Vessel Entrance and Clearance Automation Test, 70850-70855 [2022-25284]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• U.S. Customs and Border Protection

[Federal Register Volume 87, Number 223 (Monday, November 21, 2022)]
[Notices]
[Pages 70850-70855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25284]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Vessel Entrance and Clearance Automation Test

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

ACTION: General notice.

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SUMMARY: This document announces that U.S. Customs and Border 
Protection (CBP) will conduct the Vessel Entrance and Clearance 
Automation Test. This test will allow participants to submit certain 
vessel entry and clearance data and requests to CBP electronically 
through the Vessel Entrance and Clearance System (VECS), instead of 
submitting paper forms, as currently required by CBP regulations. 
Specifically, this test will allow participants to submit the data 
required on CBP Forms 26, 226, 1300, 1302, 1303, 1304, and 3171 
electronically through VECS prior to arrival or departure from 
designated ports. This notice describes the test, sets forth the 
eligibility requirements for participation, and invites public comment 
on any aspect of the test.

DATES: The test will begin at the Port of Gulfport in Gulfport, 
Mississippi, no earlier than December 21, 2022 and will continue for 24 
months from the date the test begins. During the 24 months, additional 
ports will be designated as test ports, and CBP will announce the 
additional ports participating in the test on its website. Comments 
concerning this notice and all aspects of the announced test may be 
submitted at any time during the test period.

ADDRESSES: Written comments concerning any aspect of the test should be 
submitted via email to Brian Sale, Branch Chief, Cargo and Conveyance 
Security, Manifest Conveyance and Security Division, Office of Field 
Operations, U.S. Customs and Border Protection, at [email protected]. In the subject line of the email, please 
write ``Comments on Vessel Entrance and Clearance Automation Test.''

FOR FURTHER INFORMATION CONTACT: Brian Sale, Branch Chief, Cargo and 
Conveyance Security, Manifest Conveyance and Security Division, Office 
of Field Operations, U.S. Customs & Border Protection; [email protected].

SUPPLEMENTARY INFORMATION:

I. Background and Purpose of the Test

A. Purpose of the Test

    U.S. Customs and Border Protection (CBP) regulations generally 
require that the master or vessel agent \1\ of a commercial vessel 
submit certain arrival, entrance, and clearance data to CBP when 
traveling to and from U.S. ports of entry. See part 4 of title 19 of 
the Code of Federal Regulations (19 CFR part 4). The vessel agent must 
generally submit this data to CBP on paper forms. Some of the data 
collected through these forms is redundant or already available to CBP 
through other required data submission platforms, such as data required 
by the applicable U.S. Coast Guard (USCG) regulations. See 33 CFR 
160.201-216.
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    \1\ For the purposes of this document, ``vessel agent'' may 
include a vessel master or commanding officer, authorized agent, 
operator, owner, consignee, or a third party contracted by the owner 
or operator of the vessel to prepare and submit Entrance and 
Clearance documentation to CBP on behalf of the vessel owner or 
operator.
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    Executive Order 13659, ``Streamlining the Export/Import Process for 
America's Businesses,'' signed in February 2014, requires the U.S. 
Government to streamline the export/import process for America's 
businesses by increasing efforts to improve technologies, policies, and 
other controls governing the movement of goods across U.S. borders. In 
support of this Executive Order, as well as in response to requests 
from the trade industry, CBP is developing a web-based system that will 
allow for the partial automation and electronic filing of many of its 
paper-based commercial vessel arrival, entrance, and clearance data 
collections. The Vessel Entrance and Clearance Automation Test (``the 
Test'') will allow CBP to test this system. The Test will also fulfill 
CBP's aims to improve service delivery and customer experience, by 
reducing paperwork burdens and promoting greater efficiency with 
respect to the submission of vessel entry and clearance forms.
    Specifically, the Test will allow participants to electronically 
submit to CBP, through the Vessel Entrance and Clearance System (VECS), 
when seeking to enter into or depart from a designated port, the 
entrance and clearance data that is currently collected on CBP Form 
1300: Vessel Entrance or Clearance Statement; CBP Form 1302: Inward 
Cargo Declaration; CBP Form 1303: Ship's Stores Declarations; CBP Form 
1304: Crew's Effects Declaration; CBP Form 3171: Application-Permit-
Special-License-Unlading-Lading-Overtime Services; CBP Form 26: Report 
of Diversion; and CBP Form 226: Record of Vessel Foreign Repair or 
Equipment Purchase. The Test will also allow participants to make 
certain entry and clearance requests and reports. Additionally, the 
Test will allow vessel agents to submit required supporting 
documentation, such as vessel certificates, to CBP electronically. CBP 
will then use the data and documentation submitted through VECS to 
process vessel entrances and clearances electronically at designated 
ports.
    VECS is intended to modernize the maritime commercial entry and 
clearance process upon the arrival and departure of a commercial vessel 
at U.S. ports by eliminating the need for vessel agents to fill out and 
submit data elements that are requested on more than one of these forms 
or through other required data submission methods, and instead 
consolidate the maritime entry and clearance process into an electronic 
submission to a single platform. All other CBP forms required for the 
entrance and clearance of a vessel (e.g., CBP Form 1302A: Cargo 
Declaration Outward with Commercial Forms; CBP Form I-418: Passenger 
List-Crew List; \2\ and CBP Form 5129: Crew Member's Declaration) are 
not part of the Test and must continue to be submitted in accordance 
with the procedures outlined in the CBP regulations.
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    \2\ As of February 28, 2022, CBP's amended regulations require 
vessel operators and vessel agents to submit the data elements 
required on CBP Form I-418 electronically via the U.S. Coast Guard's 
electronic Notice of Arrival/Departure (eNOA/D) system. See 86 FR 
73618.
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    The current process for entering and clearing a commercial vessel 
generally involves the manual preparation and presentation of paper 
forms (originals and copies), even though in some cases, CBP 
regulations allow for electronic submissions. VECS will provide a web-
based interface that can be accessed by both vessel agents and CBP on a 
mobile

