CSMS Message: 95-000338

TO : ALL ABI BROKERS.

FROM : LINDA A LEBARON

SUBJECT : REMOTE PROTOTYPE ANNOUNCEMENT

DATE : 04/10/95

ADM-9-03-CO:R:IT:R
912571 GRV

DEPARTMENT OF THE TREASURY
U.S. CUSTOMS SERVICE

ANNOUNCEMENT OF NATIONAL CUSTOMS AUTOMATION PROGRAM TEST
REGARDING REMOTE LOCATION FILING

AGENCY: U.S. CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY.

ACTION: GENERAL NOTICE.

SUMMARY: THIS NOTICE ANNOUNCES CUSTOMS PLAN TO CONDUCT THE
FIRST OF AT LEAST TWO PROTOTYPE TESTS REGARDING REMOTE
LOCATION FILING. THIS NOTICE INVITES PUBLIC COMMENTS
CONCERNING ANY ASPECT OF THE PLANNED TEST, INFORMS
INTERESTED MEMBERS OF THE PUBLIC OF THE ELIGIBILITY
REQUIREMENTS FOR VOLUNTARY PARTICIPATION IN THE TESTING OF
THE FIRST PROTOTYPE, AND DESCRIBES THE BASIS ON WHICH
CUSTOMS WILL SELECT PARTICIPANTS.

EFFECTIVE DATE: THE TEST OF THE FIRST PROTOTYPE WILL
COMMENCE NO EARLIER THAN JUNE 1, 1995, AND WILL RUN FOR
APPROXIMATELY SIX MONTHS. COMMENTS CONCERNING THE
METHODOLOGY OF THE FIRST REMOTE FILING PROTOTYPE MUST BE
RECEIVED ON OR BEFORE INSERT DATE 30 DAYS FROM PUBLICATION
IN THE FEDERAL REGISTER . TO PARTICIPATE IN THE FIRST
PROTOTYPE TEST, THE NECESSARY INFORMATION, AS OUTLINED IN
THIS NOTICE, MUST BE FILED WITH CUSTOMS ON OR BEFORE INSERT
DATE 30 DAYS FROM PUBLICATION IN THE FEDERAL REGISTER .

ADDRESSES: WRITTEN COMMENTS REGARDING THIS NOTICE, AND
INFORMATION SUBMITTED TO BE CONSIDERED FOR VOLUNTARY
PARTICIPATION ON THE FIRST PROTOTYPE SHOULD BE ADDRESSED TO
THE REMOTE FILING TEAM, U.S. CUSTOMS SERVICE, 1301
CONSTITUTION AVENUE, N.W., ROOM 1322, WASHINGTON, D.C.
20229-0001.

FOR FURTHER INFORMATION CONTACT:
FOR SYSTEMS OR AUTOMATION ISSUES: RUSS LANOUETTE (202)
927-0322, OR JACKIE JEGELS (202) 927-0201.
FOR OPERATIONAL OR POLICY ISSUES: LINDA LEBARON (202)
927-0424.

SUPPLEMENTARY INFORMATION:
BACKGROUND
TITLE VI OF THE NORTH AMERICAN FREE TRADE AGREEMENT
IMPLEMENTATION ACT (THE ACT), PUBLIC LAW 103-182,
107 STAT. 2057 (DECEMBER 8, 1993), CONTAINS PROVISIONS
PERTAINING TO CUSTOMS MODERNIZATION (107 STAT. 2170).
SUBTITLE B OF TITLE VI ESTABLISHES THE NATIONAL CUSTOMS
AUTOMATION PROGRAM (NCAP)--AN AUTOMATED AND ELECTRONIC
SYSTEM FOR THE PROCESSING OF COMMERCIAL IMPORTATIONS.
SECTION 631 IN SUBTITLE B OF THE ACT CREATES SECTIONS 411
THROUGH 414 OF THE TARIFF ACT OF 1930 (19 U.S.C. 1411-1414),
WHICH DEFINE AND LIST THE EXISTING AND PLANNED COMPONENTS OF
THE NCAP (SECTION 411), PROMULGATE PROGRAM GOALS (SECTION
412), PROVIDE FOR THE IMPLEMENTATION AND EVALUATION OF THE
PROGRAM (SECTION 413), AND PROVIDE FOR REMOTE LOCATION
FILING (RLF) (SECTION 414). SECTION 101.9(B) OF THE CUSTOMS
REGULATIONS (19 CFR 101.9(B)), IMPLEMENTS THE TESTING OF
NCAP COMPONENTS. SEE, T.D. 95-21 (60 FR 14211, MARCH 16,
1995).

