| Title: | NCAP PROTOTYPE |
|---|---|
| Date: | 1997-01-13 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : TROY RILEY
SUBJECT : NCAP PROTOTYPE
DATE : 01/09/97
CUSTOMS INVITES PUBLIC COMMENTS CONCERNING ANY
ASPECT OF THE PLANNED TEST DESCRIBED IN THE
BELOW DRAFT FEDERAL REGISTER NOTICE. COMMENTS
CONCERNING ANY ASPECT OF THE PROTOTYPE MUST BE
RECEIVED ON OR BEFORE FEBRUARY 10, 1997.
WRITTEN COMMENTS REGARDING THIS DRAFT SHOULD BE
ADDRESSED TO MR. DANIEL BUCHANAN AT U.S. CUSTOMS
SERVICE, 10 CAUSEWAY STREET, ROOM 822, BOSTON,
MASSACHUSETTS, 02222. MR. BUCHANAN CAN BE
REACHED AT (617) 565-6236. INQUIRIES ON
RECONCILIATION SHOULD BE ADDRESSED TO MS.
SHAROLYN MCCANN AT (202) 927-1106.
DEPARTMENT OF THE TREASURY
U.S. CUSTOMS SERVICE
DRAFT ANNOUNCEMENT OF NATIONAL CUSTOMS
AUTOMATION PROGRAM TEST
ACCOUNT BASED DECLARATION PROTOTYPE
AGENCY: U.S. CUSTOMS SERVICE, DEPARTMENT OF THE
TREASURY.
ACTION: GENERAL NOTICE.
SUMMARY: THIS NOTICE ANNOUNCES THE CUSTOMS PLAN
TO CONDUCT AN ACCOUNT-BASED DECLARATION
PROTOTYPE (NCAP/P) UNDER THE NATIONAL CUSTOMS
AUTOMATION PROGRAM (NCAP), AND INVITES ELIGIBLE
IMPORTERS TO PARTICIPATE. THE NCAP/P WILL BE
INITIALLY APPLICABLE TO MERCHANDISE IMPORTED
THROUGH THE PORTS OF LAREDO, TEXAS (COLUMBIA
BRIDGE ONLY), AND DETROIT AND PORT HURON,
MICHIGAN. THIS NOTICE PROVIDES A DESCRIPTION OF
THE TEST, AND OUTLINES THE DEVELOPMENT AND
EVALUATION METHODOLOGY TO BE USED IN THE TEST.
EFFECTIVE DATE: THE ACCOUNT-BASED DECLARATION
PROTOTYPE (NCAP/P) WILL COMMENCE NO EARLIER THAN
AUGUST, 1997 AND WILL RUN FOR APPROXIMATELY
EIGHTEEN MONTHS, WITH EVALUATIONS OF THE
PROTOTYPE OCCURRING PERIODICALLY. COMMENTS
CONCERNING ANY ASPECT OF THE PROTOTYPE MUST BE
RECEIVED ON OR BEFORE .
ADDRESSES: APPLICATIONS AND INQUIRIES REGARDING
ELIGIBILITY OF SPECIFIC IMPORTERS SHOULD BE
ADDRESSED TO MS. MARGARET FEARON AT U.S.
CUSTOMS SERVICE, 1301 CONSTITUTION AVENUE, NW,
ROOM 4139, WASHINGTON, DC 20229. MS. FEARON CAN
BE REACHED AT (202) 927-1413.
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). 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).
A KEY ELEMENT OF CUSTOMS EFFORTS TO RE-ENGINEER
ITS TRADE COMPLIANCE PROCESS IS A SHIFT IN
EMPHASIS FROM THE TRADITIONAL TRANSACTION-BASED
APPROACH OF ENSURING COMPLIANCE WITH IMPORT LAWS
AND REGULATIONS TO AN ACCOUNT-BASED APPROACH,
WHICH ADDRESSES AN IMPORTER'S OVERALL COMPLIANCE
THROUGH ACCOUNT MANAGEMENT, PROCESS REVIEWS, AND
AUDITS. ONE FEATURE OF THIS APPROACH IS A NEW
ACCOUNT-BASED DECLARATION PROCESS. CUSTOMS IS
ALSO DEVELOPING A NEW COMMERCIAL PROCESSING
SYSTEM, THE AUTOMATED COMMERCIAL ENVIRONMENT
(ACE), WHICH WILL BE DESIGNED TO SUPPORT THE NEW
TRADE COMPLIANCE PROCESSES. NCAP/P WILL PROVIDE
THE FIRST OPERATIONAL DEMONSTRATION OF ACE
CAPABILITIES FOR PROCESSING IMPORTS, INTEGRATING
THE NEW ACCOUNT-BASED IMPORT DECLARATION PROCESS
WITH OTHER ASPECTS OF THE TRADE COMPLIANCE
PROCESS AND WITH SELECTED FEATURES OF NCAP
ELEMENTS OF THE MOD ACT.
