CSMS Message: 96-001067

TO : ALL ABI BROKERS.

FROM : TROY RILEY

SUBJECT : RLF FED REG NOTICE

DATE : 12/02/96

TO: ALL INTERESTED PARTIES -> BROKERS, IMPORTING PUBLIC
SUBJECT: REMOTE LOCATION FILING

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 A
SECOND PROTOTYPE TEST OF 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,
DESCRIBES THE BASIS FOR SELECTING PARTICIPANTS, AND
ESTABLISHES THE PROCESS FOR DEVELOPING EVALUATION CRITERIA.
TO PARTICIPATE IN THE PROTOTYPE TEST, THE NECESSARY
INFORMATION, AS OUTLINED IN THIS NOTICE, MUST BE FILED WITH
CUSTOMS AND APPROVAL GRANTED. IT IS IMPORTANT TO NOTE THAT
RESOURCES EXPENDED BY THE TRADE AND CUSTOMS ON THESE
PROTOTYPES MAY NOT CARRY FORWARD TO THE FINAL PROGRAM.

EFFECTIVE DATE: THE TEST OF THE SECOND PROTOTYPE WILL
COMMENCE NO EARLIER THAN JANUARY 1, 1997, AND WILL RUN FOR
APPROXIMATELY ONE YEAR, AND MAY BE EXTENDED. COMMENTS
CONCERNING ANY ASPECT OF THE REMOTE FILING PROTOTYPE TEST
MUST BE RECEIVED ON OR BEFORE DECEMBER 30,1996.

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

FOR FURTHER INFORMATION CONTACT:

FOR SYSTEMS OR AUTOMATION ISSUES: JOSEPH PALMER
(202) 927-0173, OR PATRICIA WELTER (202) 927-0775.

FOR OPERATIONAL OR POLICY ISSUES: TROY RILEY
(202) 927-0256, OR BONNIE BRIGMAN (202) 927-0294.

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). THESE 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
(SECTION 414). REMOTE LOCATION FILING (RLF) WILL ALLOW A
PARTICIPANT TO FILE ELECTRONICALLY A FORMAL OR INFORMAL
CONSUMPTION ENTRY WITH CUSTOMS FROM A LOCATION WITHIN THE
UNITED STATES OTHER THAN THE PORT OF ARRIVAL(POA) OR THE
DESIGNATED EXAM SITE (DES). 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).

SINCE JUNE 1994, THE CUSTOMS REMOTE TEAM HAS SHARED THE
CUSTOMS RLF CONCEPT THROUGH MANY PUBLIC MEETINGS AND CONCEPT
PAPERS, AND POSTED INFORMATION ON THE CUSTOMS ELECTRONIC
BULLETIN BOARD AND THE CUSTOMS ADMINISTRATIVE MESSAGE
SYSTEM. PURSUANT TO 101.9, CUSTOMS REGULATIONS, CUSTOMS
HAS BEEN TESTING THE RLF CONCEPT. ON APRIL 6, 1995, CUSTOMS
ANNOUNCED IN THE FEDERAL REGISTER (60 FR 17605) ITS PLAN TO
CONDUCT THE FIRST OF AT LEAST TWO PROTOTYPE TESTS REGARDING
RLF. THE FIRST TEST (PROTOTYPE ONE) BEGAN ON JUNE 19, 1995.
ON FEBRUARY 27, 1996, CUSTOMS ANNOUNCED IN THE FEDERAL
REGISTER (61 FR 7300) THAT IT WAS PERMITTING AN EXTENSION
AND EXPANSION OF THE RLF PROTOTYPE ONE UNTIL THE
IMPLEMENTATION OF REMOTE PROTOTYPE TWO. IN TODAY'S
DOCUMENT, CUSTOMS IS ANNOUNCING ITS PLAN TO CONCLUDE THE
FIRST PROTOTYPE TEST ON DECEMBER 31, 1996, AND CONDUCT A
SECOND PROTOTYPE TEST OF RLF COMMENCING NO EARLIER THAN
JANUARY 1, 1997. THE FIRST REMOTE LOCATION PROTOTYPE TEST
WAS OFFERED IN THE AUTOMATED COMMERCIAL SYSTEM (ACS).
ALTHOUGH THE SECOND REMOTE PROTOTYPE TEST WAS ORIGINALLY
SCHEDULED TO BE TESTED IN THE AUTOMATED COMMERCIAL
ENVIRONMENT (ACE), THE SUCCESS OF PROTOTYPE ONE PRECIPITATED
THIS SECOND TEST UNDER THE AUTOMATED COMMERCIAL SYSTEM (ACS)
WITH A LARGER PARTICIPANT POOL.

