
place ``information'';
0
d. In paragraph (a)(2)(ii) introductory text, remove the words ``shall 
note'' and adding in their place ``must indicate'';
0
e. In paragraph (a)(2)(iii)(A), remove the words ``shall note on'' and 
adding in their place ``must indicate in'';
0
f. In paragraph (a)(2)(iii)(B):
0
i. Remove the words ``shall note on'' and add in their place ``must 
indicate in''; and
0
ii. Remove the the words ``shall show'' and add in their place ``must 
show'';
0
g. In paragraph (a)(2)(iv) introductory text:
0
i. In the first sentence remove the words ``shall note on'' and add in 
their place ``must indicate in''; and
0
ii. In the second sentence, remove the words ``shall note'' and add in 
their place ``must indicate'';
0
h. In paragraph (a)(2)(v):
0
i. Remove the words ``shall note on'' and add in their place ``must 
indicate in''; and
0
ii. Remove the words ``will note the'' and add in their place ``will 
indicate the'';
0
i. In paragraph (a)(3)(i) introductory text, remove the words ``shall 
not be'' and add in its place ``is not'';
0
j. In paragraph (a)(3)(ii), remove the words ``shall note the manifest 
in the manner'' and add in their place ``must follow the 
instructions'';
0
k. In paragraph (a)(3)(iii):
0
i. Remove the words ``shall not be'' and adding in their place ``is 
not''; and
0
ii. remove the words ``noted on'' and add in their place ``indicated 
in'';
0
l. In paragraph (a)(4), remove the words ``shall annotate Form I-418 
presented at the onward port to indicate'' and add in their place 
``must electronically submit via an electronic data interchange system 
approved by CBP'';
0
m. In paragraph (a)(5), remove the words ``accompany the manifest'' and 
add in their place ``be sent to CBP

[[Page 73630]]

electronically or be presented to CBP upon arrival at the port of 
immigration inspection'';
0
n. Add paragraph (a)(6);
0
o. In paragraph (b):
0
i. Remove the word ``shall'' wherever it appears and add in its place 
``must'';
0
ii. Remove the words ``United States Customs Service'' and add in their 
place ``CBP''; and
0
iii. Remove the word ``annotate'' and add in its place ``electronically 
update the data in'';
0
p. In paragraph (c), remove the word ``shall'' and add in its place 
``must''.
    The revisions and addition read as follows:


Sec.  251.1  Arrival manifests and lists.

    (a) * * * (1) General. Except as provided in paragraph (a)(6) of 
this section, the master or agent of every vessel arriving in the 
United States from a foreign place or an outlying possession of the 
United States must submit a manifest of all crewmen on board by 
electronically submitting the data elements required on CBP Form I-418, 
Passenger List--Crew List, via an electronic data interchange system 
approved by CBP.
    (2) Longshore work information. Except as provided in paragraph 
(a)(6) of this section, the master or agent of the vessel must 
electronically submit via an electronic data interchange system 
approved by CBP an affirmation as to whether crewmen aboard the vessel 
will be used to perform longshore work at any United States port before 
the vessel departs the United States.
* * * * *
    (6) Exception to the requirement to submit Form I-418 data elements 
and longshore work information electronically. The master or agent of 
any vessel that is arriving in the United States from a foreign place 
or an outlying possession of the United States, and is required to 
submit a manifest, may submit a paper Form I-418 to CBP upon arrival at 
the port where immigration inspection is performed when:
    (i) The master or agent of the vessel is unable to electronically 
submit the data elements required on Form I-418 via an electronic data 
interchange system approved by CBP because there is no internet access 
in that location or onboard computers are experiencing technical 
difficulties, and there is no shore-side support available; or
    (ii) CBP is experiencing technical difficulties affecting its 
receipt or processing of electronically submitted information, or, in 
its discretion, CBP determines that a paper Form I-418 is acceptable 
under the circumstances presented by the master or agent of a vessel.
* * * * *

0
3. Amend Sec.  251.3 by:
0
a. Revising paragraph (a); and
0
b. Adding a new paragraph (c);
    The revision and addition read as follows:


Sec.  251.3  Departure manifests and lists for vessels.

