CSMS Message: 94-000623

TO : ALL ABI BROKERS.

FROM : JUDY SCHOENY

SUBJECT : MOD ACT-REMOTE LOCATION FILING

DATE : 06/22/94

REMOTE FILING CONCEPT

RECOGNIZING THAT MANY OF ITS "CUSTOMERS" ARE ANXIOUS TO IMPLEMENT REMOTE
LOCATION FILING AS SOON AS POSSIBLE, A CUSTOMS TEAM EXAMINED CURRENT ACS
PROGRAMMING AND IMPLEMENTATION OPTIONS. THE TEAM CONCLUDED THAT RATHER
THAN AWAITING DEVELOPMENT AND IMPLEMENTATION OF ALL REMOTE FILING
FEATURES, IT WOULD BE BEST TO IMPLEMENT REMOTE FILING IN THREE DISTINCT
PHASES. THE ATTACHED DOCUMENT PROVIDES AN ANALYSIS OF SUCH A PHASED
APPROACH. WHILE IT DOES NOT PROVIDE ALL OF THE DESIRED BENEFITS
IMMEDIATELY, IT DOES ALLOW US TO BEGIN THE PROCESS ON A EXPEDITED BASIS.

JOHN DURANT

REMOTE FILING CONCEPT
JUNE 10, 1994

INTRODUCTION

AFTER HAVING SEVERAL OPEN PUBLIC MEETINGS, AND A NUMBER OF
MEETINGS WITH VARIOUS SEGMENTS OF THE IMPORTING COMMUNITY, THE
CONSENSUS FROM THE TRADE COMMUNITY IS THAT THE CUSTOMS SERVICE
SHOULD PURSUE REMOTE FILING AS THE FIRST MAJOR MOD ACT AUTOMATION
INITIATIVE. AS A RESULT, CUSTOMS MANAGEMENT DECIDED TO FORM A
WORK TEAM OF CUSTOMS EMPLOYEES TO EXAMINE THE VARIOUS OPTIONS AND
ALTERNATIVES OF REMOTE ENTRY FILING. THIS CONCEPT PAPER CONTAINS
THE RECOMMENDATIONS OF THE WORK TEAM. THE IMPORTING COMMUNITY
SHOULD BE ADVISED THAT THIS PAPER IS NOT A FINAL DESIGN DOCUMENT.
PROGRAMMING EFFORTS SHOULD NOT BE UNDERTAKEN BASED ON THE
INFORMATION CONTAINED IN THIS PAPER. ADDITIONAL DISCUSSIONS WILL
BE HELD WITH THE TRADE, AND ADDITIONAL INFORMATION WILL BE
PUBLISHED BEFORE CUSTOMS BEGINS PROGRAMMING FOR REMOTE ENTRY
FILING.

PHASED APPROACH

AS THE WORK TEAM BEGAN DISCUSSING THE DETAILS ON THE AMOUNT
OF PROGRAMMING REQUIRED, AND THE ANALYSIS THAT WOULD BE REQUIRED
TO ASSESS THE WORKLOAD IMPACT ON THE CUSTOMS FIELD OFFICES, IT
BECAME IMMEDIATELY APPARENT TO THE TEAM MEMBERS THAT ANY ATTEMPT
TO IMPLEMENT ALL THE FEATURES OF REMOTE FILING AT ONE TIME WOULD
BE A LONG TERM PROJECT. PHASING REMOTE IN GRADUALLY WOULD PUT
BOTH CUSTOMS AND THE TRADE IN A BETTER POSITION TO BEGIN THE
PROCESS OF REMOTE FILING IN A SHORTER TIME FRAME. BOTH PARTIES
WOULD THEN HAVE THE OPPORTUNITY TO ASSESS THE IMPACT OF REMOTE
FILING, AND WOULD HAVE MORE FLEXIBILITY TO MAKE ADJUSTMENTS IN
LATER PHASES.