THE FIRST RLF PROTOTYPE (PROTOTYPE ONE) WILL CONCLUDE
DECEMBER 31, 1996. PROTOTYPE ONE WAS CONDUCTED WITH A VERY
LIMITED NUMBER OF PARTICIPANTS AT LIMITED LOCATIONS. IT WAS
CONDUCTED WITH MINIMAL SYSTEM CHANGES THEREBY REQUIRING
CUSTOMS TO INTERVENE MANUALLY IN TRACKING AND PROCESSING.
ALL PROCEDURES AND PROCESSES WERE CLOSELY COORDINATED WITH
ALL SELECTED AND AFFECTED PARTIES. THE INTENT OF PROTOTYPE
ONE WAS TO TEST SUCH OPERATIONAL ISSUES AS COMMUNICATION,
CARGO MOVEMENT AND RELEASE, AND SERVICE TO AND FROM REMOTE
LOCATIONS. PROTOTYPE ONE TESTED FEATURES SUCH AS FILING
FROM A REMOTE LOCATION, ALTERNATE EXAM LOCATION, AND ENTRY
SUMMARY WORKLOAD DISTRIBUTION.

ADDITIONAL PROTOTYPES OF RLF ARE BEING DEVELOPED BY CUSTOMS
TO DETERMINE THE SYSTEMIC AND OPERATIONAL DESIGN OF THE
FINAL RLF PROGRAM WHICH WILL ALLOW ALL FILERS TO PARTICIPATE
IN THIS TYPE OF ENTRY PROCESS AT A NATIONAL LEVEL.
PROTOTYPE PARTICIPANTS MUST RECOGNIZE THAT THESE PROTOTYPES
TEST THE BENEFITS AND POTENTIAL PROBLEMS OF RLF FOR CUSTOMS,
THE TRADE COMMUNITY, AND OTHER PARTIES IMPACTED BY THIS
PROGRAM.

DESCRIPTION OF RLF PROGRAM

THE RLF PROGRAM WILL BE DETERMINED BY THE EXPERIENCES OF THE
PLANNED REMOTE PROTOTYPES AND WITH OTHER CUSTOMS INITIATIVES
SUCH AS THE REORGANIZATION, AUTOMATED COMMERCIAL ENVIRONMENT
(ACE), AND TRADE COMPLIANCE REDESIGN. 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 SECOND
PROTOTYPE TEST OF RLF;
2) TO OBTAIN EXPERIENCE THROUGH PROTOTYPE TESTS OF
RLF FOR USE IN THE DESIGN OF OPERATIONAL
PROCEDURES, AUTOMATED SYSTEMS, AND REGULATIONS AND
3) TO IMPLEMENT RLF ON A NATIONAL LEVEL IN
CONJUNCTION WITH THE TRADE COMPLIANCE REDESIGN,
AND THE AUTOMATED COMMERCIAL ENVIRONMENT.

DESCRIPTION OF PROPOSED TEST

THE SECOND REMOTE PROTOTYPE TEST (PROTOTYPE TWO) IS
SCHEDULED TO COMMENCE NO SOONER THAN JANUARY 1, 1997, AND
WILL RUN UNTIL DECEMBER 31, 1997, UNLESS CUSTOMS EXERCISES
ITS OPTION TO EXTEND THE TEST AN ADDITIONAL YEAR. PROTOTYPE
TWO WILL EVALUATE THE OPERATIONAL IMPACT AND PROCEDURES FOR
A LARGER PARTICIPANT BASE, TESTING FILING FROM A REMOTE
LOCATION, AND ALTERNATE LOCATION EXAMINATIONS. PROTOTYPE
TWO WILL NOT OFFER THE ENTRY SUMMARY WORKLOAD DISTRIBUTION
PART OF RLF AS TESTED IN PROTOTYPE ONE.