I. DEVELOPMENT METHODOLOGY
NCAP/P WILL BE MONITORED BY A JOINT PROTOTYPE
TEAM CONSISTING OF TRADE PARTICIPANTS, THE
CUSTOMS OFFICES OF FIELD OPERATIONS AND
STRATEGIC TRADE, THE ACE DEVELOPMENT TEAM, AND
OTHER INTERESTED GOVERNMENT AGENCIES. THIS TEAM
WILL MEET REGULARLY THROUGHOUT THE PROTOTYPE
PERIOD IN DETROIT, LAREDO AND WASHINGTON, DC, TO
SET DEVELOPMENT MILESTONES, MONITOR PROGRESS,
RESOLVE ISSUES AND EVALUATE PROGRAM
EFFECTIVENESS. THE DEVELOPMENT EFFORT WILL BE
COORDINATED WITH OTHER ON-GOING NCAP PROTOTYPE
PROGRAMS SUCH AS REMOTE LOCATION FILING AND
RECONCILIATION, AND WILL BE AS CONSISTENT AS
POSSIBLE WITH THE OVERALL DIRECTION OF ACE
DEVELOPMENT.
POTENTIAL PARTICIPANTS SHOULD RECOGNIZE THAT
THIS IS A PROTOTYPE TEST OF NEW PROCESSES. DATA
DEFINITIONS AND VALUES AND FORMATS FOR
ELECTRONIC TRANSMISSION OF MANIFEST, ENTRY AND
COMMERCIAL DATA WILL DIFFER FROM THOSE CURRENTLY
USED IN THE AUTOMATED COMMERCIAL SYSTEM (ACS).
IT IS ALSO IMPORTANT TO NOTE THAT DEVELOPMENT
EFFORTS UNDERTAKEN FOR NCAP/P MAY NOT MEET THE
EVENTUAL REQUIREMENTS FOR PROGRAMS AS THEY ARE
FINALLY IMPLEMENTED IN ACE.
II. ELIGIBILITY REQUIREMENTS
IN ORDER TO BE ELIGIBLE FOR PARTICIPATION IN THE
NCAP/P, AN IMPORTER MUST:
BE DESIGNATED AS ONE OF THE TOP 350
U.S. IMPORTERS IN TERMS OF ENTERED
VALUE, WHILE IMPORTING NO LESS THAN
50
OF THEIR MERCHANDISE SPECIFIED AS
CUSTOMS' PRIMARY FOCUS INDUSTRIES,
WHICH ARE AS FOLLOWS:
A) ADVANCED DISPLAYS
B) AGRICULTURE
C) AUTO/TRUCK PARTS
D) AUTOMOBILES
E) BEARINGS
F) CIRCUIT BOARDS
G) FASTENERS
H) FOOTWEAR
I) MANUFACTURING EQUIPMENT
J) STEEL PRODUCTS
K) TELECOMMUNICATIONS
L) TEXTILES AND FLATGOODS
M) WEARING APPAREL
IMPORTERS WHO ARE ORIGINALLY SELECTED
TO PARTICIPATE WILL BE ELIGIBLE TO
CONTINUE TO PARTICIPATE THROUGHOUT THE
PROTOTYPE PERIOD, REGARDLESS OF THEIR
SUBSEQUENT ELIGIBILITY IN REGARD TO
THIS REQUIREMENT.
BE EITHER SCHEDULED FOR OR
PARTICIPATING IN A CUSTOMS' COMPLIANCE
ASSESSMENT EXAM;
FOR SOUTHERN BORDER NCAP/P SHIPMENTS,
USE CARRIERS WHO PARTICIPATE IN THE
LAND BORDER CARRIER INITIATIVE PROGRAM
(LBCIP). NO SOUTHERN BORDER CARGO
TRANSPORTED BY NON-PARTICIPANT
CARRIERS WILL BE PROCESSED UNDER
NCAP/P PROCEDURES;
MAINTAIN A CONTINUOUS BOND WHICH WILL
BE OBLIGATED UPON RELEASE OF EACH
NCAP/P SHIPMENT. FAILURE TO MAINTAIN
A CONTINUOUS BOND WILL RESULT IN
SUSPENSION OF AN IMPORTER'S
ELIGIBILITY FOR NCAP/P CARGO RELEASE
PROCESSING;
MAINTAIN AN AVERAGE OF AT LEAST 1-2
ENTRIES PER DAY THROUGHOUT THE
PROTOTYPE PERIOD. FAILURE TO MAINTAIN
THIS VOLUME MAY RESULT IN EXCLUSION OF
AN IMPORTER FROM FUTHER NCAP/P
PARTICIPATION;
ARRANGE FOR ELECTRONIC TRANSMISSION TO
CUSTOMS OF ALL DATA REQUIRED IN THE
NCAP/P DECLARATION PROCESS, INCLUDING
MANIFEST AND PRE-RELEASE SHIPMENT
DATA, ADDITIONAL DATA REQUIRED TO
SUPPORT PHYSICAL EXAMINATIONS OF
CARGO, ENTRY SUMMARY DATA, DETAILED
COMMERCIAL DATA WHEN REQUESTED, AND
RECONCILIATION DATA IF ELECTED. IF
ELECTRONIC DATA IS NOT AVAILABLE FOR A
SHIPMENT, CUSTOMS MAY EXCLUDE THAT
SHIPMENT FROM NCAP/P PROCESSING.