I. DESCRIPTION OF PROPOSED TEST
THE CONCEPT OF REMOTE LOCATION FILING
REMOTE LOCATION FILING (RLF) WILL ALLOW A PROGRAM
PARTICIPANT TO FILE ELECTRONICALLY AN ENTRY OF MERCHANDISE
WITH CUSTOMS FROM A LOCATION WITHIN THE UNITED STATES OTHER
THAN AT THE PORT OF ARRIVAL OR LOCATION OF EXAMINATION. DUE
TO THE NATURE OF THIS PROTOTYPE TEST, CERTAIN CUSTOMS
REGULATIONS PERTAINING TO BROKERS PERMITS, SURETY BONDS, AND
THE ENTRY OF MERCHANDISE WILL BE SUSPENDED.
SINCE JUNE OF 1994, THE CUSTOMS REMOTE TEAM HAS SHARED
CUSTOMS RFL CONCEPT THROUGH MANY PUBLIC MEETINGS AND CONCEPT
PAPERS, AND OTHER INFORMATION ON RFL HAS BEEN DISTRIBUTED ON
THE CUSTOMS ELECTRONIC BULLETIN BOARD AND THE CUSTOMS
ADMINISTRATIVE MESSAGE SYSTEM.
CUSTOMS INTENDS TO CONDUCT AT LEAST TWO PROTOTYPES OF
THE RLF COMPONENT OF THE NCAP. THESE TESTS WILL DETERMINE
THE SYSTEM AND OPERATIONAL DESIGN OF THE RLF WHICH WILL
ALLOW ALL FILERS TO PARTICIPATE IN THIS TYPE OF ENTRY
PROCESS AT A NATIONAL LEVEL. AT THIS TIME, HOW THE FINAL
RLF PROGRAM WILL OPERATE IS UNKNOWN. PROTOTYPE PARTICIPANTS
MUST RECOGNIZE THAT THESE ARE TRUE PROTOTYPES TO TEST THE
BENEFITS AND POTENTIAL PROBLEMS OF RLF FOR CUSTOMS, THE
TRADE COMMUNITY, AND OTHER PARTIES IMPACTED BY THIS PROGRAM.
IT IS IMPORTANT TO NOTE THAT TIME AND MONEY SPENT ON THESE
PROTOTYPES MAY NOT CARRY FORWARD TO THE FINAL PROGRAM.
DESCRIPTION OF RLF PROGRAM
CUSTOMS PLANS TO IMPLEMENT RLF ARE BASED ON BLENDING
THE EXPERIENCES OF THE PLANNED REMOTE PROTOTYPES WITH OTHER
CUSTOMS INITIATIVES SUCH AS THE REORGANIZATION, ACS REDESIGN
(ACE), AND TRADE COMPLIANCE PROCESS IMPROVEMENT. THE
CUSTOMS RLF TEAM'S OBJECTIVES ARE:
1) TO WORK WITH THE TRADE COMMUNITY, OTHER AGENCIES,
AND OTHER PARTIES IMPACTED BY THIS PROGRAM IN THE
DESIGN, CONDUCT AND EVALUATION OF A LIMITED
PROTOTYPE TEST OF RLF;
2) TO OBTAIN EXPERIENCE THROUGH PROTOTYPE TESTS OF
REMOTE LOCATION FILING FOR USE IN THE DESIGN OF
OPERATIONAL PROCEDURES, AUTOMATED SYSTEMS, AND
REGULATIONS THAT ARE SUPPORTIVE AND COMPATIBLE
WITH THE CUSTOMS REORGANIZATION, THE TRADE
COMPLIANCE PROCESS IMPROVEMENT, AND THE ACE
REDESIGN; AND
3) TO IMPLEMENT RLF ON A NATIONAL LEVEL AFTER THE
COMPLETION OF THE REORGANIZATION, THE TRADE
COMPLIANCE PROCESS IMPROVEMENT, AND THE ACE
REDESIGN.
THE FIRST RLF PROTOTYPE (PROTOTYPE ONE) WILL COMMENCE
NO SOONER THAN JUNE 1, 1995, AND IS SCHEDULED TO RUN FOR
APPROXIMATELY SIX MONTHS. PROTOTYPE ONE WILL BE CONDUCTED
WITH A VERY LIMITED NUMBER OF PARTICIPANTS AT LIMITED
LOCATIONS. THIS IS DUE TO THE FACT THAT THIS PROTOTYPE WILL
BE CONDUCTED WITH MINIMAL SYSTEM CHANGES REQUIRING CUSTOMS
TO MANUALLY INTERVENE IN TRACKING AND PROCESSING. ALL
PROCEDURES AND PROCESSES WILL BE CLOSELY COORDINATED WITH
ALL SELECTED AND AFFECTED PARTIES. THE INTENT OF THIS
PROTOTYPE IS TO TEST SUCH OPERATIONAL ISSUES AS
COMMUNICATION, CARGO MOVEMENT AND RELEASE, AND SERVICE TO
AND FROM REMOTE LOCATIONS. THIS PROTOTYPE WILL ALSO TEST
FEATURES SUCH AS FILING FROM A REMOTE LOCATION, ALTERNATE
EXAM LOCATION, AND POSSIBLY ENTRY SUMMARY WORKLOAD
DISTRIBUTION.
THE SECOND REMOTE PROTOTYPE (PROTOTYPE TWO) IS
TENTATIVELY SCHEDULED TO COMMENCE NO SOONER THAN JUNE 1,
1996. PROTOTYPE TWO WILL CONTINUE TO EVALUATE OPERATIONAL
IMPACT AND PROCEDURES, AND BEGIN ADDRESSING ADDITIONAL
SYSTEMIC NEEDS. THE WORK COMPLETED BY CUSTOMS TRADE
COMPLIANCE PROCESS IMPROVEMENT TEAMS AND THE AUTOMATED
COMMERCIAL ENVIRONMENT (ACE OR THE ACS REDESIGN), AND
EXPERIENCE GAINED FROM PROTOTYPE ONE WILL BE INCORPORATED
INTO THIS PROTOTYPE. REGULATORY PROVISIONS SUSPENDED
CERTAIN PROVISIONS IN PART 111, PERTAINING TO CUSTOMS
BROKERS, PART 113, PERTAINING TO CUSTOMS BONDS, AND PART
141, PERTAINING TO THE ENTRY OF MERCHANDISE, OF THE CUSTOMS
REGULATIONS (19 CFR PARTS 111, 113, AND 141) WILL BE
SUSPENDED DURING THIS PROTOTYPE TEST TO ALLOW REMOTE FILINGS
BY BROKERS IN DISTRICTS WHERE THEY CURRENTLY DO NOT HOLD
PERMITS, AND TO ALLOW FOR THE MOVEMENT OF CARGO FROM ITS
PORT OF ARRIVAL TO A DESIGNATED EXAMINATION SITE.

