| Title: | NCAP PROTOTYPE ANNOUNCEMENT |
|---|---|
| Date: | 1997-03-24 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : SHAROLYN MCCANN
SUBJECT : NCAP PROTOTYPE ANNOUNCEMENT
DATE : 03/24/97
DEPARTMENT OF THE TREASURY
U.S. CUSTOMS SERVICE
ANNOUNCEMENT OF NATIONAL CUSTOMS AUTOMATION PROGRAM TEST
OF ACCOUNT-BASED DECLARATION PROTOTYPE
AGENCY: U.S. CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY.
ACTION: GENERAL NOTICE.
SUMMARY: THIS NOTICE ANNOUNCES 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 BY TRUCK THROUGH THE PORTS OF LAREDO, TEXAS
(COLOMBIA BRIDGE ONLY), AND DETROIT AND PORT HURON, MICHIGAN.
THIS NOTICE PROVIDES A DESCRIPTION OF THE TEST, OUTLINES THE
DEVELOPMENT AND EVALUATION METHODOLOGY TO BE USED IN THE TEST,
SETS FORTH THE ELIGIBILITY REQUIREMENTS FOR PARTICIPATION IN THE
TEST AND INVITES PUBLIC COMMENT ON ANY ASPECT OF THE PLANNED
TEST.
DATES: 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. ALL APPLICATIONS TO PARTICIPATE IN THE
TEST MUST BE RECEIVED ON OR BEFORE APRIL 25, 1997. PUBLIC
COMMENTS ON ANY ASPECT OF THE PLANNED TEST MUST BE RECEIVED ON OR
BEFORE APRIL 25, 1997.
ADDRESSES: APPLICATIONS SHOULD BE ADDRESSED TO MS. MARGARET
FEARON AT U.S. CUSTOMS SERVICE, 1301 CONSTITUTION AVENUE, NW,
ROOM 4139, WASHINGTON, DC 20229.
FOR FURTHER INFORMATION CONTACT: FOR INQUIRIES REGARDING
ELIGIBILITY OF SPECIFIC IMPORTERS: MARGARET FEARON, PROCESS
ANALYSIS AND REQUIREMENTS TEAM, AT (202)927-1413. FOR QUESTIONS
ON RECONCILIATION: SHARI MCCANN, PROCESS ANALYSIS AND
REQUIREMENTS TEAM, AT (202)927-1106. FOR QUESTIONS ON OTHER
ASPECTS OF THE ACCOUNT-BASED DECLARATION PROTOTYPE: DANIEL
BUCHANAN, PROCESS ANALYSIS AND REQUIREMENTS TEAM, AT (617)565-
6236.
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 (THE MOD ACT). 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 (SECTION 414). SECTION
101.9(B) OF THE CUSTOMS REGULATIONS (19 CFR 101.9(B)), CONCERNS
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. AN ACCOUNT-BASED DECLARATION
PROTOTYPE (NCAP\P) IS BEING DEVELOPED TO 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.
THE PUBLIC IS INVITED TO COMMENT ON ANY ASPECT OF THE NCAP\P
TEST AS DESCRIBED BY THIS NOTICE.
II. ELIGIBILITY REQUIREMENTS
IN ORDER TO BE ELIGIBLE FOR PARTICIPATION IN THE NCAP\P, AN
IMPORTER MUST:
1. 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.
2. BE SCHEDULED FOR, PARTICIPATING IN, OR, IN THE APPLICATION,
AGREE TO UNDERGO AND COOPERATE FULLY WITH A CUSTOMS COMPLIANCE
ASSESSMENT;
3. FOR SOUTHERN BORDER NCAP\P SHIPMENTS, USE CARRIERS WHO
PARTICIPATE IN THE LAND BORDER CARRIER INITIATIVE PROGRAM
(LBCIP). NO IMPORTER MAY ENTER SOUTHERN BORDER CARGO TRANSPORTED
BY NON-PARTICIPANT CARRIERS;
4. AGREE IN THE APPLICATION TO FILE OR MAINTAIN A CONTINUOUS BOND
WHICH WILL BE OBLIGATED UPON RELEASE OF EACH NCAP\P SHIPMENT;
5. BE CAPABLE AND\OR AGREE TO ARRANGE FOR TIMELY AND ACCURATE
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 AN IMPORTER
DOES NOT TRANSMIT ELECTRONIC DATA FOR A PARTICULAR SHIPMENT,
CUSTOMS MAY EXCLUDE THAT SHIPMENT FROM NCAP\P PROCESSING.
PARTICIPANTS WHO ARE UNABLE TO RELIABLY PROVIDE TIMELY
TRANSMISSION OF REQUIRED DATA MAY BE SUSPENDED FROM FURTHER
PARTICIPATION IN THIS PROTOTYPE; AND
6. BE CAPABLE AND\OR AGREE TO ARRANGE FOR ELECTRONIC PAYMENT OF
DUTIES, TAXES AND FEES. PARTICIPANTS WHO ARE UNABLE TO RELIABLY
PROVIDE TIMELY TRANSMISSION OF REQUIRED PAYMENTS MAY BE SUSPENDED
FROM FURTHER PARTICIPATION IN THIS PROTOTYPE.