[[Page 70851]]

tablet or a standard desktop computer. It will pre-populate a number of 
data fields required on the aforementioned entry and clearance forms 
using information provided to CBP through other CBP databases. This 
method will enable the vessel agent to deploy a single transmission of 
data and effectively eliminate the need for duplicative data 
transmissions to CBP. Furthermore, this Test will decrease the time it 
takes for CBP Officers and the trade community to process an entrance 
and clearance of a commercial vessel.

B. Current Vessel Arrival, Entrance, and Clearance Processes and 
Requirements

    The regulations outlining the requirements for vessel arrival, 
entrance, and clearance processes are in 19 CFR part 4. They are 
described below.
1. Requests for Preliminary Entry, Permits, and Special Licenses
    Before a commercial vessel carrying imported merchandise, baggage, 
and/or passengers and required to make formal entry arrives at a U.S. 
port of entry, the vessel agent may apply for a CBP permit or special 
license for unlading and lading. Alternatively, the vessel agent may 
make a preliminary entry before the vessel makes formal entry. See 19 
CFR 4.8 and 4.30.
    Vessel operators or agents seeking preliminary entry in advance of 
arrival must submit the electronic equivalent of a complete CBP Form 
1302 through the CBP Automated Manifest System (AMS) under current 
established regulations, standards and practices and must also submit 
CBP Form 3171 (Application-Permit-Special License-Unlading-Lading-
Overtime Services) to CBP electronically no less than 48 hours prior to 
the vessel's arrival. See 19 CFR 4.7(b)(2) and (b)(4); 19 CFR 4.8. 
Vessel agents typically submit CBP Form 3171 via paper, fax, or email. 
The submission of CBP Form 3171 also serves as notice of a vessel's 
intended date of arrival, and CBP uses the submitted CBP Form 3171 for 
vessel tracking and scheduling. If the intended date of arrival 
changes, the vessel agent must notify CBP of the new arrival time.
    Except under certain circumstances,\3\ vessels arriving directly or 
indirectly from any port or place outside the customs territory of the 
United States,\4\ including the adjacent waters, or from a vessel which 
transits the Panama Canal, may not unlade passengers, cargo, baggage, 
or other articles until the port director issues a permit or special 
license for such unlading. 19 CFR 4.30(a). Similarly, until the port 
director has issued a permit or special license to the vessel operator 
on CBP Form 3171 or through a CBP-approved electronic data interchange 
system, cargo, baggage, or other articles may not be laden on a vessel 
destined to a port or place outside the customs territory of the United 
States, including the adjacent waters, if Customs supervision of such 
lading is required. 19 CFR 4.30(a).
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    \3\ Excepted circumstances are enumerated in 19 CFR 4.30(f), 
(g), and (k), as well as 19 CFR 123.8. Additionally, the exception 
also applies in the case of vessels exempt from entry or clearance 
fees under 19 U.S.C. 288.
    \4\ ``Customs territory of the United States'' includes only the 
States, District of Columbia, and Puerto Rico. 19 CFR 101.1.
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    Instead of applying for routine permits and special licenses to 
unlade/lade each time a vessel enters a U.S. port, vessel agents can 
request a term permit from CBP which allows them to immediately unlade/
lade merchandise, baggage, and/or passengers prior to entry. With a 
term permit, vessel operators can immediately unlade/lade merchandise, 
baggage, and/or passengers for all arrivals and entrances at a 
particular port of entry within a specific, though extendable, time 
period without the submission of CBP Form 3171 at each arrival. Vessel 
agents can apply for a term permit to immediately unlade/lade at a 
particular port of entry by submitting CBP Form 3171 with a continuous 