    (a) Form I-418, Passenger List-Crew List. Except as provided in 
paragraphs (b) and (c) of this section, the master or agent of every 
vessel departing from the United States directly to some foreign place 
or outlying possession of the United States must electronically submit 
the data elements required on Form I-418 via an electronic data 
interchange system approved by CBP, except when a manifest is not 
required pursuant to section 251.1(a). Submission of inaccurate or 
incomplete data will be regarded as lack of compliance with section 
251(c) of the Act.
* * * * *
    (c) Exception to the requirement to submit Form I-418 data elements 
electronically. The master or agent of any vessel that is departing 
from the United States directly to some foreign place or outlying 
possession of the United States, and is required to submit a manifest, 
may submit a paper Form I-418 to CBP at the port from which such vessel 
is to depart when:
    (1) The master or agent of the vessel is unable to submit the data 
elements required on Form I-418 electronically via an electronic data 
interchange system approved by CBP because there is no internet access 
in that location or onboard computers are experiencing technical 
difficulties, and there is no shore-side support available; or
    (2) CBP is experiencing technical difficulties affecting its 
receipt or processing of electronically submitted information, or, in 
its discretion, CBP determines that a paper Form I-418 is acceptable 
under the circumstances presented by the master or agent of a vessel.

0
4. Amend Sec.  251.5 as follows:
0
a. Revise the section heading; and
0
b. Remove the words ``in a paper format''.
    The revision reads as follows:


Sec.  251.5  Arrival and departure manifests for crew.

* * * * *

PART 258--LIMITATIONS ON PERFORMANCE OF LONGSHORE WORK BY ALIEN 
CREWMEN

0
5. The general authority citation for part 258 continues to read as 
follows:

    Authority: 8 U.S.C. 1101, 1103, 1281; 8 CFR part 2.


Sec.  258.2  [Amended]

0
6. Amend Sec.  258.2 as follows:
0
a. In the introductory text, remove the words ``shall note'' and add in 
their place ``must indicate'';
0
b. In paragraph (a)(2), remove the words ``shall note on'' and add in 
their place ``must indicate in'';
0
c. In paragraph (b)(2)(i), remove the words ``states on the manifest, 
Form I-418,'' and add in their place ``indicates in the manifest, or on 
Form I-418 if submitting the paper version,'';
0
d. In paragraph (b)(2)(ii):
0
i. Remove the words ``states on'' and add in their place ``indicates 
in''; and
0
ii. Remove the words ``shall present'' and add in their place ``must 
present'';
0
e. In paragraph (b)(2)(iii)(A), remove the word ``shall'' and add in 
its place ``must'';
0
f. In paragraph (b)(2)(iii)(B):
0
i. Remove the word ``shall'' and add in its place ``must''; and
0
ii. Remove the words ``Immigration and Naturalization Service'' and add 
in their place ``CBP'';
0
g. In paragraph (b)(2)(iv);
0
i. In the first sentence, remove the words ``states on'' and add in 
their place ``indicates in'';
0
ii. In the second sentence, remove the word shall and add in its place 
``must'' and remove the words ``shall note on'' and add in their place 
``must indicate in'';
0
h. In paragraph (b)(3), in the third sentence, remove the words ``shall 
annotate'' and add in their place ``must indicate in'';
0
i. In paragraph (b)(4):
0
i. In the first sentence, remove the words ``the Immigration and 
Naturalization Service'' wherever they appear, and add in their place 
``CBP'' and remove ``258(c)(E)(i)'' and add ``258(c)(4)(E)(i)'' in its 
place; and
0
ii. In the second sentence, remove the words ``The Service'' and add in 
their place ``CBP''; and
0
j. In paragraph (e):
0
i. In the first sentence, remove the word ``shall'' and add in its 
place ``must''; and
0
ii. In the second sentence, remove ``noted on the Form I-410'' and add 
in its place ``indicated on the electronically populated, or in the 
circumstances specified in section 251.1 of this chapter, paper, Form 
I-418''.

[[Page 73631]]

TITLE 19--CUSTOMS DUTIES

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

0
7. The general authority citation for part 4 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624, 
2071 note; 46 U.S.C. 501, 60105.


0
8. Amend Sec.  4.7 by revising paragraph (a) to read as follows:


Sec.  4.7.  Inward foreign manifest; production on demand; contents and 
form; advance filing of cargo declaration.