FOR NCAP\P, THE FOLLOWING RESTRICTIONS WILL BE PLACED UPON
IMPORTERS:
1. IMPORTERS MUST ENTER MERCHANDISE IDENTIFIED IN THE
APPLICATION AS BEING FROM THEIR TYPICAL COMMODITIES IN THEIR
ESTABLISHED LINES OF BUSINESS AND COMING FROM PRE-IDENTIFIED
SELLERS AND SHIPPERS;
2. IMPORTERS MUST ENTER ONLY THE MERCHANDISE IDENTIFIED IN THE
APPLICATION AS BEING WITHIN A RANGE OF PRE-IDENTIFIED COMMODITIES
(CLASSIFIED AT THE 6-DIGIT HTS LEVEL);
3. IMPORTERS MUST ENTER MERCHANDISE CONVEYED ON TRUCKS OPERATED
BY CARRIERS PRE-IDENTIFIED BY PARTICIPANTS IN THE APPLICATION;
AND
4. IMPORTERS MUST ENTER MERCHANDISE FOR RELEASE INTO THE
COMMERCE UNDER A CONSUMPTION ENTRY AT THE PORT OF ARRIVAL.
5. IMPORTERS MUST ENTER MERCHANDISE AT THE PORT OF LAREDO,
TEXAS(COLOMBIA BRIDGE ONLY), OR AT DETROIT OR PORT HURON,
MICHIGAN;
IMPORTERS MAY NOT ENTER MERCHANDISE IN THE NCAP\P IF IT IS
SUBJECT TO ANTIDUMPING OR COUNTERVAILING DUTY, QUOTA, TRADE
PREFERENCE LEVEL OR VISA REQUIREMENTS, OR PRE-RELEASE REPORTING
REQUIREMENTS IMPOSED BY OTHER FEDERAL AGENCIES. NO PROHIBITED OR
EMBARGOED MERCHANDISE WILL BE PERMITTED IN PROTOTYPE SHIPMENTS.
IN ADDITION, IMPORTERS MAY NOT ENTER NCAP\P MERCHANDISE INTO A
WAREHOUSE OR FOREIGN TRADE ZONE, OR AS AN IN-BOND ENTRY.
IMPORTERS ARE RESPONSIBLE FOR ENSURING THAT INELIGIBLE
MERCHANDISE IS NOT INCLUDED IN NCAP\P SHIPMENTS, AND THAT ALL
SHIPMENTS ABOARD A CONVEYANCE ARE ELIGIBLE FOR NCAP\P PROCESSING.
CUSTOMS WILL 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 SUSPENDED FROM FURTHER NCAP\P
PARTICIPATION.
III. 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 ALL THEIR SHIPPERS FOR NCAP\P;
3. NAMES AND ADDRESSES OF ALL THEIR SELLER\VENDORS FOR NCAP\P,
AND, FOR EACH SELLER\VENDOR IDENTIFIED, A LISTING OF ALL THE 6-
DIGIT HTS NUMBERS IN WHICH THE COMMODITIES TO BE IMPORTED ARE
CLASSIFIED;
4. THE ISSUER AND NUMBER OF THE CONTINUOUS SURETY BOND WHICH
WILL COVER ALL CARGO PROCESSED UNDER NCAP\P PROCEDURES;
5. NAMES AND ADDRESSES OF TRUCK CARRIERS WHO WILL BE
TRANSPORTING NCAP\P SHIPMENTS ACROSS THE INTERNATIONAL BORDERS;
6. NAMES AND ADDRESSES OF ANY CUSTOMS BROKERS WHO WILL BE FILING
DECLARATION DATA;
7. THE APPROXIMATE TOTAL NUMBER OF ENTRIES PER MONTH EXPECTED TO
BE PROCESSED AT EACH OF THE FOLLOWING LOCATIONS:
COLOMBIA BRIDGE, LAREDO;
AMBASSADOR BRIDGE, DETROIT;
WINDSOR TUNNEL, DETROIT;
BLUE WATER BRIDGE, PORT HURON;
8. DESCRIPTION OF ANTICIPATED ISSUES (FROM THE ELIGIBLE ISSUES
LISTED IN SECTION VI OF THIS NOTICE) AND COMMODITIES FOR WHICH
THE PARTICIPANT ANTICIPATES ELECTING RECONCILIATION;
9. FOR APPLICANTS NOT ALREADY SCHEDULED FOR OR PARTICIPATING IN A
CUSTOMS COMPLIANCE ASSESSMENT, A STATEMENT IN WHICH THE APPLICANT
INDICATES AGREEMENT TO UNDERGO AND COOPERATE FULLY WITH A CUSTOMS
COMPLIANCE ASSESSMENT.