bond to the CBP port director via fax, email, or in person. If granted 
by CBP, the term permit remains in effect until revoked by the port 
director or automatically cancelled by termination of the supporting 
continuous bond.\5\ Because vessel agents with term permits do not have 
to submit CBP Form 3171 for each arrival and entrance, they must report 
their intended date of arrival to CBP for vessel tracking and 
scheduling. See generally 19 CFR 4.30.
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    \5\ See 19 CFR 4.30.
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    In recent years, CBP has limited advance unlading privileges to 
members of the Customs Trade Partnership Against Terrorism (CTPAT) 
program.\6\ Members of CTPAT may request the privilege of using the 
Advanced Qualified Unlading Approval Program (AQUA Lane), which allows 
them, if approved, to commence cargo operations immediately upon 
arrival rather than having to wait for the vessel to be boarded and 
cleared by CBP Officers. To obtain this benefit, the CTPAT member's 
agent must request the privilege at least 24 hours prior to the arrival 
of the vessel by submitting CBP Form 3171 to CBP.
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    \6\ CTPAT is a voluntary public-private sector partnership 
program which recognizes that CBP can provide the highest level of 
cargo security only through close cooperation with the principal 
stakeholders of the international supply chain, including vessel 
operators and vessel agents. The Security and Accountability for 
Every Port Act of 2006 (SAFE Act) provided a statutory framework for 
the CTPAT program and imposed strict program oversight requirements. 
For more information, visit https://www.cbp.gov/border-security/ports-entry/cargo-security/CTPAT.
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2. Report of Arrival
    Pursuant to 19 CFR 4.2, when a vessel from a foreign port or place, 
any foreign vessel from a port or place within the United States, or 
any vessel of the United States carrying foreign merchandise for which 
entry has not been made, arrives at a U.S. port, the vessel agent must 
immediately report that arrival to the nearest CBP facility or other 
location designated by the port director. Generally, the report of 
arrival may be made by any means of communication to the port director 
or to a CBP Officer assigned to board the vessel.
3. Entry
    For vessels required to make formal entry, the vessel agent must, 
within 48 hours of arrival, generally submit the original vessel 
manifest, along with one copy, to CBP at the customhouse. See 19 CFR 
4.3 and 4.7. The manifest consists of the following CBP forms: CBP Form 
1300: Vessel Entrance or Clearance Statement (for Entrance); CBP Form 
1302: Cargo Declaration; CBP Form 1303: Ship's Stores Declaration; CBP 
Form 1304: Crew's Effects Declaration; CBP Form I-418 (Passenger List-
Crew List); and under some circumstances, CBP Form 5129, Crew Member's 
Declaration. See 19 CFR 4.7 and 4.9; 19 U.S.C. 1434.
    For U.S. vessels documented for foreign or coastwise trade, as well 
as foreign vessels that intend to engage in foreign and coastwise trade 
under CBP regulations, the vessel agent must also include a foreign 
repairs declaration on CBP Form 226: Record of Vessel Foreign Repair or 
Equipment Purchase when it first arrives in the United States following 
a foreign voyage. See 19 CFR 4.14. If the agent declares that foreign 
repairs were done, the agent must also complete the vessel repair entry 
section of CBP Form 226. For foreign vessels, the vessel agent must 
show the vessel's document to the port director on or before the entry 
of the vessel. See 19 CFR 4.9. Along with the vessel manifest, a vessel 
agent making formal entry must also present any vessel certificates, 
such as the Certificate of Financial Responsibility (Passenger 
Transportation Indemnification), Load Line Certificate, and term permit 
to CBP. See, e.g., 19 CFR 4.65-4.66c.

[[Page 70852]]