REGULATORY PROVISIONS SUSPENDED

CERTAIN PROVISIONS IN PART 111, AND PART 141, OF THE CUSTOMS
REGULATIONS WILL BE SUSPENDED DURING THIS PROTOTYPE TEST TO
ALLOW REMOTE FILING BY BROKERS IN PORTS (BROKER DISTRICTS)
PER 60 FR 187, PAGES 49971-49974, 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.

ELIGIBILITY CRITERIA

NOTE THAT PARTICIPATION IN RLF PROTOTYPE TWO IS NOT
CONFIDENTIAL, AND THAT LISTS OF PARTICIPANTS WILL BE MADE
AVAILABLE TO THE PUBLIC.

TO QUALIFY, A PARTICIPANT MUST HAVE PROVEN CAPABILITY TO
PROVIDE ELECTRONICALLY, ON AN ENTRY-BY-ENTRY BASIS, THE
FOLLOWING: ENTRY; ENTRY SUMMARY; INVOICE INFORMATION USING
THE ELECTRONIC INVOICE PROGRAM (EIP); AND PAYMENT OF DUTIES,
FEES, AND TAXES THROUGH THE AUTOMATED CLEARING HOUSE (ACH).

THE FOLLOWING ADDITIONAL REQUIREMENTS AND CONDITIONS APPLY.

1. THE REQUESTED CUSTOMS LOCATIONS MUST HAVE
OPERATIONAL EXPERIENCE WITH THE CUSTOMS ELECTRONIC
INVOICE PROGRAM (EIP), AND HAVE RECEIVED RLF
TRAINING.

RLF TRAINED LOCATIONS

THE FOLLOWING ARE LOCATIONS CURRENTLY OPERATIONAL UNDER
THE RLF PROTOTYPE ONE TEST: (POA INDICATES PORT OF
ARRIVAL, AND DES INDICATES DESIGNATED EXAMINATION
SITE).

DDPP LOCATION RLF STATUS
0712 CHAMPLAIN-ROUSES POINT POA, DES
0901 BUFFALO POA, DES
0903 ROCHESTER DES
090# UTICA\SYRACUSE POA, DES
1001 NY SEAPORT POA, DES
1303 BALTIMORE POA, DES
230# LAREDO\EAGLE PASS POA, DES
2704 LOS ANGELES POA, DES
3801 DETROIT POA, DES
3802 PORT HURON POA, DES
4601 NEWARK POA, DES
4701 JFK POA, DES
5501 DALLAS DES

AFTER THE PROTOTYPE BEGINS, ADDITIONAL PORTS THAT ARE
OPERATIONAL WITH EIP RELEASE AND SUMMARY PROCESSING
WILL BE TRAINED IN RLF PROCESSING IF THERE IS
SIGNIFICANT INTEREST.

EIP LOCATIONS

THE FOLLOWING LOCATIONS ARE CURRENTLY OPERATIONAL WITH
EIP, AND WOULD REQUIRE APPROPRIATE RLF TRAINING TO
BECOME ELIGIBLE FOR PARTICIPATION AS A POA, DES, OR
BOTH.

SP INDICATES AN ENTRY SUMMARY PROCESSING LOCATION
WHICH COULD BE ELIGIBLE AS A POA. RP INDICATES A
RELEASE PROCESSING LOCATION, WHICH COULD BE ELIGIBLE AS
A DES.

DDPP LOCATION EIP STATUS
0101 PORTLAND ME SP
0106 HOULTON ME RP
0115 CALAIS ME RP
0401 BOSTON RP SP
0901 BUFFALO RP SP
0903 ROCHESTER RP
1001 NEW YORK SEAPORT RP, SP
1101 PHILADELPHIA RP, SP
1102 CHESTER PA RP
1103 WILMINGTON DE RP
1108 PHILADELPHIA ARPRT RP
1303 BALTIMORE SEAPORT RP, SP
1401 NORFOLK RP SP
1601 CHARLESTON RP
1703 SAVANNAH RP
1803 JACKSONVILLE RP
2002 NEW ORLEANS RP
2304 LAREDO RP, SP
2704 LOS ANGELES RP, SP
2720 LOS ANGELES ARPRT RP, SP
2809 SAN FRANCISCO RP
3001 SEATTLE RP
3701 MILWAUKEE RP
3801 DETROIT RP SP
3901 CHICAGO RP
4101 CLEVELAND SP
4102 CINCINNATI RP
4115 LOUISVILLE RP
4601 NEWARK RP, SP
4701 JFK RP, SP
5201 MIAMI RP, SP
5203 PORT EVERGLADES RP
5206 MIAMI AIRPORT RP
5301 HOUSTON RP