PARTICIPANTS WHO ARE UNABLE TO
RELIABLY PROVIDE TIMELY TRANSMISSION
OF REQUIRED DATA MAY BE EXCLUDED FROM
FURTHER NCAP/P PARTICIPATION.
ARRANGE FOR ELECTRONIC PAYMENT OF
DUTIES, TAXES AND FEES. PARTICIPANTS
WHO ARE UNABLE TO RELIABLY PROVIDE
TIMELY TRANSMISSION OF REQUIRED
PAYMENTS MAY BE EXCLUDED FROM FURTHER
NCAP/P PARTICIPATION; AND
ENSURE MAINTENANCE OF THE ACCURACY OF
ALL DATA TRANSMITTED FOR THEIR NCAP/P
SHIPMENTS, WHETHER THE DATA IS
TRANSMITTED BY THEMSELVES OR ANOTHER
ENTITY, SUCH AS CUSTOMS BROKERS OR
CARRIERS. IMPORTER PARTICIPANTS WHO
ARE UNABLE TO MAINTAIN A HIGH LEVEL OF
ACCURACY MAY BE EXCLUDED FROM FURTHER
NCAP/P PARTICIPATION.
III. CARGO RESTRICTIONS
FOR NCAP/P, THE FOLLOWING RESTRICTIONS WILL BE
PLACED UPON IMPORTED MERCHANDISE:
MERCHANDISE MUST BE FROM A
PARTICIPATING IMPORTER'S TYPICAL
COMMODITIES IN ITS ESTABLISHED LINES
OF BUSINESS;
MUST BE FROM PRE-IDENTIFIED SELLERS
AND SHIPPERS;
MUST BE WITHIN A RANGE OF COMMODITIES
PRE-IDENTIFIED (AT THE 6-DIGIT HTS
LEVEL) BY THE IMPORTER ACCOUNT FOR
EACH ELIGIBLE SELLER;
MUST BE CONVEYED ON TRUCKS OPERATED BY
PARTICIPATING CARRIERS; AND
MUST BE FOR RELEASE INTO THE COMMERCE
AS A CONSUMPTION ENTRY AT THE PORT OF
ARRIVAL.
MUST ARRIVE AT THE PORT OF LAREDO,
TEXAS, OR AT DETROIT OR PORT HURON,
MICHIGAN;
MERCHANDISE WILL BE INELIGIBLE FOR CLEARANCE IN
THE NCAP/P IF IT IS SUBJECT TO ANTI-DUMPING OR
COUNTERVAILING DUTY, QUOTA, TRADE PREFERENCE
LEVEL OR VISA REQUIREMENTS, OR PRE-RELEASE
REPORTING REQUIREMENTS IMPOSED BY OTHER FEDERAL
AGENCIES. IN ADDITION, NCAP/P MERCHANDISE IS
NOT ELIGIBLE FOR ADMISSION INTO A WAREHOUSE OR
FOREIGN TRADE ZONE, OR AS AN IN-BOND ENTRY.
IMPORTERS ARE RESPONSIBLE FOR ARRANGING THEIR
SHIPMENTS SO THAT INELIGIBLE MERCHANDISE WILL
NOT BE INCLUDED IN NCAP/P SHIPMENTS, AND SO THAT
ALL SHIPMENTS ABOARD A CONVEYANCE WILL BE
ELIGIBLE FOR NCAP/P PROCESSING. CUSTOMS MAY
EXCLUDE INELIGIBLE SHIPMENTS FROM NCAP/P
PROCESSING. CUSTOMS WILL MONITOR PARTICIPATING
IMPORTERS' COMPLIANCE WITH THESE RESTRICTIONS;
PARTICIPANTS WHO ARE UNABLE TO MAINTAIN A HIGH
LEVEL OF COMPLIANCE MAY BE EXCLUDED FROM FURTHER
NCAP/P PARTICIPATION.
IV. APPLICATION
IMPORTERS WHO WISH TO PARTICIPATE IN NCAP/P MUST
SUBMIT A WRITTEN APPLICATION INCLUDING THE
FOLLOWING INFORMATION:
1. IMPORTER NAME;
2. NAMES AND ADDRESSES OF ANY CUSTOMS
BROKERS WHO WILL BE FILING DECLARATION
DATA;
3. NAMES AND ADDRESSES OF ALL
PARTICIPATING SHIPPERS;
4. NAMES AND ADDRESSES OF ALL
PARTICIPATING SELLER/VENDORS, AND, FOR
EACH SELLER/VENDOR IDENTIFIED, A
LISTING OF THE 6-DIGIT HTS NUMBERS IN
WHICH THE COMMODITIES TO BE IMPORTED
ARE CLASSIFIED;
5. THE ISSUER AND NUMBER OF THE
CONTINUOUS SURETY BOND WHICH WILL
COVER ALL CARGO PROCESSED UNDER NCAP/P
PROCEDURES;
6. NAMES AND ADDRESSES OF TRUCK CARRIERS
WHO WILL BE TRANSPORTING NCAP/P
SHIPMENTS ACROSS THE INTERNATIONAL
BORDERS;
7. THE APPROXIMATE TOTAL NUMBER OF
TRUCKLOADS PER MONTH EXPECTED TO BE
PROCESSED AT EACH OF THE FOLLOWING
LOCATIONS:
COLUMBIA BRIDGE, LAREDO;
AMBASSADOR BRIDGE, DETROIT;
WINDSOR TUNNEL, DETROIT;
BLUE WATER BRIDGE, PORT HURON;
8. DESCRIPTION OF ISSUES (FROM THE
ELIGIBLE ISSUES LISTED IN SECTION VII
OF THIS NOTICE) AND COMMODITIES UNDER
RECONCILIATION.