4. Manifests: Inward Foreign; Traveling; Abstract
    Pursuant to 19 CFR 4.7, the master of every vessel arriving in the 
United States who is required to make formal entry must have a manifest 
on board the vessel. As discussed in the prior section, the manifest 
consists of CBP Forms 1300, 1302, 1303, 1304, I-418, and under some 
circumstances CBP Form 5129. 19 CFR 4.7(a). The original manifest, 
known as the ``inward foreign manifest'' and one copy must be presented 
to the CBP Officer who first demands it.\7\ 19 CFR 4.7(b)(1).
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    \7\ The vessel agent must submit a CBP-approved electronic 
equivalent of the vessel's Cargo Declaration (CBP Form 1302), 24 
hours before the cargo is laden aboard the vessel at the foreign 
port. 19 CFR 4.7(a)(2). The electronic cargo declaration information 
must be transmitted through the CBP Automated Manifest System (AMS), 
or any electronic data interchange system approved by CBP to replace 
the AMS system for this purpose. See 19 CFR 4.7(b)(2).
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    If the vessel will proceed from the port of arrival to other U.S. 
ports with residue foreign cargo or passengers, the master of the 
vessel must provide an additional copy of the manifest for 
certification as a ``traveling manifest.'' 19 CFR 4.7(b)(1) and 4.85. 
At each subsequent U.S. port the vessel travels to with inward foreign 
cargo or passengers still on board, the vessel agent must present the 
traveling manifest. The vessel agent must also present an ``abstract 
manifest'' for any cargo or passengers to be discharged at that port. 
19 CFR 4.85(c).
5. Clearance: Foreign and Permit To Proceed Coastwise
    To depart from a U.S. port or place, vessels must generally apply 
for clearance from CBP.\8\ 19 CFR 4.60-4.61, 4.81. When the vessel's 
next intended destination is a foreign port or place, vessel agents 
must apply for foreign clearance by submitting CBP Form 1300 (Clearance 
Statement), executed by the vessel master or other proper officer, to 
CBP at the customhouse. 19 CFR 4.61(a). The vessel agent must also file 
CBP Form 1302A with the appropriate CBP Officer at the U.S. port from 
which clearance is being sought. 19 CFR 4.63(a). CBP will grant 
clearance either on the paper forms or by approved electronic means. 19 
CFR 4.61(a).
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    \8\ Some vessels are exempt from CBP's clearance requirements. 
See 19 CFR 4.60 and 4.61 for a list of vessels required to obtain 
clearance from CBP; see also 19 CFR 4.81(a) for additional 
exceptions to the general requirement that vessels request and 
receive permission to depart from a U.S. port.
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    When a foreign vessel's next intended destination is another U.S. 
port or place, the vessel agent must apply for a permit to proceed 
coastwise, by filing two copies of CBP Form 1300 with CBP. 19 CFR 
4.81(e); see also 19 CFR 4.85. Unless the vessel is proceeding in 
ballast, the vessel agent must also file three copies of the Cargo 
Declaration with the port director for the port from which the vessel 
seeks to depart. 19 CFR 4.81(e).
    Additionally, before any vessel may proceed from one domestic port 
to another with cargo or passengers on board, the vessel agent must 
present CBP Form 1300, in triplicate, to the director of the port from 
which the vessel seeks to depart. 19 CFR 4.85(b)(1).
6. Report of Diversion
    When a vessel that has been cleared by a U.S. port to depart to a 
foreign port and, while enroute, is diverted to a U.S. port other than 
the one where it was cleared, the vessel agent must immediately notify 
the port that granted the last clearance of the vessel's diversion. 19 
CFR 4.91(b). The vessel agent must also file a report of diversion on 
CBP Form 26 with the port that granted the last clearance. The same 
process applies to vessels that have received a permit to proceed 
coastwise. If such a vessel is diverted, the vessel agent must 
immediately give notice of the diversion to the port director who 
granted the permit to proceed. 19 CFR 4.91(a). Again, the vessel 
operator must also file a report of diversion on CBP Form 26 with that 
port.

II. Description of the Vessel Entrance and Clearance Automation Test

A. Vessel Entrance and Clearance Data Submissions Through VECS

    The Test will assess the functionality of submitting certain vessel 
entrance and clearance data elements to CBP electronically through 
VECS, a web-based program that allows for the automation and electronic 
submission of many paper-based commercial vessel entrance and clearance 
CBP data collections. The Test will allow vessel agents to submit the 
data requested on certain forms to CBP through VECS, instead of 
completing and submitting multiple paper forms.
    Specifically, the Test will allow participants entering, or 
departing from, designated ports to submit electronically the entrance 
and clearance data that CBP currently collects primarily by paper on 
CBP Forms 1300, 1302, 1303, 1304, 3171, 26, 226. Many of these forms 
require data elements that are requested on more than one of the forms 
or through other related data submission requirements. In addition, 
several of the forms must currently be submitted on multiple occasions 
(e.g., a new CBP Form 1300 must be submitted every time a subject 
vessel enters or departs a U.S. port of entry) and/or must be provided 
in duplicate or triplicate.
    VECS will prepopulate certain vessel arrival, entrance, and 
clearance information that Test participants have previously submitted 
to CBP through other maritime requirements, such as USCG's electronic 
Notice of Arrival/Departure (eNOA/D) submission. See 33 CFR 160.201-
216. VECS will then prompt participants to enter additional data 
elements required by the forms manually. The Test will streamline 
information collection by asking for data elements only once, even when 
a particular element is needed to satisfy the requirements of multiple 
different CBP forms. The participant must verify that the information 
that has been pre-populated into VECS is accurate, correct any 
inaccurate or incomplete data fields, supply any additional information 
necessary, and confirm and submit the data to CBP.
1. Requests for Preliminary Entry, Permits, and Special Licenses
    Test participants intending to arrive at one of the participating 
ports may make a request for preliminary entry, permits, special 
licenses, or AQUA Lane privileges through VECS, instead of faxing or 
emailing CBP Form 3171 to the port. The submission of these requests 
will be made on the ``Arrival Report'' page of the VECS website. This 
submission will serve as the vessel's advance notice of arrival to the 
intended port and must be submitted to CBP at least 48 hours prior to 
arrival.
    In the VECS platform, the vessel agent will be able to request 
services for lading, unlading, and overtime. Additionally, participants 
may request the following special permits: (1) Request to unlade cargo 
at other than the original port of destination; (2) Request to 
discharge malfunctioning container; (3) Request to re-lade cargo that 
was prematurely landed by previous importing vessel through error or 
emergency; (4) Request to lade empty containers or stevedoring 
equipment; (5) Request to lade cargo for return to original vessel for 
cargo not landed at its destination and overcarried through error or 
emergency; (6) Request to retain cargo on board, due to emergent 
situation (i.e., port closure), for later return to the United States; 
(7) Request to retain cargo on board, due to denied entry of cargo at 
foreign port, for later return to the United States; (8) Request to 
retain cargo inaccessibly stowed upon arrival at destination, and 
carried

