CSMS Message: 95-001264

NCAP PROTOTYPE REGARDING REMOTE LOCATION FILING
PROTOTYPE TWO STATUS
DECEMBER 15, 1995

IN THE SPIRIT OF THE NPR AND CUSTOMS MODERNIZATION ACT, WE ARE
AGAIN PROVIDING ADVANCE INFORMATION ON THE REMOTE LOCATION FILING
PROGRAM AND ITS PLANNED PROTOTYPES. THIS INFORMATION IS AVAILABLE TO
THE TRADE COMMUNITY ON THE CUSTOMS ELECTRONIC BULLETIN BOARD AND THE
CUSTOMS ADMINISTRATIVE MESSAGE SYSTEM. ALTHOUGH, REQUESTS FOR
PARTICIPATION CANNOT BE CONSIDERED UNTIL THE FORMAL PUBLIC NOTICE IS
PUBLISHED IN THE FEDERAL REGISTER, THIS NOTICE WILL ALLOW FILERS TO
BEGIN EXAMINING THEIR CURRENT BUSINESS PRACTICES TO DETERMINE WHETHER
OR NOT THEY WOULD BE INTERESTED IN OR CAPABLE OF PARTICIPATING IN THE
SECOND REMOTE LOCATION FILING TEST.

I. BACKGROUND

THE NATIONAL CUSTOMS AUTOMATION PROGRAM (NCAP) PROVIDES FOR REMOTE
LOCATION FILING (SECTION 414) WHICH PERMITS QUALIFYING ENTRY FILERS
(IMPORTERS AND THEIR BROKERS) TO ELECTRONICALLY FILE DATA WITH CUSTOMS
FROM ANY PLACE IN THE UNITED STATES REGARDLESS OF WHERE THE MERCHANDISE
ARRIVES OR IS EXAMINED.

IN APRIL 1994, THE REMOTE TEAM WAS ESTABLISHED BY THE MOD ACT
STEERING COMMITTEE. THIS CROSS-SECTIONAL TEAM HAS BEEN INSTRUMENTAL IN
PLANNING REMOTE TESTS TO PAVE THE WAY FOR FUTURE IMPLEMENTATION. IN
ORDER TO MEET THE TEAM'S OBJECTIVES OF WORKING WITH THE TRADE AND OTHER
IMPACTED PARTIES TO INTEGRATE REMOTE WITH OTHER MAJOR CUSTOMS
INITIATIVES, THIS TEAM HAS SINCE EXPANDED TO INCLUDE VARIOUS CUSTOMS
HEADQUARTERS, FIELD AND UNION REPRESENTATIVES AS WELL AS OTHER
GOVERNMENT AGENCIES AND, OF COURSE, PARTICIPATING IMPORTERS, BROKERS,
AND CARRIERS.

ON JUNE 19, 1995, THE FIRST TEST OF REMOTE LOCATION FILING BEGAN
IN ACCORDANCE WITH THE TEST REGULATIONS (CR 101.9). THIS TEST HAS BEEN
EXTENDED TO RUN THROUGH TO THE SECOND TEST SCHEDULED TO COMMENCE NO
SOONER THAN JANUARY 1, 1997. THIS EXTENSION AND ADDITIONAL PARTICIPANT
REQUESTS WILL BE ANNOUNCED FORMALLY IN THE FEDERAL REGISTER IN JANUARY
1996. THE LESSONS LEARNED FROM THE FIRST TEST WILL BE INCORPORATED
INTO REMOTE PROTOTYPE TWO UNDER THE NCAP PROTOTYPE. THE NCAP PROTOTYPE
WILL AFFORD THE REMOTE TEAM THE OPPORTUNITY TO BECOME INVOLVED IN THE
DEVELOPMENT AND TESTING OF REMOTE UNDER THE AUTOMATED COMMERCIAL
ENVIRONMENT (ACE) SYSTEM AS WELL AS WITH OTHER NCAP PROVISIONS AND THE
TRADE COMPLIANCE PROCESS CONCEPTS.

THESE PROTOTYPES ARE THE STARTING POINT TO ACCOMPLISH REMOTE
OBJECTIVES WHICH ARE CONSISTENT WITH THE NCAP PROVISIONS OF THE MOD ACT
LEGISLATION AND IN SUCH A MANNER THAT IT WILL SUPPORT THE AGENCY'S
TRADE GOAL TO MAXIMIZE TRADE COMPLIANCE THROUGH A BALANCED PROGRAM OF
INFORMED COMPLIANCE, TARGETED ENFORCEMENT ACTIONS, AND FACILITATION OF
COMPLYING CARGO.