AFTER CAREFULLY REVIEWING ALL THE SYSTEM AND OPERATIONAL
CONSIDERATIONS OF REMOTE FILING, THE WORK TEAM CONCLUDED THAT IT
WOULD BE BEST TO IMPLEMENT REMOTE FILING IN THREE DISTINCT
PHASES. HERE IS A BRIEF SUMMARY OF EACH PHASE WITH A DETAILED
DISCUSSION OF EACH PHASE TO FOLLOW:

PHASE ONE
THE FIRST PHASE WOULD PROVIDE FOR REMOTE FILING WITH THE
CARGO RELEASE, ENTRY, AND ENTRY SUMMARY BEING HANDLED AT THE
LOCATION OF THE INITIAL CARGO ARRIVAL. IN EFFECT, THE DATA
AND PAYMENT (ACH TRANSACTION) WILL BE ELECTRONICALLY FILED
FROM A REMOTE LOCATION, BUT THE CUSTOMS PROCESSING WILL BE
DONE AT THE LOCATION OF THE INITIAL CARGO ARRIVAL.

PHASE TWO
THE NEXT PHASE WOULD ALLOW THE FILER TO DESIGNATE A SEPARATE
LOCATION OF EXAM. THE DATA AND PAYMENT WOULD BE FILED FROM
A REMOTE LOCATION, AND THE CUSTOMS PROCESSING OF THE ENTRY
AND ENTRY SUMMARY WOULD CONTINUE TO BE HANDLED AT THE
LOCATION OF THE INITIAL CARGO ARRIVAL. CUSTOMS WOULD
ATTEMPT TO CONDUCT ANY EXAMS REQUIRED AT THE LOCATION
DESIGNATED BY THE REMOTE FILER. HOWEVER, WHEN DEEMED
NECESSARY CUSTOMS WOULD RETAIN THE RIGHT TO CONDUCT AN
EXAMINATION AT THE INITIAL LOCATION OF CARGO ARRIVAL. IN
ADDITION, CUSTOMS AND OTHER GOVERNMENT AGENCY STAFFING AT A
DESIGNATED LOCATION MAY ALSO HAVE AN IMPACT ON WHETHER OR
NOT CARGO WILL BE MOVED TO A DESIGNATED LOCATION FOR EXAM.

PHASE THREE
THE THIRD AND FINAL PHASE WOULD PROVIDE FOR FULL REMOTE
FILING. THE REMOTE FILER WOULD CONTINUE TO DESIGNATE A
LOCATION FOR EXAM. UNLESS CUSTOMS DETERMINES A NEED TO
EXAMINE THE CARGO AT THE INITIAL LOCATION OF ARRIVAL, THE
EXAMINATION WOULD BE DONE AT THE DESIGNATED LOCATION. IT IS
ANTICIPATED THAT THE REMOTE FILER WOULD BE ASSIGNED A
"SERVICE CENTER" TO HANDLE POST SUMMARY WORK SUCH AS
PROTESTS, AND FP F CASES. CUSTOMS WOULD ASSIGN THE ENTRY
SUMMARY TO BE WORKED AT A LOCATION DEEMED APPROPRIATE BASED
ON STAFFING, COMMODITY, AND WORKLOAD.

FOR YOUR INFORMATION, A GLOSSARY OF TERMS USED IN THIS PAPER
IS CONTAINED AT THE END OF THE DOCUMENT.

PHASE ONE

APPLICATION

IT IS LIKELY THAT SOME TYPE OF APPLICATION AND APPROVAL
PROCESS WILL BE REQUIRED TO ENSURE THAT THE REMOTE FILER MEETS
ALL OF THE LEGISLATIVE REQUIREMENTS TO PARTICIPATE IN REMOTE
FILING. IT IS ANTICIPATED THAT THE PROCESS WOULD RESEMBLE THE
CURRENT AUTOMATED BROKER INTERFACE (ABI) APPLICATION PROCEDURE
OUTLINED IN SECTION 143, SUBPART A, OF THE CUSTOMS REGULATIONS.
IT SHOULD BE NOTED THAT A BROKER WOULD NEED A NATIONAL PERMIT TO
PARTICIPATE AS A REMOTE FILER. THE DETAILS ON THE APPLICATION
PROCESS AND THE NATIONAL PERMIT PROCESS WILL BE PUBLISHED AT A
LATER DATE.