2. PARTICIPANTS MUST BE OPERATIONAL ON THE AUTOMATED
CLEARING HOUSE (ACH) 30 DAYS BEFORE APPLYING FOR
PROTOTYPE TWO.
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 USING PAPER INVOICES
UNDER LINE RELEASE, BORDER CARGO SELECTIVITY
(BCS), OR CARGO SELECTIVITY (CS). THIS MUST BE
DONE IN ACCORDANCE WITH 19 CFR 142.21(A).
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 USING 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
INVOLVING CARGO THAT HAS ALREADY BEEN MOVED USING
IN-BOND PROCEDURES.
7. PARTICIPANTS WILL BE REQUIRED TO USE OTHER
GOVERNMENT AGENCY (OGA) INTERFACES WHERE
AVAILABLE.
8. WHEN NECESSARY, CARGO WILL BE EXAMINED AT THE
CUSTOMS PORT OF ARRIVAL, OR, AT CUSTOMS
DISCRETION, A FILER'S REQUESTED DESIGNATED
EXAMINATION SITE (DES), WHICH MUST BE THE CUSTOMS
PORT NEAREST THE FINAL DESTINATION. THE
SCHEDULING (APPROVAL) OF MERCHANDISE FOR
EXAMINATION AT A DES THAT IS NOT AT THE PORT OF
ARRIVAL WILL BE CONSIDERED A CONDITIONAL RELEASE
UNDER PERMIT THAT AUTOMATICALLY OBLIGATES THE
IMPORTER'S BOND PURSUANT TO 19 CFR 113.62 FOR AN
IMMEDIATE REDELIVERY TO THE DES. THIS FEDERAL
REGISTER NOTICE ADVISES THE IMPORTER OF RECORD FOR
SUCH MERCHANDISE THAT THIS MOVEMENT IS A
REDELIVERY AND HE\SHE WILL NOT RECEIVE AN
INDIVIDUAL NOTICE OF REDELIVERY, CUSTOMS FORM
4647, AND THAT THE REDELIVERY CLAUSE OF THE
IMPORTERS BOND IS AUTOMATICALLY TRIGGERED WHENEVER
CUSTOMS EXAMINES THE MERCHANDISE AT A DES THAT IS
NOT AT THE PORT OF ARRIVAL.
9. IF A NOTICE OF REDELIVERY IS NOT COMPLIED WITH, OR
DELIVERY TO UNAUTHORIZED LOCATIONS, OR DELIVERY TO
THE CONSIGNEE WITHOUT CUSTOMS PERMISSION OCCURS,
THE OBLIGORS AGREE TO PAY LIQUIDATED DAMAGES IN
THE AMOUNT SPECIFIED PURSUANT TO THE BOND IN 19
CFR 113.62 (F).

CUSTOMS WILL WORK WITH ALL PARTICIPANTS TO ENSURE THAT:

1) CUSTOMS CONTACTS AND PROBLEM SOLVING TEAMS ARE
ESTABLISHED, AND
2) PROCEDURES FOR REMOTE ENTRY AND ENTRY SUMMARY
PROCESSING ARE PREPARED.

PROTOTYPE TWO APPLICATIONS

THIS NOTICE SOLICITS APPLICATIONS FOR PARTICIPATION IN
REMOTE LOCATION FILING PROTOTYPE TWO. THERE ARE TWO
DISTINCT APPLICATION PROCEDURES, WHICH DEPEND UPON THE
STATUS OF THE APPLICANT. ONE PROCESS APPLIES TO IMPORTERS
AND TO BROKERS ACTING ON BEHALF OF THEIR CLIENTS. THE OTHER
PROCESS IS FOR BROKERS APPLYING ON THEIR OWN BEHALF.

ALL APPLICATIONS MUST INITIALLY BE SUBMITTED TO THE
U.S. CUSTOMS SERVICE, 1301 CONSTITUTION AVENUE, N.W. ROOM
1322, WASHINGTON, D.C. 20229-0001. APPLICATIONS WILL BE
ACCEPTED UP TO 30 DAYS BEFORE THE CLOSE OF PROTOTYPE TWO.