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forward to another domestic port or ports, and returned to the port of 
destination; and (9) Request to retain or unlade cargo not landed at 
its destination and overcarried to another domestic port through error 
or emergency.
2. Report of Arrival
    While participating in the Test, vessel agents will report a 
vessel's arrival to the nearest CBP facility or other location 
designated by the port director immediately via VECS. Thereafter, the 
vessel's arrival information will be available to CBP through the 
vessel agent's VECS submissions.
3. Entry
    For vessels required to make a formal entry, participants in the 
Test must, within 48 hours of arrival at a designated port, submit to 
CBP, via VECS, the data elements required on CBP Form 1300, CBP Form 
1302, CBP Form 1303, and CBP Form 1304. Test participants will first 
log into their Vessel Agency Portal Accounts in ACE, click the ``Launch 
VECS'' button, and then submit this information via the ``Entrance'' 
page of the VECS website. By submitting this data to CBP through VECS, 
participants in the Test will not need to bring the manifest to CBP at 
the customhouse.
    For vessels subject to the requirements of 19 CFR 4.14 (addressing 
equipment purchases for, and repairs to, U.S. vessels), the vessel 
agent must also submit a declaration regarding foreign repairs through 
VECS, consistent with the declaration portion of CBP Form 226. If an 
agent declares in VECS that a U.S. vessel had undergone foreign 
repairs, VECS will send a notification to the Vessel Repair Unit and 
the vessel agent must then follow standard entry procedures.
    For foreign vessels, a vessel agent may submit entry data to CBP 
via VECS, but the vessel agent must also bring the vessel's documents 
to the port director on or before the entry of the vessel at its port 
of first arrival for CBP validation.\9\ The vessel agent may upload a 
valid vessel certificate into VECS using the Document Imaging System 
(DIS) and subsequently present the vessel's document to CBP. A CBP 
Officer will examine the document and verify that the copy uploaded to 
VECS is accurate. The verified electronic copy will be valid for entry 
at subsequent participating ports for one year or until the Test ends, 
whichever is sooner.
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    \9\ These documents are: (1) Certificate Name; (2) Safety 
Construction Certificate; (3) Safety Equipment Certificate; (4) 
Radio Certificate; (5) Dangerous Goods Compliance; (6) Ship 
Security; (7) Safety Management Certificate; (8) Load Line 
Certificate; (9) Registry/Certificate of Nationality; (10) Tonnage 
Certificate; (11) Certificate of Financial Responsibility; (12) 
Continuous Synopsis Record; (13) Certificate of Financial 
Responsibility (Passenger Transportation Indemnification); (14) 
Certificate of Documentation; and (15) Bareboat Charter/Bridge 
Letter.
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    A vessel agent may also upload other supporting documentation into 
VECS through DIS for future electronic validation. If CBP needs to 
review any documentation in person, it may require vessel operators to 
travel to or from the customhouse to provide such documentation.
    A CBP Officer at a designated port of arrival will use a vessel 
agent's VECS submission to review and process the vessel's arrival or 
entrance electronically. If there are no issues with the arrival or 
entrance data submissions, the CBP Officer will then certify the 
vessel's entry application electronically,\10\ verify fees or taxes 
collected by CBP, and grant arrival or formal entry to the vessel, all 
through the VECS interface.
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    \10\ Vessel operators will have the ability to print and save 
PDF copies of vessel manifest forms and will have access to the form 
data submitted through their VECS accounts. Vessel operators 
traveling coastwise to other U.S. ports of entry and who are 
required to make formal entry must have a traveling manifest for 
their future coastwise arrivals.
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4. Manifests: Inward Foreign; Traveling; Abstract
    As previously discussed, a manifest consists of CBP Forms 1300, 
1302, 1303, 1304, I-418, and under some circumstances 5129. 19 CFR 
4.7(a). Through VECS, numerous data elements requested on CBP Forms 
1300, 1302, 1303, and 1304 will be auto-populated into the ``Manifest'' 
screen, using data submitted by the vessel operator to the USCG through 
the eNOA/D system. See 33 CFR 160.201-216. Through an information-
sharing agreement between the two agencies, USCG sends to CBP this data 
soon after the vessel operator or vessel agent submits the same data to 
eNOA/D system. As part of this Test, participants must verify that the 
information that has been auto-populated into VECS is accurate, correct 
any inaccurate or incomplete data fields, supply any additional 
information necessary, and confirm and submit the data to CBP.
    While the Test will be evaluating CBP's capacity to automate CBP 
Forms 1300, 1302, 1303, 1304, 3171, 26 and 226 through VECS, the Test 
will not include the automated or electronic collection of information 
on CBP Forms I-418 or 5129. CBP currently requires vessel operators or 
vessel agents to submit the data required on CBP Form I-418 
electronically through the eNOA/D system. See 19 CFR 4.7(a). CBP 
intends for the CBP Form I-418 data that is electronically submitted 
through the eNOA/D system and then sent to CBP to instead be 
transmitted directly to VECS at a future date. CBP Form 5129 is 
generally optional for manifest purposes. The information collected on 
CBP Form 5129 is largely duplicative of the information collected on 
CBP Form 1304.
5. Clearance: Foreign Clearance and Permit to Proceed Coastwise
    As discussed above, when a vessel seeks to depart from a U.S. port 
or place, the vessel agent must request clearance from CBP. 19 CFR 
4.60. Whether seeking clearance to a foreign port or a permit to 
proceed coastwise the vessel agent must submit the request for 
departure on a CBP Form 1300 (Clearance Statement).
    Test participants may request clearance from designated ports by 
submitting the necessary information on the ``Clearance'' page of the 
VECS website. Most of the data elements requested will be auto-
populated because of the vessel's earlier entry submission. However, 
some data elements will still need to be entered manually during the 
Test. Participants must verify that the information that has been auto-
populated into VECS is accurate, correct any inaccurate or incomplete 
data fields, supply any additional information necessary, and confirm 
and submit the data to CBP.
    The requirement to file three copies of the Cargo Declaration with 
the port director at the U.S. port where the vessel is seeking to 
depart from will be waived for vessels requesting a permit to proceed 
coastwise that are not proceeding in ballast. See 19 CFR 4.81(e). If a 
vessel requests foreign clearance, the vessel agent must affirm that 
CBP Form 1302A or its electronic equivalent has been filed with the 
appropriate CBP Officer at the port from which clearance is being 
sought. Through the Test, after a CBP Officer has reviewed and approved 
the vessel agent's request for clearance and associated forms, the CBP 
Officer must notify the vessel agent through VECS that the vessel has 
been cleared to depart.
    While Test participants will not be required to submit a paper CBP 
Form 1300, it is important to highlight that foreign governments may 
not accept the electronic foreign clearance notification that CBP will 
send to participants through VECS. Accordingly, Test participants 
seeking foreign clearance from one of the designated ports may