REQUIREMENTS

IN ORDER TO PARTICIPATE IN REMOTE ENTRY FILING THE MOD ACT
STIPULATES THAT A REMOTE ENTRY FILER MUST BE ABLE TO TRANSMIT
CERTAIN INFORMATION ELECTRONICALLY. THE LAW REFERS TO THE
INFORMATION AS "CORE ENTRY INFORMATION" AND LISTS THE FOLLOWING
SPECIFIC ELEMENTS:

1. ELECTRONIC ENTRY (3461 3461 ALT DATA)
2. ELECTRONIC SUMMARY (7501 DATA)
3. ELECTRONIC INVOICE DATA (WHEN REQUIRED BY CUSTOMS)
4. ELECTRONIC PAYMENT OF DUTIES, FEES, AND TAXES (ACH).

THE LAW STATES THAT CUSTOMS MAY NOT WAIVE, OR PERMIT ANY
EXEMPTIONS FROM THESE CORE ELECTRONIC DATA ELEMENTS.

IN ADDITION TO THE ELECTRONIC CORE DATA ELEMENTS STIPULATED
IN THE LEGISLATION, THERE ARE OTHER REQUIREMENTS THAT REMOTE
FILERS WILL NEED TO MEET IN ORDER TO PARTICIPATE IN THE FIRST
PHASE. THE ADDITIONAL REQUIREMENTS ARE:

O THE CARGO MUST ARRIVE ON AN AUTOMATED CARRIER IF THE
AUTOMATED MANIFEST SYSTEM (AMS) IS AVAILABLE FOR THAT MODE
OF TRANSPORTATION (MOT).

O THE CARGO RELEASE (3461) INFORMATION MUST BE "CERTIFIED"
FROM THE ABI ENTRY SUMMARY (EI) TRANSACTION.

O A CONTINUOUS BOND MUST BE USED.

O ONLY ENTRY TYPES 01 AND 11 WILL BE ALLOWED.

O PHASE ONE WILL INITIALLY BE LIMITED TO THOSE PORTS CAPABLE
OF HANDLING ELECTRONIC INVOICE PROCESSING (EIP). THE
CURRENT EIP PORTS ARE PHILADELPHIA, MIAMI, LOS ANGELES,
HOULTON ME AND CALAIS ME (SUMMARIES FILED AND PROCESSED IN
PORTLAND ME), LAREDO, LOUISVILLE (SUMMARIES FILED AND
PROCESSED IN CLEVELAND), AND ROCHESTER (SUMMARIES FILED AND
PROCESSED IN BUFFALO). AS PORTS BECOME CAPABLE OF HANDLING
EIP, THEY WOULD BE ADDED TO THE REMOTE FILING PROGRAM.

O IF THERE IS AN OTHER GOVERNMENT AGENCY (OGA) INTERFACE
OPERATING IN A PORT ON A VOLUNTARY BASIS, IT IS EXPECTED
THAT REMOTE FILERS WOULD BE PARTICIPATING IN THE OGA
INTERFACE AT THAT PORT.

DATA ELEMENTS

REMOTE FILERS WILL NEED TO TRANSMIT SOME NEW DATA ELEMENTS
IN THEIR ABI TRANSACTIONS. THE THREE NEW DATA ELEMENTS ARE:

O THE REMOTE FILING LOCATION; THAT IS, THE LOCATION FROM WHERE
THE INFORMATION IS BEING SUBMITTED. CUSTOMS WILL NEED THIS
INFORMATION TO KNOW WHERE TO ROUTE THE ABI ELECTRONIC
MESSAGES. IT IS ANTICIPATED THAT WE CAN ALSO USE THIS AS AN
INDICATOR TO IDENTIFY REMOTE ENTRIES.
O THE DISTRICT PORT AND FILER CODE OF THE SUBAGENT IN THE
CARGO ARRIVAL LOCATION.

THE DETAILS AND RECORD LAYOUTS FOR THESE NEW DATA ELEMENTS WILL
BE PROVIDED AT A LATER DATE AFTER DISCUSSION WITH THE TRADE
COMMUNITY.