IMPORTERS \ BROKERS ON BEHALF OF CLIENTS:

THESE APPLICATIONS MUST BE SUBMITTED TO THE
U.S. CUSTOMS HEADQUARTERS (ADDRESS CITED ABOVE) WITH
THE FOLLOWING INFORMATION:

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. ELECTRONIC INVOICING PROGRAM STATUS AND STARTING
DATE;
9. ELECTRONIC PAYMENT (ACH) STATUS AND STARTING DATE;
10. MAIN CONTACT PERSON AND TELEPHONE NUMBER.

BROKERS AS APPLICANTS:

THIS APPLICATION PROCESS WILL BE DONE IN TWO STEPS.
DURING THE FIRST STEP THE BROKER MUST SUBMIT THE FOLLOWING
INFORMATION TO THE U.S. CUSTOMS HEADQUARTERS (ADDRESS CITED
ABOVE):

1. BROKER NAME, ADDRESS, FILER CODE AND IRS#;
2. EXPERIENCE WITH EIP;
3. SITES FROM WHICH THE BROKER WILL BE TRANSMITTING
THE ELECTRONIC INFORMATION;
4. TYPE OF PROTOCOL: AII, EDIFACT OR BOTH;
5. POINT OF CONTACT.

ONCE A BROKER HAS RECEIVED WRITTEN APPROVAL FROM
U.S. CUSTOMS HEADQUARTERS TO PROCEED WITH THE SECOND STEP OF
THE APPLICATION PROCESS, THE BROKER WILL SUBMIT THE
FOLLOWING INFORMATION TO THE PORT DIRECTOR(S) OVERSEEING
EACH REQUESTED POA AND DES LOCATION FOR EACH CLIENT
(IMPORTER):

1. PARTICIPATING CLIENT NAME AND IMPORTER NUMBER;
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) LOCATED NEAREST THE
FINAL DESTINATION(S);
7. MONTHLY ENTRY VOLUME ANTICIPATED;
8. ELECTRONIC INVOICING PROGRAM STATUS AND STARTING
DATE;
9. ELECTRONIC PAYMENT (ACH) STATUS AND STARTING DATE;
10. MAIN CONTACT PERSON AND TELEPHONE NUMBER OF FILER.

BASIS FOR PARTICIPANT SELECTION

THE BASIS FOR APPLICATIONS APPROVED BY CUSTOMS HEADQUARTERS
WILL BE EIP OPERATIONAL EXPERIENCE, ELECTRONIC ABILITIES,
AVAILABLE ELECTRONIC INTERFACES WITH OTHER AGENCY'S IMPORT
REQUIREMENTS, AND OPERATIONAL LIMITATIONS.
THE BASIS FOR APPLICATIONS BEING APPROVED OR DENIED BY THE
PORT DIRECTOR(S) WILL INVOLVE ISSUES SUCH AS IMPACT ON
AVAILABLE RESOURCES, COMMODITY REQUIREMENTS AND IF THE PORT
HAS BEEN TRAINED IN EIP\RLF.

FOR BROKERS APPLYING ON THEIR OWN BEHALF, THE PORT DIRECTOR
HAS 10 WORKING DAYS AFTER THE RECEIPT OF THE SECOND STEP IN
THE APPLICATION PROCESS TO APPROVE OR DENY THE APPLICATION.
WRITTEN APPROVAL OR DENIAL OF THE SECOND STEP OF THE BROKER
APPLICATION PROCESS WILL BE SENT TO THE APPLICANT FROM THE
PORT DIRECTOR. IF THE PORT DIRECTOR DENIES THE SECOND STEP
OF THE BROKER APPLICATION, THAT DENIAL IS EFFECTIVE FOR 10
WORKING DAYS. AFTER THAT, A NEW REQUEST MAY BE SUBMITTED TO
THE PORT DIRECTOR AT THE PORT OF ARRIVAL AND THE DESIGNATED
EXAMINATION SITE. IF THE APPLICANT DOES NOT RECEIVE A REPLY
FROM THE PORT DIRECTOR WITHIN 10 WORKING DAYS FROM THE DATE
OF SUBMISSION, THE APPLICATION SHOULD BE CONSIDERED DENIED.
THOSE APPLICANTS NOT SELECTED FOR PARTICIPATION BY
U.S. CUSTOMS HEADQUARTERS WILL BE SENT A LETTER OF DENIAL.
THEY WILL, HOWEVER, BE INVITED TO COMMENT ON THE DESIGN,
CONDUCT, AND EVALUATION OF THIS PROTOTYPE.