[[Page 70854]]

also submit a paper CBP Form 1300. Alternatively, during the Test, CBP 
will also accept submissions of CBP Form 1300 via fax or as an email 
attachment from participants. For fax or email submissions, CBP will 
respond in the same manner.
6. Report of Diversion
    Throughout the Test, if a vessel that has been cleared for 
departure from a participating port through VECS is diverted while 
enroute to a U.S. port other than that from which it was cleared, the 
vessel agent must, as soon as reasonably possible, log into VECS and 
submit information regarding the diversion on the ``Report of 
Diversion'' page. Upon arrival, CBP will notify the vessel agent 
through VECS, and the vessel will be authorized to proceed to the new 
destination.
7. Supplemental Documents
    Through VECS, participants will have the ability to upload vessel 
documents into the CBP Document Imaging System (DIS). After a vessel 
agent uploads a document into the DIS, the vessel agent must present 
the original document to CBP. A CBP Officer will then confirm that the 
original document matches the one uploaded to DIS. Once a vessel 
document is uploaded into DIS and verified by CBP, CBP Officers at 
participating ports will be able to use the electronic copies of vessel 
documents at the time of entrance and clearance. Afterwards, CBP will 
no longer need the original documents to be presented again at a 
participating port during the course of the Test, until the Test is 
completed or the document is no longer valid or associated with the 
vessel (for example, in the case of an expired vessel document/registry 
or a vessel name change). Supplemental document submission through 
VECS/DIS is voluntary during the Test, but participants are strongly 
encouraged to participate in this aspect of the Test in order to take 
full advantage of the automation opportunities provided by VECS.
    The following documents are eligible for submission to CBP through 
VECS/DIS during the Test: (1) Certificate Name; (2) Safety Construction 
Certificate; (3) Safety Equipment Certificate; (4) Radio Certificate; 
(5) Dangerous Goods Compliance; (6) Ship Security; (7) Safety 
Management Certificate; (8) Load Line Certificate; (9) Registry/
Certificate of Nationality; (10) Tonnage Certificate; (11) Certificate 
of Financial Responsibility; (12) Continuous Synopsis Record; (13) 
Certificate of Financial Responsibility (Passenger Transportation 
Indemnification); (14) Certificate of Documentation; and (15) Bareboat 
Charter/Bridge Letter.