RESTRICTIONS

DURING THE FIRST PHASE CERTAIN RESTRICTIONS WILL BE
NECESSARY. CONSOLIDATED SUMMARIES AND IN-BOND TRANSACTIONS WILL
NOT BE ALLOWED. IN ADDITION, IF THERE IS INFORMATION THAT IS
REQUIRED UP TO AND INCLUDING THE FILING OF THE SUMMARY THAT
CANNOT BE TRANSMITTED ELECTRONICALLY, THEN THE REQUIRED
INFORMATION MUST BE SUBMITTED WITH A COMPLETED PAPER CF3461 OR
CF7501 AT THE CARGO ARRIVAL LOCATION. PROVIDING ALL THE OTHER
REQUIREMENTS ARE MET, THE FACT THAT PAPER IS REQUIRED WOULD NOT
PRECLUDE AN ENTRY FROM REMOTE FILING.

IF A REMOTE FILER DISCOVERS AN ERROR ON THE ENTRY (3461)
AFTER RECEIVING PROVISIONAL RELEASE MESSAGES VIA ABI, AND THE
ERROR CANNOT BE CORRECTED ELECTRONICALLY, THEN A PAPER 3461 MUST
BE SUBMITTED WITH THE PEN AND INK CHANGES NOTED AT THE CARGO
ARRIVAL LOCATION. FINALLY, IF CUSTOMS MUST REJECT AN ENTRY
SUMMARY(7501) BACK TO THE REMOTE FILER TO RE-TRANSMIT, THEN THE
REMOTE FILER MUST SUBMIT A PAPER 7501 AT THE CARGO ARRIVAL
LOCATION AFTER RE-TRANSMITTING THE CORRECTIONS VIA ABI. THESE
PAPER SUBMISSION REQUIREMENTS WILL BE PHASED OUT AS CUSTOMS
DEVELOPS ELECTRONIC CORRECTION CAPABILITIES.

EXPANSION TO OTHER PORTS

AS FILERS EXPRESS THE DESIRE TO FILE REMOTELY AT OTHER
PORTS, CUSTOMS WILL ATTEMPT TO MEET THOSE REQUESTS. FUTURE
EXPANSION WILL BE DETERMINED BY CONSIDERING FACTORS SUCH AS EIP
TRAINING REQUIRED, EQUIPMENT NEEDS AT THE PORT, THE NUMBER OF
ENTRIES FILED BY THE REMOTE FILERS AT THE PORT, AND SYSTEM
CAPABILITIES AT THE PORT.

PHASE TWO

IN THE NEXT PHASE, THE REMOTE FILING CAPABILITIES WOULD BE
EXPANDED. THE TRADE WOULD BE ABLE TO DESIGNATE A LOCATION OF
EXAM SEPARATE FROM THE INITIAL CARGO ARRIVAL LOCATION. DURING
THIS PHASE CUSTOMS WOULD ATTEMPT TO ALLOW ADDITIONAL ENTRY TYPES
TO BE FILED FROM REMOTE LOCATIONS. IT IS ANTICIPATED THAT ALL
THE OTHER REQUIREMENTS AND RESTRICTIONS OF PHASE ONE WOULD REMAIN
IN PLACE. IT IS POSSIBLE, HOWEVER, THAT CERTAIN RESTRICTIONS MAY
BE LIFTED DURING THE SECOND PHASE. FOR EXAMPLE, AS OTHER
AGENCIES BECOME AUTOMATED WITH CUSTOMS, LESS PAPER WOULD BE
REQUIRED.

DATA ELEMENTS

IN THIS PHASE REMOTE FILERS WILL NEED TO PROVIDE THE
DESIGNATED EXAM LOCATION. CUSTOMS WILL ATTEMPT TO DO ANY
EXAMINATIONS REQUIRED AT THE DESIGNATED LOCATION CHOSEN BY THE
REMOTE FILER. HOWEVER, CUSTOMS MAY FIND IT NECESSARY TO DO AN
EXAM AT THE INITIAL LOCATION OF ARRIVAL. AS A RESULT, IT IS
ANTICIPATED THAT THE REMOTE FILER WILL NEED TO HAVE A SUBAGENT AT
BOTH THE LOCATION OF CARGO ARRIVAL AND AT THE DESIGNATED EXAM
LOCATION. REMOTE FILERS WILL NEED TO PROVIDE A SUBAGENT FOR EACH
PORT.