II. ELIGIBILITY CRITERIA
NOTE THAT PARTICIPATION IN THIS TESTING WILL NOT
CONSTITUTE CONFIDENTIAL INFORMATION AND THAT LISTS OF
PARTICIPANTS WILL BE MADE AVAILABLE TO THE PUBLIC UPON
WRITTEN REQUEST.
IN ORDER TO QUALIFY FOR FILING FROM A REMOTE LOCATION,
A PROGRAM PARTICIPANT IN THE PROTOTYPE MUST HAVE THE
CAPABILITY TO PROVIDE, ON AN ENTRY-BY-ENTRY BASIS, THE
ELECTRONIC ENTRY OF MERCHANDISE; THE ELECTRONIC ENTRY
SUMMARY OF REQUIRED INFORMATION; THE ELECTRONIC TRANSMISSION
OF INVOICE INFORMATION (ABI/AII OR EDIFACT); AND THE
ELECTRONIC PAYMENT OF DUTIES FEES, AND TAXES (ACH). OTHER
REQUIREMENTS AND CONDITIONS ARE AS FOLLOWS.
1. PARTICIPANTS AND REQUESTED CUSTOMS LOCATIONS MUST
HAVE OPERATIONAL EXPERIENCE WITH THE CUSTOMS
ELECTRONIC INVOICE PROGRAM (EIP) WITH EITHER
ABI/AII OR EDIFACT. LOCATIONS AVAILABLE FOR
PROTOTYPE PARTICIPATION ARE THOSE PORTS CURRENTLY
OPERATION WITH EIP RELEASE AND SUMMARY PROCESSING.
IT IS POSSIBLE THAT ADDITIONAL PORTS MAY BE
AVAILABLE WHEN THE FIRST PROTOTYPE COMMENCES. THE
FOLLOWING ARE LOCATIONS CURRENTLY OPERATIONAL WITH
EIP. (S/P INDICATES SUMMARY PROCESSING LOCATION
AND R/P INDICATES RELEASE PROCESSING LOCATION).