CURRENT REMOTE PROTOTYPE ONE PARTICIPANTS WHO WISH TO APPLY
ARE REQUIRED TO SUBMIT A LETTER REQUESTING THE CONTINUATION
OF THEIR PARTICIPATION UNDER PROTOTYPE TWO. PARTICIPANTS
SELECTED WILL BE NOTIFIED BY MEANS OF THE CUSTOMS ELECTRONIC
BULLETIN BOARD, THE CUSTOMS ADMINISTRATIVE MESSAGE SYSTEM
AND IN WRITING.

DISMISSAL FROM PROTOTYPE TWO:

IF A FILER ATTEMPTS TO SUBMIT DATA RELATING TO RESTRICTED
MERCHANDISE OR MERCHANDISE SUBJECT TO QUOTA, ANTI-DUMPING
DUTIES, COUNTERVAILING DUTIES, OR OTHER NON-ELIGIBLE DATA
THROUGH THE ELECTRONIC INVOICE PROGRAM, THE FILER MAY BE
EXPELLED FROM THE PROGRAM, PREVENTED FROM PARTICIPATION IN
FUTURE RLF PROTOTYPES, AND MAY BE SUBJECT TO PENALTIES UNDER
SECTION 592, TARIFF ACT OF 1930, AS AMENDED (19 U.S.C.
1592).

III. TEST EVALUATION CRITERIA

ONCE PARTICIPANTS ARE SELECTED, CUSTOMS AND THE PARTICIPANTS
WILL MEET PUBLICLY OR IN AN ELECTRONIC FORUM TO REVIEW
COMMENTS RECEIVED CONCERNING THE METHODOLOGY OF THE TEST
PROGRAM OR PROCEDURES, COMPLETE PROCEDURES IN LIGHT OF THOSE
COMMENTS, AND ESTABLISH BASELINE MEASURES AND EVALUATION
METHODS AND CRITERIA. EVALUATIONS OF THE PROTOTYPE WILL BE
CONDUCTED AND THE FINAL RESULTS WILL BE PUBLISHED IN THE
FEDERAL REGISTER AS REQUIRED BY 101.9(B), CUSTOMS
REGULATIONS.

THE FOLLOWING EVALUATION METHODS AND CRITERIA HAVE BEEN
IDENTIFIED.

1. BASELINE MEASUREMENTS WILL BE ESTABLISHED THROUGH
DATA QUERIES AND QUESTIONNAIRES.
2. REPORTS WILL BE RUN THROUGH USE OF DATA QUERY
THROUGHOUT THE PROTOTYPE.
3. QUESTIONNAIRES WILL BE DISTRIBUTED DURING AND
AFTER THE PROTOTYPE PERIOD. PARTICIPANTS ARE
REQUIRED TO COMPLETE THE QUESTIONNAIRES IN FULL
AND RETURN THEM WITHIN 30 DAYS OF RECEIPT.

CUSTOMS MAY EVALUATE ANY OR ALL OF THE FOLLOWING ITEMS:

. WORKLOAD IMPACT (WORKLOAD SHIFTS, VOLUME, ETC.);
. POLICY AND PROCEDURAL ACCOMMODATION;
. TRADE COMPLIANCE IMPACT;
. ALTERNATE EXAM SITE ISSUES (WORKLOAD SHIFT,
COORDINATION\COMMUNICATION, ETC.);
. PROBLEM SOLVING;
. SYSTEM EFFICIENCY;
. THE COLLECTION OF STATISTICS.

THE TRADE WILL BE RESPONSIBLE FOR EVALUATING THE FOLLOWING
ITEMS:
. SERVICE IN CARGO CLEARANCE;
. PROBLEM RESOLUTION;
. COST BENEFITS;
. SYSTEM EFFICIENCY;
. OPERATIONAL EFFICIENCY;
. OTHER ITEMS IDENTIFIED BY THE PARTICIPANT GROUP.

IN CONCLUSION, IT IS EMPHASIZED THAT IF A COMPANY IS
INTERESTED IN FILING REMOTELY, IT 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: NOVEMBER 25, 1996.

ROBERT S. TROTTER,
ACTING ASSISTANT COMMISSIONER
OFFICE OF FIELD OPERATIONS