AS MENTIONED UNDER THE SUMMARY SECTION OF PHASE TWO, CUSTOMS
AND OTHER GOVERNMENT AGENCY STAFFING AT A PARTICULAR LOCATION MAY
REQUIRE THAT WE PLACE SOME LIMITATIONS ON A FILER'S REQUEST TO
HAVE THE CARGO MOVED TO A SPECIFIC PORT FOR EXAM. HOWEVER, WE
WILL DO OUR BEST TO ACCOMMODATE A FILER'S CHOICE TO HAVE CARGO
EXAMINED AT A PARTICULAR LOCATION.

IN THE DISCUSSIONS HELD WITH THE TRADE ON REMOTE FILING, AN
INTEREST WAS EXPRESSED BY THE COMMUNITY TO HAVE THE CAPABILITY OF
TRANSMITTING A CONTACT NAME AND PHONE NUMBER TO CUSTOMS VIA ABI.
IT WAS FELT THAT THIS INFORMATION COULD BE USED BY CUSTOMS
EMPLOYEES AT THE PORT OF ARRIVAL, OR THE DESIGNATED EXAM SITE, IN
CONTACTING THE APPROPRIATE PARTY AT THE REMOTE FILER'S OFFICE.
IT COULD ALSO BE USED TO PROVIDE A CONTACT NAME AT A SUBAGENT'S
OFFICE. THE OPTION TO PROVIDE A CONTACT NAME AND PHONE NUMBER
WILL BE OFFERED IN THE SECOND PHASE. THIS INFORMATION WILL BE
USED AT THE DISCRETION OF THE CUSTOMS OFFICER. UNDER NO
CIRCUMSTANCES WILL CUSTOMS EMPLOYEES BE OBLIGATED TO USE THE
CONTACT NAME AND PHONE NUMBER TO PROVIDE STATUS UPDATES ON THE
ENTRY OR ENTRY SUMMARY. FILERS WILL BE EXPECTED TO CONTINUE TO
UTILIZE THE EXISTING ABI APPLICATIONS TO OBTAIN UPDATES ON THE
STATUS OF THEIR ENTRIES AND ENTRY SUMMARIES.

OTHER CONSIDERATIONS

IF IT IS DETERMINED THAT AN EXAM NEEDS TO TAKE PLACE AT THE
DESIGNATED EXAM LOCATION, THE CARGO WILL NEED TO PROCEED TO THAT
LOCATION UNDER SOME TYPE OF CONTROLLED MOVEMENT. ADDITIONAL
DISCUSSIONS WILL BE NEEDED BETWEEN CUSTOMS, REMOTE FILERS,
IMPORTERS, CARRIERS, AND SURETY COMPANIES TO DETERMINE THE MOST
COST EFFECTIVE AND EFFICIENT WAY TO GET THAT ACCOMPLISHED THAT
WILL NOT COMPROMISE CUSTOMS TRADE ENFORCEMENT AND REVENUE
COLLECTION RESPONSIBILITIES.

PHASE THREE

IN THE FINAL PHASE BOTH CUSTOMS AND THE TRADE WOULD
EXPERIENCE THE FULL BENEFITS OF REMOTE FILING. THE REMOTE FILER
WILL USE A BUSINESS SERVICE CENTER (BSC) FOR PROBLEM RESOLUTION.
IN THOSE CASES WHERE THE REMOTE FILER NEEDS REPRESENTATION AT THE
PORT OF ARRIVAL, OR THE DESIGNATED PORT OF EXAMINATION, THE
SUBAGENT COULD ACT ON BEHALF OF THE REMOTE FILER. DURING THIS
PHASE, CUSTOMS WOULD HAVE THE CAPABILITY TO ASSIGN THE ENTRY
SUMMARY WORK TO ANY LOCATION IN THE COUNTRY. THE SYSTEM WOULD
ASSIGN THE SUMMARY TO A LOCATION BASED ON THE WORKLOAD AT THE
TIME OF ASSIGNMENT.