DDPP LOCATION ELECTRONIC PROCESSING STATUS
0101 PORTLAND ME S/P
0106 HOULTON ME R/P, S/P DONE IN 0101
0115 CALAIS ME R/P, S/P DONE IN 0101
0401 BOSTON R/P
0901 BUFFALO S/P
0903 ROCHESTER R/P, S/P DONE IN 0901
1001 NEW YORK
SEAPORT R/P, S/P
1101 PHILADELPHIA R/P, S/P
1102 CHESTER PA R/P, S/P DONE IN 1101
1103 WILMINGTON DE R/P, S/P DONE IN 1101
1108 PHILADELPHIA
AIRPORT R/P, S/P DONE IN 1101
1303 BALTIMORE
SEAPORT R/P, S/P
1401 NORFOLK R/P
1601 CHARLESTON R/P
1703 SAVANNAH R/P
1803 JACKSONVILLE R/P
2002 NEW ORLEANS R/P
2304 LAREDO R/P, S/P
2704 LOS ANGELES R/P, S/P DONE IN TERMINAL ISLAND
2809 SAN FRANCISCO R/P
3001 SEATTLE R/P
3701 MILWAUKEE R/P
3801 DETROIT R/P
3901 CHICAGO R/P
4101 CLEVELAND S/P
4102 CINCINNATI R/P, S/P DONE IN 4101
41## LOUISVILLE R/P, S/P DONE IN 4101
4601 NEWARK R/P, S/P
4701 JFK R/P, S/P
5201 MIAMI R/P, S/P
5203 PORT
EVERGLADES R/P, S/P DONE IN 5201
5206 MIAMI AIRPORT R/P, S/P DONE IN 5201
5301 HOUSTON R/P