    (a) The master of every vessel arriving in the United States and 
required to make entry must have on board the vessel a manifest, as 
required by section 431, Tariff Act of 1930 (19 U.S.C. 1431), and by 
this section. The manifest must be legible and complete. If it is in a 
foreign language, an English translation must be furnished with the 
original and with any required copies. The required manifest consists 
of a Vessel Entrance or Clearance Statement, CBP Form 1300, and the 
following documents: (1) Cargo Declaration, CBP Form 1302, (2) Ship's 
Stores Declaration, CBP Form 1303, and (3) Crew's Effects Declaration, 
CBP Form 1304, to which are attached crewmembers' declarations on CBP 
Form 5129, if the articles will be landed in the United States. Unless 
the exception at 8 CFR 251.1(a)(6) applies and a paper form is 
submitted, the master must also electronically submit the data elements 
required on CBP Form I-418 via an electronic data interchange system 
approved by CBP, which will be considered part of the manifest. Any 
document which is not required may be omitted from the manifest 
provided the word ``None'' is inserted in items 16, 18, and/or 19 of 
the Vessel Entrance or Clearance Statement, as appropriate. If a vessel 
arrives in ballast and therefore the Cargo Declaration is omitted, the 
legend ``No merchandise on board'' must be inserted in item 16 of the 
Vessel Entrance or Clearance Statement.
* * * * *

0
9. Amend Sec.  4.7a as follows:
0
a. Remove paragraph (b)(2);
0
b. Redesignate paragraphs (b)(3) and (b)(4) as paragraphs (b)(2) and 
(b)(3), respectively;
0
c. Add paragraph (c)(5);
0
d. In paragraph (d), add the words ``Sec.  4.7b and with'' after ``in 
accordance with''; and
0
e. Revise paragraph (e).
    The addition and revision read as follows:


Sec.  4.7a.  Inward manifest; information required; alternative forms.

* * * * *
    (c) * * *
    (5) Unaccompanied baggage must be listed on CBP Form 1302, or 
transmitted via an electronic data interchange system approved by CBP.
* * * * *
    (e) Passenger List. (1) The Passenger List must be completed in 
accordance with Sec.  4.7b, Sec.  4.50, and with the requirements of 
applicable DHS regulations administered by CBP (8 CFR part 231).
* * * * *

0
10. Amend Sec.  4.50 as follows:
0
a. In paragraph (a), remove the second sentence;
0
b. Add paragraph (c).
    The addition reads as follows:


Sec.  4.50  Passenger lists.

* * * * *
    (c) By the act of submitting the data elements required on CBP Form 
I-418 via an electronic data interchange system approved by CBP, the 
master certifies that CBP baggage declaration requirements have been 
made known to incoming passengers; that any required CBP baggage 
declarations have been or will simultaneously be filed as required by 
law and regulation with the proper CBP officer; that the 
responsibilities of the vessel operator have been or will be done as 
required by law or regulation before the proper CBP officer; and that 
there are no steerage passengers on board the vessel.


Sec.  4.81  [Amended]

0
11. In Sec.  4.81, amend paragraph (d) by removing the phrase``, or 
Customs and Immigration Form I-418 with attached Customs Form 5129,''.

0
12. In Sec.  4.85 amend paragraph (c)(1) by:
0
a. In the third sentence, removing the words ``a Passenger List, 
Customs and Immigration Form I-418, in such number of copies as may be 
required for local Customs purposes, of any cargo or passengers on 
board manifested for discharge at that port,''; and
0
b. Adding a sentence following the third sentence.
    The addition reads as follows:


Sec.  4.85  Vessels with residue cargo for domestic ports.

* * * * *
    (c) * * *
    (1) * * * The master must also update the data elements required on 
CBP Form I-418 that were electronically submitted via an electronic 
data interchange system approved by CBP for any passengers on board 
that are manifested for discharge at that port. * * *
* * * * *


Sec.  4.91  [Amended]

0
13. In Sec.  4.91 amend paragraph (c) by removing, in the second 
sentence, the words ``Passenger List, Customs and Immigration Form I-
418'' and adding in their place ``updated data elements required on CBP 
Form I-418 that were submitted electronically via an electronic data 
interchange system approved by CBP''

Alejandro N. Mayorkas,
Secretary, U.S. Department of Homeland Security.
[FR Doc. 2021-27571 Filed 12-27-21; 8:45 am]
BILLING CODE 9111-14-P