B. Eligibility for Participation

    Any commercial vessel agent or other entity responsible for the 
filing of vessel entry and clearance forms at designated ports of entry 
may participate in the Test, as long as it meets the requirements 
outlined below. The ports designated for participation in this Test are 
listed in section II.G.
    All participants must have a Vessel Agency Portal Account in ACE, 
along with the technical capability to electronically submit data to 
CBP, as well as receive responses from CBP. The Vessel Agency Portal 
Account in ACE will serve as access for Test participants to the VECS 
platform. For more information and for instructions on how to request 
an ACE Vessel Agency Portal Account, please visit https://www.cbp.gov/trade/automated/getting-started/using-ace-secure-data-portal. 
Additionally, Test participants will be required to provide a Type 3 
Bond for each VECS filing with CBP. They also must have a valid U.S. 
address that is not a Post Office Box.
    Test participants must agree to participate in any teleconferences 
or meetings established by CBP, when necessary. CBP may hold these 
teleconferences or meetings, as needed, for Test participants to ensure 
that any challenges or operational or technical issues regarding the 
Test are properly communicated and addressed. Lastly, each Test 
participant will be held accountable for the accuracy of the 
information submitted to CBP through VECS, as the participant would be 
for submitting the same information to CBP through the regular vessel 
entry and clearance process. See 19 CFR 4.3a.

C. Application Process and Acceptance

    Commercial vessel agents and other entities interested in 
participating in the Test should first request and create an ACE Vessel 
Agency Account via https://www.cbp.gov/trade/automated/getting-started/using-ace-secure-data-portal. Once an ACE Vessel Agency Account is 
created, CBP will contact the vessel operator or vessel agent to 
provide training on VECS and instructions on how to properly submit the 
required data. Training for VECS is expected to take one to two hours. 
Once the training has been completed, a CBP Officer at the designated 
Test port will inform the Manifest and Conveyance Security Branch of 
the Office of Field Operations in CBP Headquarters to allow access to 
VECS for the Test participant. The vessel operator or vessel agent can 
then begin to submit all relevant data electronically. Vessel operators 
or vessel agents that complete the training will also receive training 
materials from CBP on VECS so that they, in turn, can train other 
employees of their respective vessel agency.
    CBP will continue to provide technical and operational assistance 
to Test participants throughout the Test.

D. Waiver of Certain Regulatory Requirements

    For purposes of the Test, the requirement to file paper CBP Forms 
3171, 1300, 1302, 1303, 1304, 26, and 226 as provided for in 19 CFR 
part 4, will be waived for Test participants seeking entry into or 
clearance out of one of the designated ports when they submit the 
applicable data elements from these forms into VECS, as described 
above. All other CBP forms required for the entrance and clearance of a 
vessel (e.g., CBP Form 1302A: Cargo Declaration Outward with Commercial 
Forms; CBP Form I-418: Passenger List-Crew List; and CBP Form 5129: 
Crew Member's Declaration) must continue to be submitted in accordance 
with the procedures outlined in the CBP regulations. 19 CFR 4.7, 4.7a, 
and 4.7b.
    As discussed in section II.A.5, while participants in this Test 
will not be required to submit a paper CBP Form 1300 to CBP during the 
Test, CBP notes that foreign governments may not accept the electronic 
foreign clearance notification that CBP will send out to participants 
through VECS. Accordingly, participants seeking foreign clearance from 
one of the designated ports during this Test may also submit a paper 
CBP Form 1300. Alternatively, during the Test, CBP will also accept 
submissions of CBP Form 1300 by fax or as an email attachment from Test 
participants. For fax or email submissions, CBP will respond in the 
same manner.
    Participation in the Test does not affect a participant's 
obligations to comply with any other applicable statutory and 
regulatory requirements. Participants will therefore still be subject 
to the relevant penalties for non-compliance. Additionally, submission 
of data under the Test does not exempt the participant from any CBP or 
other U.S. Government agency program requirements. Further, 
participation in the Test does not exempt participants from any 
statutory sanctions if a violation of U.S. laws is discovered within a 
shipment or container presented for entrance or clearance.

[[Page 70855]]

E. Costs to Test Participants

    Test participants are responsible for all costs incurred as a 
result of their participation in the Test. The costs of participation 
will vary, depending on participants' current operations. Prospective 
Test participants will incur application time burdens, along with 
participation costs. These could include costs to: create and maintain 
a VECS profile; possess a type 3 bond; maintain a valid U.S. address; 
and adapt to and use the Test process. Such costs may be offset by a 
significant reduction in the expenses associated with printing, 
processing, and presenting paper forms and supporting documents to CBP. 
Participants are encouraged to keep track of the costs incurred by 
their participation in the Test.

F. Benefits to Test Participants

    While the benefits of the Test will vary by participant, several 
advantages of participating will include: the reduction in costs 
associated with the elimination of paper form printing, processing, and 
presentation; added time savings from eliminating the need to provide 
duplicative data on multiple forms; and greater transparency, 
flexibility, and communication with CBP during the vessel entrance and 
clearance process. The Test will also offer participants opportunities 
to help CBP establish, evaluate, and refine its electronic vessel 
entrance and clearance system and facilitate the future of implementing 
mandatory electronic vessel entrance and clearance information 
submission requirements. Participants are encouraged to keep track of 
the benefits experienced by their participation in the Test.