2. PARTICIPANTS MUST BE OPERATIONAL ON THE AUTOMATED
CLEARING HOUSE (ACH) 30 DAYS BEFORE PROTOTYPE ONE
COMMENCES;
3. ONLY ENTRY TYPES 01 (CONSUMPTION) AND 11
(INFORMAL) WILL BE ACCEPTED;
4. CARGO RELEASE MUST BE CERTIFIED FROM THE ENTRY
SUMMARY (EI) TRANSACTION WITH THE EXCEPTION OF
IMMEDIATE DELIVERY EXPLAINED IN #5;
5. PARTICIPANTS WILL BE ALLOWED TO FILE IMMEDIATE
DELIVERY RELEASES FOR DIRECT ARRIVAL ROAD AND RAIL
FREIGHT AT THE LAND BORDER (ESSENTIALLY CFR
142.21(A)) WITH USE OF PAPER INVOICES UNDER LINE
RELEASE, BORDER CARGO SELECTIVITY (BCS), OR CARGO
SELECTIVITY (CS). SUBMISSION OF ALL LINE ITEMS AT
THE TIME OF RELEASE WILL BE REQUIRED OF NORTHERN
BORDER FILERS, IF THE RELEASE IS EFFECTED USING
BCS OR CS. IF AN EXAMINATION IS REQUIRED FOR A
LINE RELEASE TRANSACTION, THE FILER MUST SUBMIT
ALL RELEVANT LINE ITEM INFORMATION THROUGH BCS OR
CS. UNDER BCS AND CS, THE EXAMINATION WILL BE
PERFORMED AT THE PORT OF ARRIVAL WITH THE USE OF
PAPER INVOICES. IF THE FILER WISHES THE
EXAMINATION TO BE PERFORMED AT AN ALTERNATE SITE,
FULL ENTRY SUMMARY INFORMATION (EI TRANSACTION)
WITH ELECTRONIC INVOICE MUST BE TRANSMITTED;
6. PARTICIPANTS WILL NOT BE ALLOWED TO FILE AN RLF
AGAINST CARGO THAT HAS BEEN MOVED IN-BOND;
7. PARTICIPANTS WILL BE REQUIRED TO USE OGA
INTERFACES WHERE THEY ARE AVAILABLE; AND
8. IF AN EXAMINATION IS DETERMINED NECESSARY, CARGO
WILL BE EXAMINED AT THE CUSTOMS PORT OF ARRIVAL,
OR, AT CUSTOMS DISCRETION, A FILER'S REQUESTED
DESIGNATED EXAMINATION SITE WHICH WOULD BE A
CUSTOMS PORT WHICH IS AT OR NEAREST THE FINAL
DESTINATION. THIS MOVEMENT OF CARGO TO A
DESIGNATED EXAMINATION PORT WILL BE UNDER THE
IMPORTER'S BOND.
9. A PARTICIPANT MUST MAINTAIN AN AVERAGE OF 1-2
ENTRIES PER DAY THROUGHOUT THE TESTING OF THE
PROTOTYPE.
CUSTOMS WILL WORK WITH PARTICIPANTS TO ENSURE:
1) CUSTOMS CONTACTS AND PROBLEM SOLVING TEAMS ARE
ESTABLISHED.
2) PROCEDURES FOR REMOTE ENTRY AND ENTRY SUMMARY
PROCESSING ARE PREPARED.
3) NOTIFICATION TO THE PARTICIPANT'S CONTACT PERSON
OF THE EXAMINATION SITE IS ARRANGED.

PROTOTYPE ONE APPLICATION
THIS NOTICE REQUESTS IMPORTERS OR BROKERS ON BEHALF OF
IMPORTERS TO VOLUNTARILY APPLY FOR PARTICIPATION IN
PROTOTYPE ONE BY SUBMITTING THE FOLLOWING INFORMATION TO THE
REMOTE FILING TEAM, U.S. CUSTOMS SERVICE, 1301 CONSTITUTION
AVENUE, N.W. ROOM 1322, WASHINGTON, D.C. 20229-0001 ON OR
BEFORE THE DATE SET FORTH IN THE EFFECTIVE DATE PARARGRAPH
AT THE BEGINNING OF THIS NOTICE:
1. IMPORTER NAME AND, IF APPLICABLE, BROKER NAME,
ADDRESS, AND FILER CODE.
2. SUPPLIER NAME, ADDRESS, AND MANUFACTURER'S NUMBER.
3. TYPES OF COMMODITIES TO BE IMPORTED.
4. OTHER AGENCY REQUIREMENTS.
5. PORT(S) OF ARRIVAL.
6. DESIGNATED EXAMINATION SITE(S) (LOCATION NEAREST
THE FINAL DESTINATION).
7. MONTHLY VOLUME ANTICIPATED.
8. REQUESTED ENTRY SUMMARY PROCESSING LOCATION(S), IF
DIFFERENT FROM THE PORT OF ARRIVAL.
9. ELECTRONIC INVOICING PROGRAM STATUS AND PROJECTED
START DATE.
10. ELECTRONIC PAYMENT (ACH) STATUS AND PROJECTED
START DATE.
11. MAIN CONTACT PERSON AND TELEPHONE NUMBER FOR
PARTICIPATION QUESTIONS.
12. ANY COMMENTS ON PROTOTYPE PARTICIPATION.