II. REMOTE TWO

THE SECOND REMOTE PROTOTYPE IS SCHEDULED TO COMMENCE NO SOONER
THAN JANUARY 1, 1997, AND RUN FOR APPROXIMATELY SIX MONTHS. PROTOTYPE
TWO WILL CONTINUE TO EVALUATE OPERATIONAL IMPACT AND PROCEDURES, AND
BEGIN ADDRESSING SYSTEMIC NEEDS. THE WORK COMPLETED BY TRADE COMPLIANCE
PROCESS IMPROVEMENT TEAMS AND ACE, AND EXPERIENCE GAINED FROM PROTOTYPE
ONE WILL BE INCORPORATED INTO THIS PROTOTYPE. PROTOTYPE TWO WILL
TEST FEATURES SUCH AS THE CUSTOMS IMPORT DECLARATION AS WELL AS ENTRY
SUMMARY WORKLOAD ASSIGNMENT, RELEASE FUNCTION AND MESSAGE AUTOMATION TO
AND FROM FILERS AND CARRIERS, AND RETENTION AND HISTORY OF CORRECTED OR
UPDATED DATA.

IN ORDER TO QUALIFY FOR FILING FROM A REMOTE LOCATION, THE NCAP
LEGISLATION REQUIRES THAT A PROGRAM PARTICIPANT MUST HAVE THE CAPABILITY
TO ELECTRONICALLY PROVIDE, ON AN ENTRY-BY-ENTRY BASIS,

- THE ENTRY OF MERCHANDISE;
- THE ENTRY SUMMARY OF REQUIRED INFORMATION;
- THE TRANSMISSION OF INVOICE INFORMATION
(AII OR EDIFACT);
- AND THE PAYMENT OF DUTIES FEES, AND TAXES (ACH).

CUSTOMS IS NOT PERMITTED TO GRANT ANY EXEMPTION OR WAIVER FROM
THESE CORE ENTRY INFORMATION REQUIREMENTS. THIS ENSURES THAT ALL
PARTIES ARE TREATED EQUALLY UNDER NCAP. ADDITIONAL REQUIREMENTS WILL
BE BASED ON OPERATIONAL AND SYSTEM LIMITATIONS AND TRADE COMPLIANCE
PROCESSES.

PREPARATION OF THIS TEST WILL INVOLVE CLOSE COORDINATION WITH ALL
IMPACTED TRADE, OTHER GOVERNMENT AGENCIES, AND CUSTOMS PARTIES IN
SYSTEM AND PROCEDURAL DEVELOPMENT. THIS TEAM WILL CONTINUE TO JOINTLY
TEST REMOTE LOCATION FILING WITH THE TRADE AND OTHER AGENCIES TO BE
RUN UNDER THE NCAP PROTOTYPE UMBRELLA.

IT IS IMPORTANT TO NOTE THAT PARTICIPANTS SELECTED FOR REMOTE
PROTOTYPE TWO WILL BE DONE SO UNDER SEPARATE SELECTION CRITERIA TO BE
OUTLINED IN A NCAP PROTOTYPE FEDERAL REGISTER NOTICE. THEREFORE,
REMOTE PROTOTYPE ONE PARTICIPANTS MAY OR MAY NOT QUALIFY TO VOLUNTEER
UNDER REMOTE PROTOTYPE TWO.

III. REQUIREMENTS

LEGISLATIVE REQUIREMENTS WILL REMAIN. UTILIZATION OF ALL
AVAILABLE AUTOMATED SYSTEMS (I.E., ABI OR EDIFACT, AMS, OTHER
GOVERNMENT AGENCY INTERFACES, AND ACH) WILL BE REQUIRED. ADDITIONAL
REQUIREMENTS WILL BE ANNOUNCED IN A FEDERAL REGISTER NOTICE TO BE
PUBLISHED IN JANUARY 1996.