IT HAS YET TO BE DETERMINED WHETHER OR NOT THE LAST PHASE OF
REMOTE ENTRY FILING WILL REQUIRE ANY NEW DATA ELEMENTS FROM THE
REMOTE ENTRY FILER. THE WORK THAT NEEDS TO BE DONE TO IMPLEMENT
THE FINAL PHASE INVOLVES MAJOR OPERATIONAL DECISIONS ON HOW
CUSTOMS WILL ASSIGN WORKLOAD AND HOW THE AGENCY WILL BE
STRUCTURED IN THE FUTURE. ONCE THOSE DECISIONS ARE MADE, THERE
WILL BE A SIGNIFICANT AMOUNT OF INTERNAL ACS PROGRAMMING REQUIRED
TO IMPLEMENT THOSE CHANGES. HOWEVER, OTHER FEATURES OF THE
NATIONAL CUSTOMS AUTOMATED PROGRAM, SUCH AS ELECTRONIC FILING OF
PROTEST, ELECTRONIC CF28'S AND CF29'S, AND ELECTRONIC FILING OF
BONDS, MAY BE AVAILABLE BY THAT TIME. DETAILS ON THESE PROGRAMS
WILL BE PUBLISHED SEPARATELY. FILERS WHO PLAN TO TAKE FULL
ADVANTAGE OF REMOTE ENTRY FILING WILL NEED TO INCORPORATE THESE
AUTOMATED FEATURES INTO THEIR DEVELOPMENT SCHEDULES.

GLOSSARY OF TERMS

LISTED BELOW ARE DEFINITIONS FOR SOME OF THE TERMS USED IN THIS
CONCEPT DOCUMENT.

REMOTE FILING LOCATION
IT IS THE OFFICE LOCATION OF THE REMOTE FILER THAT IS
RESPONSIBLE FOR PREPARING THE ENTRY AND ENTRY SUMMARY
INFORMATION. FOR EXAMPLE, IF THE BALTIMORE OFFICE OF A
BROKERAGE FIRM INTENDS TO FILE AN ENTRY FOR MERCHANDISE THAT
WILL ARRIVE IN HOUSTON AND BE SHIPPED TO MINNEAPOLIS, THE
REMOTE FILING LOCATION WOULD BE BALTIMORE. IT SHOULD NOT BE
CONFUSED WITH THE DATA PROCESSING (DP) SITE THAT ACTUALLY
TRANSMITS THE ABI INFORMATION TO CUSTOMS. IF THE BROKERAGE
FIRM HAD DIFFERENT OFFICES NETWORKED TO A MAIN FRAME
COMPUTER LOCATED IN NEW YORK, AND ALL THEIR ABI WORK WAS
TRANSMITTED TO CUSTOMS FROM THE NEW YORK OFFICE, NEW YORK
WOULD BE THE DP SITE, BUT THE REMOTE FILING LOCATION WOULD
BE BALTIMORE.

LOCATION OF INITIAL CARGO ARRIVAL
IT IS THE FIRST PORT OF ARRIVAL IN THE UNITED STATES. IN
THE EXAMPLE SCENARIO SHOWN ABOVE, HOUSTON WOULD BE THE
LOCATION OF INITIAL CARGO ARRIVAL.

DESIGNATED EXAM LOCATION
IF AN EXAM IS NECESSARY, IT IS THE LOCATION WHERE THE FILER
WOULD LIKE THE EXAM TO TAKE PLACE. IN THE EXAMPLE ABOVE, IF
THE CARGO IS DESTINED FOR MINNEAPOLIS, AND THE FILER WOULD
LIKE TO HAVE THE EXAM CONDUCTED AT THE FINAL DESTINATION OF
THE CARGO, MINNEAPOLIS WOULD BE THE DESIGNATED EXAM
LOCATION.

PORT OF ENTRY PROCESSING
IT IS THE PORT WHERE CUSTOMS EMPLOYEES PERFORM THE
PROCESSING OF THE ENTRY (3461).

PORT OF ENTRY SUMMARY PROCESSING
IT IS THE PORT WHERE CUSTOMS EMPLOYEES PERFORM THE
PROCESSING OF THE ENTRY SUMMARY (7501).