ANY IMPORTERS WHO HAVE APPLIED TO BECOME NCAP/P
PARTICIPANTS WILL BE NOTIFIED IN WRITING OF
THEIR ACCEPTANCE OR REJECTION. IF AN IMPORTER'S
APPLICATION FOR NCAP/P PARTICIPATION IS
ACCEPTED, CUSTOMS WILL ASSIGN THE IMPORTER AN
NCAP/P AUTHORIZATION CODE. IF AN APPLICANT IS
DENIED PARTICIPATION, THE NOTIFICATION LETTER
WILL INCLUDE THE REASONS FOR THAT DENIAL.
ELIGIBLE IMPORTERS WHOSE INITIAL APPLICATIONS
ARE REJECTED MAY RE-APPLY AFTER CORRECTING ANY
DEFICIENCIES IN THE INITIAL APPLICATION.
CUSTOMS EXPECTS TO INITIALLY LIMIT NCAP/P
PARTICIPATION TO TEN (10) IMPORTERS. ELIGIBLE
IMPORTERS WHOSE INITIAL APPLICATIONS ARE
REJECTED MAY RE-APPLY IF CUSTOMS SUBSEQUENTLY
OPENS PARTICIPATION TO ADDITIONAL PARTICIPANTS.
V. MAINTENANCE OF ACCOUNT INFORMATION
FOLLOWING APPROVAL BY CUSTOMS OF AN IMPORTER'S
APPLICATION, EACH PARTICIPATING ENTRY FILER MUST
PROVIDE CUSTOMS WITH A RANGE OF ENTRY NUMBERS TO
BE RESERVED FOR ASSIGNMENT BY CUSTOMS TO NCAP/P
SHIPMENTS. ENTRY FILERS MAY NOT ASSIGN THESE
NUMBERS TO OTHER TRANSACTIONS, EITHER FOR NCAP/P
OR FOR NON-PROTOTYPE ENTRIES.
THROUGHOUT THE PROTOTYPE PERIOD, PARTICIPATING
IMPORTERS MUST PROVIDE CUSTOMS WITH ADVANCE
NOTIFICATION OF ANY CHANGES IN THE INFORMATION
LISTED IN ITEMS 3-6 IN THE PREVIOUS SECTION OF
THIS NOTICE.
BY NOTIFICATION OF THE PARTICIPATING IMPORTER,
CUSTOMS MAY EXCLUDE ANY CARRIER, SHIPPER, SELLER
OR MERCHANDISE FROM THE PROTOTYPE. ALL CURRENT
POLICIES AND PROCEDURES REGARDING RESTRICTED AND
EMBARGOED MERCHANDISE WILL BE ADHERED TO FOR
PROTOTYPE SHIPMENTS.
VI. REMOTE LOCATION FILING
SOME ASPECTS OF REMOTE LOCATION FILING WILL BE
SUPPORTED IN NCAP/P. UNDER THE REMOTE LOCATION
FILING COMPONENT, IMPORTERS WILL BE ABLE TO
ELECTRONICALLY FILE DATA WITH CUSTOMS FROM ANY
PLACE IN THE UNITED STATES REGARDLESS OF WHERE
THE MERCHANDISE ARRIVES OR IS EXAMINED. TO
QUALIFY FOR REMOTE LOCATION FILING, AN ENTRY
FILER MUST BE ABLE TO ELECTRONICALLY TRANSMIT
SPECIFIED CORE ENTRY INFORMATION ON AN ENTRY BY
ENTRY BASIS, INCLUDING ENTRY SUMMARY, INVOICE
INFORMATION (WHEN REQUIRED BY CUSTOMS), AND
PAYMENT OF DUTIES, FEES, AND TAXES.
THE DESIGNATION OF ALTERNATIVE LOCATIONS FOR
CARGO EXAMINATION WILL NOT BE SUPPORTED IN
NCAP/P. ALL CARGO EXAMINATIONS WILL BE
CONDUCTED AT THE PORT WHERE THE CARGO FIRST
ARRIVES IN THE UNITED STATES.