BASIS FOR PARTICIPANT SELECTION
ELIGIBLE IMPORTERS OR IMPORTERS WITH BROKERS WILL BE
CONSIDERED FOR SELECTION AS PARTICIPANTS IN PROTOTYPE ONE.
CUSTOMS IS LOOKING FOR A VARIETY OF CIRCUMSTANCES AND
PARTICIPANTS IN THIS FIRST PROTOTYPE; HOWEVER, ONLY A SMALL
NUMBER OF PARTICIPANTS WILL BE SELECTED. WE STRESS THAT
THOSE NOT SELECTED FOR PARTICIPATION WILL BE INVITED TO
COMMENT ON THE DESIGN, CONDUCT, AND EVALUATION OF THIS
PROTOTYPE. SELECTION WILL BE BASED ON EIP OPERATIONAL
EXPERIENCE, VOLUME ANTICIPATED, ELECTRONIC ABILITIES, AND
AVAILABLE ELECTRONIC INTERFACES WITH OTHER AGENCY'S IMPORT
REQUIREMENTS. PARTICIPANTS SELECTED WILL BE NOTIFIED BY
MEANS OF THE CUSTOMS ELECTRONIC BULLETIN BOARD AND THE
CUSTOMS ADMINISTRATIVE MESSAGE SYSTEM.

III. TEST EVALUATION CRITERIA
ONCE PARTICIPANTS ARE SELECTED, CUSTOMS AND THE
PARTICIPANTS WILL MEET TO REVIEW ALL PUBLIC COMMENTS
RECEIVED CONCERNING ANY ASPECT OF THE TEST PROGRAM OR
PROCEDURES, FINALIZE PROCEDURES IN LIGHT OF THOSE COMMENTS,
FORM PROBLEM-SOLVING TEAMS, AND ESTABLISH BASELINE MEASURES
AND EVALUATION METHODS AND CRITERIA. AT 90 DAYS AND 180
DAYS AFTER COMMENCEMENT, EVALUATIONS OF THE PROTOTYPE WILL
BE CONDUCTED WITH THE FINAL RESULTS PUBLISHED IN THE FEDERAL
REGISTER AS REQUIRED BY 101.9(B). THE FOLLOWING
EVALUATION METHODS AND CRITERIA HAVE BEEN SUGGESTED.
1. BASELINE MEASUREMENTS WILL BE ESTABLISHED THROUGH
DATAQUERIES AND QUESTIONNAIRES.
2. REPORTS WILL BE RUN THROUGH USE OF DATAQUERY
THROUGHOUT THE PROTOTYPE.
3. QUESTIONNAIRES WILL BE CONDUCTED BEFORE, DURING,
AND AFTER THE PROTOTYPE PERIOD.
PRELIMINARY IDEAS FOR EVALUATION CRITERIA FOR CUSTOMS AND
OTHER GOVERNMENT AGENCIES ARE WORKLOAD IMPACT (WORKLOAD
SHIFTS, CYCLETIME, ETC.), POLICY AND PROCEDURAL
ACCOMMODATION, TRADE COMPLIANCE IMPACT, ALTERNATE EXAM SITE
ISSUES (WORKLOAD SHIFT, COORDINATION/COMMUNICATION, ETC.),
PROBLEM SOLVING, SYSTEM EFFICIENCY, AND THE COLLECTION OF
STATISTICS. CRITERIA IDEAS FOR THE TRADE ARE SERVICE IN
CARGO CLEARANCE AND PROBLEM RESOLUTION, COST BENEFITS,
SYSTEM EFFICIENCY, OPERATIONAL EFFICIENCY, AND OTHER ITEMS
IDENTIFIED BY THE PARTICIPANT GROUP.

IN CONCLUSION, IT IS EMPHASIZED THAT IF A COMPANY IS
INTERESTED IN FILING REMOTELY, THEY MUST FIRST BE
OPERATIONAL WITH THE ELECTRONIC INVOICING PROGRAM (EIP).
FOR INFORMATION ON THE ELECTRONIC INVOICING PROGRAM (EIP),
PLEASE CONTACT YOUR ABI CLIENT REPRESENTATIVE.

DATED: APRIL 6, 1995

/S/
ASSISTANT COMMISSIONER,
OFFICE OF FIELD OPERATIONS