SELECTION OF PARTICIPANTS

A FEDERAL REGISTER NOTICE WILL BE PUBLISHED IN ACCORDANCE
WITH CR 101.9. IT IS OUR HOPE THAT THE NUMBER OF REMOTE TEST FILERS
WILL INCREASE UNDER THE SECOND REMOTE TEST. THE ABILITY TO INSTALL
APPROPRIATE EQUIPMENT FOR RUNNING THE PROGRAM IN THE ACE MAY BE A
LIMITING FACTOR. IT IS OUR HOPE THAT EQUIPMENT WILL BE INSTALLED
IN THE CURRENT REMOTE SITES BY JANUARY 1997. UNTIL ADDITIONAL SITES
RECEIVE EQUIPMENT, THE CURRENT AUTOMATED ENVIRONMENT WILL BE MAINTAINED
(UNDER THE FIRST TEST) UNTIL OTHER PORTS CAN BE INSTALLED WITH
APPROPRIATE EQUIPMENT AND PROVIDED WITH TRAINING.

PORTS AVAILABLE

IN ADDITION TO THE CURRENT REMOTE TEST PORTS, THE TRADE
COMPLIANCE DIVISION IS WORKING WITH ACE TO ADD OTHER PORTS BASED ON
THE CURRENT REMOTE ACTIVITY, PROJECTED VOLUME AT NEW PORTS, AND OUR
ABILITY TO PROVIDE APPROPRIATE TRAINING AND EQUIPMENT REQUIRED UNDER
ACE. HERE IS A LIST OF THE PORTS CURRENTLY OPERATIONAL WITH THE REMOTE
UNDER PROTOTYPE ONE. POA INDICATES PORT OF ARRIVAL (OR ENTRY
PROCESSING PORT), ESP INDICATES SUMMARY PROCESSING LOCATION, AND DES
INDICATES DESIGNATED EXAMINATION SITE.

DDPP LOCATION ELECTRONIC PROCESSING STATUS

0901 BUFFALO ESP
0903 ROCHESTER DES, ESP DONE IN 0901
1001 NEW YORK POA, DES, ESP
(SEAPORT)
1303 BALTIMORE POA, DES, ESP
2704 LOS ANGELES POA, DES, ESP
4601 NEWARK POA, DES, ESP
4701 JFK POA, DES, ESP
5501 DALLAS DES

DEPENDENT PROGRAMS

AS THE REMOTE TEAM HAS ALWAYS MAINTAINED, IT IS VERY
IMPORTANT THAT THE TEAM KEEP ACE, THE REORGANIZATION AND THE TRADE
COMPLIANCE PROCESSES IN MIND AS THEY HAVE DIRECT IMPACT ON HOW
REMOTE IS IMPLEMENTED. THE REMOTE TEAM MUST CONTINUE TO COMMUNICATE
IDEAS AND WHAT HAS BEEN LEARNED FROM THESE TESTS. THE REMOTE TEAM WILL
ALSO EXPECT THAT THESE GROUPS WILL INTERFACE WITH THE TEAM ON A
REGULAR BASIS TO BE CERTAIN THAT THE PROGRAM IS IMPLEMENTED PROPERLY.

CUSTOMS COMMITMENT

WE HAVE COMMITTED TO CONDUCT REMOTE PROTOTYPE TWO UNDER ACE.
IN DOING THIS, THE IMPLEMENTATION DATE OF THIS SECOND TEST WAS
DELAYED. WE MUST MAKE THE COMMITMENT TO DEVOTE THE OPERATIONAL AND
SYSTEM RESOURCES TO MAKE SURE THIS TEST BEGINS JANUARY 1997. MANY
CUSTOMS OFFICES ARE READY TO WORK TOGETHER WITH THE TRADE TO DESIGN,
PROGRAM, AND TEST BOTH ACS AND ACE SYSTEMS, DEVELOP PROCEDURES, AND
CONDUCT NECESSARY TRAINING IN ORDER TO MEET THIS DEADLINE.

CUSTOMS AND THE TRADE HAVE ALSO COMMITTED TO WORKING IN
PARTNERSHIP TO COOPERATIVELY DEVELOP SYSTEM AND PROCEDURAL REQUIREMENTS
WITH ALL IMPACTED PARTIES. THIS TEAM WILL CONTINUE TO JOINTLY TEST
REMOTE LOCATION FILING WITH THE TRADE AND OTHER AGENCIES UNDER THE
SECOND REMOTE TEST.

ADDITIONAL INFORMATION

IF YOU HAVE ANY QUESTIONS ON THE INFORMATION CONTAINED IN THIS NOTICE,
CONTACT LINDA LEBARON IN BUFFALO, NY AT 716-626-0400 EXT. 204, OR RUSS
LANOUETTE IN WASHINGTON, DC AT 202-927-0322.