VII. RECONCILIATION
RECONCILIATION PERMITS THOSE ELEMENTS OF AN
ENTRY, OTHER THAN THOSE RELATED TO
ADMISSIBILITY, WHICH ARE UNDETERMINED AT THE
TIME OF ENTRY SUMMARY FILING, TO BE PROVIDED AT
A SUBSEQUENT TIME. FOR MERCHANDISE PROCESSED IN
NCAP/P, RECONCILIATION WILL ALLOW PARTICIPATING
IMPORTERS USING REASONABLE CARE TO IDENTIFY THE
FOLLOWING ISSUES FOR WHICH COMPLETE INFORMATION
IS UNAVAILABLE AT THE TIME OF ENTRY SUMMARY
FILING:
1. NAFTA
2. GSP
3. VALUE
4. 9802
5. CLASSIFICATION
RECONCILIATIONS OF NAFTA ISSUES MUST BE
ELECTRONICALLY FILED WITHIN 12 MONTHS OF ENTRY
SUMMARY FILING FOR THE OLDEST ENTRY. FOR THE
REMAINING ISSUES, THE RECONCILIATION MUST BE
FILED WITHIN 15 MONTHS OF ENTRY SUMMARY FILING
FOR THE OLDEST ENTRY. IN ORDER TO GAIN AS MUCH
EXPERIENCE AS POSSIBLE FROM THIS PROTOTYPE,
CUSTOMS WILL WORK WITH THE PARTICIPANTS TO
DETERMINE WHETHER AN EARLIER TIME FRAME FOR
FILING OF THE RECONCILIATION IS POSSIBLE.
ONLY ORIGINAL CONSUMPTION ENTRIES FILED IN THE
NCAP/P SYSTEM WILL BE ELIGIBLE FOR
RECONCILIATION UNDER THIS PROTOTYPE. ENTRIES
SUBJECT TO RECONCILIATION WILL BE FLAGGED AT THE
HEADER LEVEL WITH AN ELECTRONIC INDICATOR
SPECIFYING THE ISSUE(S) TO BE RECONCILED.
FILERS FLAGGING ENTRIES FOR RECONCILIATION ARE
OBLIGATED TO USE REASONABLE CARE TO PROVIDE THE
BEST INFORMATION AVAILABLE AT THE TIME OF ENTRY
SUMMARY FILING.
THE FLAGGING OF AN ENTRY FOR RECONCILIATION WILL
SERVE AS THENOTICE OF INTENT, AND WILL PERMIT
THE LIQUIDATION OF AN ENTRY AS TO ALL ISSUES
OTHER THAN THAT WHICH IS FLAGGED FOR
RECONCILIATION. BY FILING A NOTICE OF INTENT,
THE IMPORTER VOLUNTARILY REQUESTS AND ACCEPTS
THAT THE ISSUE(S) FLAGGED FOR RECONCILIATION IS
SEPARATED FROM THE ENTRY, REMAINS OPEN AND IS
TRANSFERRED TO THE RECONCILIATION.
IMPORTERS WHO CHOOSE TO PARTICIPATE IN THIS
PROTOTYPE WILL RECOGNIZE THAT THE LIQUIDATION OF
THE UNDERLYING ENTRIES PERTAINS ONLY TO THOSE
ISSUES NOT IDENTIFIED BY THE IMPORTER ON THE
NOTICE OF INTENT. UPON LIQUIDATION OF THE ENTRY,
ANY DECISION BY CUSTOMS ENTERING INTO THAT
LIQUIDATION, E.G., CLASSIFICATION, MAY BE
PROTESTED PURSUANT TO 19 U.S.C. 1514. WHEN THE
OUTSTANDING INFORMATION, E.G., VALUE AS
DETERMINED BY THE ACTUAL COSTS, IS LATER
FURNISHED ON THE RECONCILIATION, THE
RECONCILIATION MAY BE LIQUIDATED. THE
LIQUIDATION OF THE RECONCILIATION MAY BE
PROTESTED BUT THE PROTEST MAY ONLY PERTAIN TO
ELEMENTS CONTAINED IN THE LIQUIDATED
RECONCILIATION, I.E., THE PROTEST MAY NOT RE-
VISIT ELEMENTS PREVIOUSLY LIQUIDATED IN THE
ENTRY. THE LIQUIDATION OF THE UNDERLYING
ENTRIES AND THAT OF THE RECONCILIATION WILL EACH
BE POSTED TO THE BULLETIN NOTICE OF LIQUIDATION.
THE RECONCILIATION MAY COVER ANY COMBINATION OF
VALUE, 9802 AND CLASSIFICATION. HOWEVER,
RECONCILIATIONS OF NAFTA AND GSP WILL NOT BE
COMBINED WITH OTHER ISSUES, IN ORDER THAT
CUSTOMS MAY EXPEDITE THE PROCESSING OF SUCH
REFUNDS. ISSUES WILL ALWAYS BE RECONCILED IN
THEIR ENTIRETY, AS OPPOSED TO PARTIAL
RECONCILIATIONS.
A RECONCILIATION SHOULD COVER NO LESS THAN TEN
ENTRIES. FOR PURPOSES OF THIS PROTOTYPE, EACH
RECONCILIATION MUST BE COVERED BY ONE SURETY.