G. Designated Ports; Duration, Scope, and Evaluation of the Vessel 
Entrance and Clearance Forms Automation Test

1. Designated Ports
    The Test will initially operate at the Port of Gulfport in 
Gulfport, Mississippi. CBP later intends to roll out the Test at the 
following designated ports: Mobile, AL; Los Angeles-Long Beach, CA; 
Port Hueneme, CA; Jacksonville, FL; Port Everglades, FL; Savannah, GA; 
Baton Rouge, LA; Gramercy, LA; Lake Charles, LA; and New Orleans, LA. 
CBP will notify participants of the Test expansion at the above-
designated ports, as well as the designation of additional ports for 
Test expansion after publication of this document, via the Vessel 
Entrance and Clearance System page on CBP's website, available at 
www.cbp.gov/trade/automated/vessel-entrance-and-clearance-system-vecs.
2. Duration, Scope, and Evaluation of the Test
    The Test will begin no earlier than December 21, 2022 and will 
continue for 24 months from the date the Test begins.
    Throughout the Test, CBP will evaluate the results and determine if 
the Test should be expanded to additional ports beyond those designated 
above, be extended for an additional period of time, or be expanded to 
include additional maritime forms. CBP will take into consideration any 
comments or feedback that is received from Test participants. Any 
expansion or extension of the Test will be announced in the Federal 
Register.
    CBP will begin rulemaking to require the submission of most vessel 
entry and clearance data to CBP electronically through VECS for all 
mandated vessels seeking entry into or clearance from U.S. ports after 
sufficient Test analysis and evaluation is conducted.

H. Misconduct Under the Test

    If a Test participant fails to abide by the rules, procedures, or 
terms and conditions of this and all other applicable Federal Register 
notices, fails to exercise appropriate level of care in the execution 
of Test participant obligations, or otherwise fails to comply with all 
applicable laws and regulations, the participant may be suspended from 
participation in this Test and may also be subject to civil or criminal 
penalties, liquidated damages, and other applicable enforcement action. 
Additionally, CBP may suspend a Test participant if it determines that 
an unacceptable compliance risk exists.
    If CBP determines that a suspension is warranted, CBP will notify 
the participant of this decision, set forth the facts or conduct 
warranting suspension, and provide the date when the suspension is 
effective. In the case of willful misconduct or where public health 
interests or safety are concerned, the suspension may be effective 
immediately. This decision may be appealed in writing to the Executive 
Assistant Commissioner, Office of Field Operations, within 15 days of 
notification. The appeal should address the facts or conduct charges 
contained in the notice and state how the participant has or will 
achieve compliance. CBP will notify the participant within 30 days of 
receipt of an appeal whether the appeal is granted or denied. If a Test 
participant has already been suspended, CBP will notify the participant 
if and when his or her participation in the Test will be reinstated.

III. Authority

    This Test is being conducted in accordance with 19 CFR 101.9(a) of 
the CBP regulations, which authorizes the Commissioner to impose 
requirements different from those specified in the CBP regulations for 
the purposes of conducting a test program or procedure designed to 
evaluate the effectiveness of new technology or operational procedures 
regarding the processing of passengers, vessels, or merchandise.

IV. Privacy

    CBP will ensure that all Privacy Act requirements and applicable 
policies are adhered to during the implementation of this Test.

V. Paperwork Reduction Act

    The Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3507(d)) 
requires that CBP consider the impact of paperwork and other 
information collection burdens imposed on the public. 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 the Office of Management and Budget.
    This Test does not impose any new information collection 
requirements; it simply changes the modality through which currently 
collected information is submitted to CBP. The Vessel Entrance and 
Clearance Statement (CBP Form 1300) (VECS) has been approved by the 
Office of Management and Budget (OMB) in accordance with the 
requirements of the Paperwork Reduction Act (44 U.S.C. 3507) under OMB 
control number 1651-0019. In addition, the following collections of 
information have been submitted to OMB for review and approval in 
accordance with the requirements of the Paperwork Reduction Act (44 
U.S.C. 3507): 1651-0025 Report of Diversion (CBP Form 26), 1651-0027 
Record of Vessel Foreign Repair or Equipment (CBP Form 226), 1651-0001 
Cargo Manifest/Declaration, Stow Plan, Container Status Messages and 
Importer Security Filing (CBP Form 1302), 1651-0018 Ships Stores 
Declaration (CBP Form 1303), 1651-0020 Crew Effects Declaration (CBP 
Form 1304), 1651-0005 Application-Permit-Special License Unlading/
Lading, Overtime Services (CBP Form 3171).

Pete Flores,
Executive Assistant Commissioner, Office of Field Operations.
[FR Doc. 2022-25284 Filed 11-18-22; 8:45 am]
BILLING CODE 9111-14-P