THE RECONCILIATION WILL CONTAIN A FIELD FOR
COMMENTS IN WHICH THE FILER MAY PROVIDE
PERTINENT INFORMATION, TO EXPLAIN, FOR EXAMPLE,
THAT THE SPECIFIC VALUE ISSUE WITHIN THIS
RECONCILIATION IS AN ASSIST DECLARATION, OR THAT
THE ONLY ENTRIES COVERED BY THIS 12 MONTH
RECONCILIATION ARE THOSE FILED FROM OCTOBER
THROUGH JUNE.
UPON SUBMISSION OF THE RECONCILIATION, THE FILER
WILL INCLUDE PAYMENT OF MONIES DUE CUSTOMS, OR A
STATEMENT OF THE AMOUNT TO BE REFUNDED TO THE
FILER. CUSTOMS WILL INCLUDE INTEREST PAYMENTS
IN THE LIQUIDATION OF THE RECONCILIATION, EITHER
ISSUING A BILL FOR OR REFUNDING THE INTEREST
DUE.
PART 1 OF THE RECONCILIATION WILL IDENTIFY ALL
UNDERLYING ENTRY NUMBERS, DATES AND THE CHANGE
IN DUTY PER ENTRY. THE FOLLOWING ILLUSTRATES
THE STRUCTURE OF PART 1 OF THE RECONCILIATION:
RECONCILIATION #557
ISSUE: VALUE
COMMENTS: ASSIST DECLARATION
ENTRY # ENTRY DATE CHANGE IN DUTY
123 10/1/96 $15
234 11/1/96 $5
345 12/1/96 $30
TWO OPTIONS ARE CURRENTLY BEING CONSIDERED FOR
PART 2 OF THE RECONCILIATION, AND ARE EXPLAINED
AS FOLLOWS:
A.
ALL COMBINATIONS OF ^HTS/COUNTRY OF
ORIGIN/SPI|, ALONG WITH THE
RECONCILIATION CHANGE(S) FOR EACH
COMBINATION, E.G., VALUE. CUSTOMS
WILL PRORATE THE RECONCILIATION CHANGE
OVER THE UNIVERSE OF LINES FALLING
WITHIN THE SUBJECT COMBINATION.
CENSUS WILL EXTRACT THE RECONCILED
DATA AND SORT BY MONTH OF RELEASE TO
UPDATE THE STATISTICAL REPORTING. THE
FOLLOWING IS AN EXAMPLE OF THIS OPTION
FOR A VALUE RECONCILIATION:
HTS COUNTRY OF ORIGIN CHANGE IN VALUE
2222 FR $300
3333 FR $150
7777 DE $50
8888 FR $50
B. ALL COMBINATIONS OF ^HTS/COUNTRY OF
ORIGIN/SPI/MONTH OF RELEASE|, ALONG
WITH THE RECONCILIATION CHANGE(S) FOR
EACH COMBINATION, E.G., VALUE.
CUSTOMS WILL NOT PRORATE THE SUBJECT
DATA OVER THE UNIVERSE OF LINES.
CENSUS WILL USE THE INFORMATION
PROVIDED IN THE RECONCILIATION TO
UPDATE THE STATISTICAL REPORTING. THE
FOLLOWING IS AN EXAMPLE OF THIS OPTION
FOR A VALUE RECONCILIATION:
HTS COUNTRY OF ORIGIN MONTH CHANGE IN VALUE
2222 FR 10/96 $100
2222 FR 12/96 $200
3333 FR 10/96 $50
3333 FR 12/96 $100
7777 DE 11/96 $50
8888 FR 12/96 $50
TRADE PARTICIPANTS ARE ENCOURAGED TO PROVIDE
COMMENTS ON THE BUSINESS IMPACT OF THE TWO
OPTIONS. THE OPTION WHICH CUSTOMS SELECTS WILL
BE SPECIFIED WHEN THIS NOTICE IS PUBLISHED IN
THE FEDERAL REGISTER.
VIII. ACCOUNT-BASED IMPORT DECLARATION PROCESS
THE ACCOUNT-BASED DECLARATION PROCESS IS A FULLY
ELECTRONIC PROCESS THAT WILL, FOR NCAP/P
PARTICIPANT IMPORTERS FILING CONSUMPTION
ENTRIES:
BASE CARGO EXAMINATION DECISIONS ON
PRE-ESTABLISHED ACCOUNT INFORMATION,
MINIMIZING THE TRANSACTION DATA THAT
NEEDS TO BE TRANSMITTED TO CUSTOMS
PRIOR TO RELEASE OF CARGO,
PERMIT REPORTING OF DETAILED ENTRY
SUMMARY DATA ON A MONTHLY CYCLE, AND
PROVIDE FOR PAYMENT OF DUTIES, TAXES
AND FEES ON A MONTHLY STATEMENT CYCLE
EMPLOYING SEMI-MONTHLY ESTIMATED
PAYMENTS.
WHILE VARIOUS AUTOMATIC NOTIFICATIONS AND BACK-
UP PROCEDURES WILL ALSO BE SUPPORTED, THE BASIC
DECLARATION FLOW FOR NCAP/P WILL BE AS FOLLOWS:
PRIOR TO ARRIVAL OF CARGO AT THE BORDER,
THE CARRIER ISSUING THE MANIFEST OR AN
AUTHORIZED AGENT WILL ELECTRONICALLY
TRANSMIT TO CUSTOMS BASIC MANIFEST DATA:
CODED IDENTIFICATION OF THE CARRIER; TRIP
DETAILS; IDENTIFICATION OF DRIVERS, THE
CONVEYANCE AND OTHER EQUIPMENT; AND AN
IDENTIFYING NUMBER AND THE LADEN QUANTITY
FOR EACH SHIPMENT ON THE CONVEYANCE.
ALSO PRIOR TO ARRIVAL OF THE CARGO AT THE
BORDER, DATA PERTAINING TO EACH INDIVIDUAL
SHIPMENT MUST BE ELECTRONICALLY TRANSMITTED
TO CUSTOMS. THIS SHIPMENT DATA WILL
INCLUDE INFORMATION GENERALLY FOUND ON
FREIGHT BILLS, PLUS THE NCAP/P
AUTHORIZATION CODE ASSIGNED TO THE
PARTICIPATING IMPORTER BY CUSTOMS, AND
IDENTIFICATION OF THE ENTRY FILER AND THE
SELLER AND BUYER OF THE MERCHANDISE. THIS
SHIPMENT DATA MAY BE TRANSMITTED BY THE
CARRIER ISSUING THE MANIFEST, AN AUTHORIZED
AGENT ACTING ON BEHALF OF THE CARRIER
ISSUING THE MANIFEST, OR THE ENTRY FILER
(I.E., EITHER THE IMPORTER OF RECORD OR THE
IMPORTER OF RECORD'S CUSTOMS BROKER.)
CUSTOMS WILL ASSIGN AN ENTRY NUMBER TO EACH
SHIPMENT FROM THE RANGE OF ENTRY NUMBERS
PROVIDED IN ADVANCE BY EACH PARTICIPATING
ENTRY FILER FOR THAT PURPOSE. WHEN A TRUCK
ARRIVES AT THE BORDER, SHIPMENTS FOR WHICH
NO PHYSICAL EXAMINATION OF CARGO IS
REQUIRED WILL BE RELEASED WITHOUT
ADDITIONAL DATA OR DOCUMENTATION. FOR ANY
SHIPMENT ABOARD THAT TRUCK SELECTED BY
CUSTOMS FOR PHYSICAL EXAMINATION OF CARGO,
CUSTOMS WILL ISSUE TO THE ENTRY FILER
DESIGNATED IN THE SHIPMENT DATA AN
ELECTRONIC REQUEST FOR ADDITIONAL
INFORMATION. THIS REQUEST MAY BE SATISFIED
BY TRANSMISSION OF EITHER PARTIAL OR
COMPLETE ENTRY SUMMARY AND COMMERCIAL DATA,
AS DEFINED BY CUSTOMS, PLUS PACKING DATA.
THE COMMERCIAL DATA REQUIRED FOR CARGO
EXAMINATION, WHETHER PARTIAL OR COMPLETE,
WILL BE AT THE DETAILED ITEM LEVEL. CARGO
WILL NOT BE EXAMINED UNTIL THIS DATA IS
RECEIVED BY CUSTOMS.
RELEASE OF NCAP/P SHIPMENTS WILL CONSTITUTE
ENTRY AND THE DATE OF ENTRY WILL BE THE
DATE ON WHICH MERCHANDISE IS RELEASED BY
CUSTOMS. THE RELEASE WILL OBLIGATE THE
CONTINUOUS BOND IDENTIFIED IN THE PROTOTYPE
APPLICATION OF THE IMPORTER WHOSE NCAP/P
AUTHORIZATION CODE IS PRESENT IN THE
SHIPMENT DATA.
FOR EACH SHIPMENT RELEASED DURING A
CALENDAR MONTH, THE ENTRY FILER MUST
ELECTRONICALLY TRANSMIT COMPLETE ENTRY
SUMMARY DATA TO CUSTOMS ON OR BEFORE THE
TENTH CALENDAR DAY OF THE FOLLOWING MONTH.
ENTRY SUMMARY DATA TRANSMITTED PRIOR TO
THIS DEADLINE WILL BE CONSIDERED
PROVISIONAL AND MAY BE REPLACED BY THE
ENTRY FILER ANYTIME BEFORE THE DEADLINE.
ALL SUMMARIES FILED ON OR BEFORE THE TENTH
DAY OF THE CALENDAR MONTH FOLLOWING RELEASE
OF THE SHIPMENT WILL BE CONSIDERED AS FILED
ON THE TENTH. ANY ISSUES THAT MAY BE THE
SUBJECT OF A FUTURE RECONCILIATION MUST BE
IDENTIFIED IN THE ENTRY SUMMARY DATA.
FOR ANY ENTRY SUMMARY SELECTED BY CUSTOMS
FOR DATA REVIEW, UNLESS COMPLETE COMMERCIAL
DATA WAS PREVIOUSLY TRANSMITTED TO SUPPORT
A CARGO EXAMINATION, CUSTOMS WILL ISSUE TO
THE ENTRY FILER AN ELECTRONIC REQUEST FOR
COMPLETE COMMERCIAL DATA. THIS REQUEST
MUST BE SATISFIED BY ELECTRONIC
TRANSMISSION OF A COMPLETE SET OF
COMMERCIAL DATA, AS DEFINED BY CUSTOMS,
PLUS PACKING DATA IF SPECIFICALLY
REQUESTED.
EACH PARTICIPATING IMPORTER ACCOUNT WILL
MAKE SEMI-MONTHLY ELECTRONIC ESTIMATED
PAYMENTS, AND ACCOUNTS WILL BE BALANCED
EACH MONTH WITH THE FIRST PAYMENT FOLLOWING
THE CLOSE OF THE MONTHLY REPORTING CYCLE.
FOR ANY CHANGE LIQUIDATIONS, INTEREST WILL
ACCRUE FROM THE DUE DATE OF THE FINAL
BALANCING PAYMENT FOR THE MONTH. CUSTOMS
WILL ISSUE TWO STATEMENTS EACH MONTH, ONE
BEFORE AND ONE AFTER THE MONTHLY FILING
DEADLINE. EACH STATEMENT WILL LIST EACH
IMPORTER ACCOUNT'S NCAP/P ACTIVITY AT ALL
LOCATIONS FOR THE REPORTING MONTH, AND WILL
INDICATE WHETHER ENTRY SUMMARY DATA HAS
BEEN FILED AND, IF IT HAS, AMOUNTS DUE.
WITHIN THE PERIOD OF TIME PRESCRIBED FOR
EACH ISSUE, THE ENTRY FILER MUST TRANSMIT
AN ELECTRONIC RECONCILIATION TO RESOLVE
EACH ISSUE IDENTIFIED FOR RECONCILIATION IN
ENTRY SUMMARY DATA. IN GENERAL, ONE
RECONCILIATION WILL RESOLVE MULTIPLE ISSUES
FOR EACH OF THE UNDERLYING ENTRIES.
CARGO WILL BE RELEASED AND DUTIES, TAXES AND
FEES ASSESSED ON THE BASIS OF DATA TRANSMITTED
TO THE NCAP/P SYSTEM. FOR SHIPMENTS PROCESSED
IN NCAP/P, PARTICIPANTS WILL NOT BE REQUIRED TO
PROVIDE PARALLEL FILING OF ACS DATA OR PAPER
DOCUMENTS.
IX. PROTOTYPE EVALUATION
ONCE THE IMPORTERS ARE SELECTED FOR NCAP/P, THE
JOINT PROTOTYPE TEAM WILL REVIEW ALL PUBLIC
COMMENTS RECEIVED REGARDING ANY AND ALL ASPECTS
OF THE PROTOTYPE. DURING THE INITIAL SIX MONTHS
OF THE TEST PERIOD, THE FOCUS WILL BE ON THE
EFFECTIVENESS OF THE AUTOMATION INVOLVED. THE
FOLLOWING REVIEWS WILL ADDITIONALLY CONSIST OF
EVALUATING THE DATA RECEIVED FROM THE IMPORTERS,
ALONG WITH THE INTERNAL AND EXTERNAL PROCESS
OPERATIONS OF THE NCAP/P.
ADDITIONAL IMPORTERS MAY BECOME ELIGIBLE DURING
THE PROTOTYPE PERIOD, USING THE ELIGIBILITY
REQUIREMENTS CITED ABOVE, THEREBY INCREASING THE
NUMBER OF COMPANIES INVOLVED IN THE NCAP/P. THE
EVALUATION OF THE PROTOTYPE AS IT PERTAINS TO
THESE IMPORTERS MAY OCCUR SEPARATELY FROM THAT
WHICH IS DONE ON THE ORIGINAL PARTICIPANTS.
REGARDLESS, THE INTENTION OF THE EVALUATIONS IS
TO ENHANCE OPERATIONAL PROCEDURES AND TO DEVELOP
THE DETAILED DATA REQUIREMENTS THAT ARE NEEDED
FOR NCAP.
NOTE THAT PARTICIPATION IN THE NCAP/P IS NOT
CONFIDENTIAL INFORMATION. LISTS OF PARTICIPANTS
WILL BE MADE AVAILABLE TO THE PUBLIC BY MEANS OF
THE CUSTOMS ELECTRONIC BULLETIN BOARD AND THE
CUSTOMS ADMINISTRATIVE MESSAGE SYSTEM, AND UPON
WRITTEN REQUEST. WE STRESS THAT ALL INTERESTED
PARTIES ARE INVITED TO COMMENT ON THE DESIGN,
CONDUCT, AND EVALUATION OF NCAP/P AT ANY TIME
DURING PROTOTYPE.
UPON CONCLUSION OF THE PROTOTYPE THE FINAL
RESULTS WILL BE PUBLISHED IN THE FEDERAL
REGISTER AS REQUIRED BY 101.9(B), CUSTOMS
REGULATIONS AND REPORTED TO CONGRESS.