CUSTOMS WILL MAKE ADMISSIBILITY DETERMINATIONS ON NCAP\P
SHIPMENTS BASED ON ANY CARGO EXAMINATIONS AND THE INFORMATION
SUPPLIED WITH THE APPLICATION, WHICH SHALL SERVE AS A PRE-FILED
ENTRY FOR NCAP\P PURPOSES.
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 BASED ON DEFICIENCIES IN
THE APPLICATION, 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. PREFERENCE WILL BE GIVEN TO APPLICANTS WHO
INDICATE THAT THEY PLAN TO MAINTAIN AN AVERAGE OF AT LEAST 25
ENTRIES PER MONTH THROUGHOUT THE PROTOTYPE PERIOD. ELIGIBLE
IMPORTERS WHOSE INITIAL APPLICATIONS ARE REJECTED MAY RE-APPLY IF
CUSTOMS SUBSEQUENTLY OPENS PARTICIPATION TO ADDITIONAL
PARTICIPANTS. CUSTOMS WILL PUBLISH A NOTICE IN THE FEDERAL
REGISTER IF AN EXPANSION OF PARTICIPATION IS PLANNED.
IV. 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 PROVIDED IN THE APPLICATION. THIS NOTIFICATION
WILL BE CONSIDERED AN AMENDMENT TO THE APPLICATION. BY
NOTIFICATION OF THE PARTICIPATING IMPORTER, CUSTOMS MAY REQUIRE
THAT THE PARTICIPANT NOT USE A PARTICULAR CARRIER, SHIPPER, OR
SELLER, AND NOT ENTER PARTICULAR MERCHANDISE UNDER THIS
PROTOTYPE.
V. 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. TO QUALIFY FOR REMOTE LOCATION FILING, A FILER MUST BE
ABLE TO ELECTRONICALLY TRANSMIT INFORMATION ON A SHIPMENT BY
SHIPMENT BASIS, INCLUDING ENTRY SUMMARY, INVOICE INFORMATION
(WHEN REQUIRED BY CUSTOMS), AND PAYMENT OF DUTIES, FEES, AND
TAXES. USE OF THE REMOTE LOCATION FILING COMPONENT OF THE
PROTOTYPE IS VOLUNTARY, BUT THE SAME ELECTRONIC DATA TRANSMISSION
REQUIREMENTS WILL APPLY FOR ALL PROTOTYPE PARTICIPANTS.
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.
VI. RECONCILIATION
CURRENTLY THERE ARE TWO RECONCILIATION PROTOTYPES IN
OPERATION OR BEING IMPLEMENTED, IN ADDITION TO THE NCAP\P. THE
RECONCILIATION TEST OF ANTIDUMPING AND COUNTERVAILING DUTIES WAS
PUBLISHED ON MAY 10, 1996 (61 FR 21534). THE "MANUAL"
RECONCILIATION TEST, WHICH COVERS RECONCILIATION OF CERTAIN VALUE
ISSUES, WAS PUBLISHED ON FEBRUARY 6, 1997 (62 FR 5673). (IN 1995
A NOTICE WAS PUBLISHED IN THE FEDERAL REGISTER CONCERNING A
RECONCILIATION PROTOTYPE FOR RELATED PARTY IMPORTERS MAKING
UPWARD ADJUSTMENTS TO THE PRICE OF IMPORTED MERCHANDISE, PURSUANT
TO 26 U.S.C. 482. THIS PROTOTYPE DID NOT BECOME OPERATIONAL.)
IMPORTERS ARE REMINDED THAT REASONABLE CARE IS REQUIRED FOR
ALL PHASES OF RECONCILIATION, INCLUDING, BUT NOT LIMITED TO,
SUBMITTING INFORMATION ON THE UNDERLYING ENTRIES, FLAGGING THE
UNDERLYING ENTRIES FOR RECONCILIATION, GROUPING THE OUTSTANDING
ISSUE(S) FROM THE RANGE OF ENTRIES ONTO THE RECONCILIATION AND
PROVIDING THE FINAL INFORMATION ON THE 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 THE NCAP\P, RECONCILIATION
WILL ALLOW PARTICIPATING IMPORTERS TO IDENTIFY THE FOLLOWING
ISSUES FOR WHICH COMPLETE INFORMATION IS UNAVAILABLE AT THE TIME
OF ENTRY SUMMARY FILING:
1.NAFTA
2.VALUE
3.9802
4.CLASSIFICATION
CLASSIFICATION ISSUES WILL BE ELIGIBLE FOR RECONCILIATION
ONLY WHEN SUCH ISSUES HAVE BEEN FORMALLY ESTABLISHED AS THE
SUBJECT OF AN ADMINISTRATIVE RULING, PROTEST, PETITION, OR COURT
ACTION. RECONCILIATIONS OF CLASSIFICATION ISSUES MAY RESULT IN A
TARIFF SHIFT WHICH FALLS WITHIN THE PRE-IDENTIFIED RANGE OF 6-
DIGIT HTS PROVISIONS. GENERALLY, THE EXERCISE OF REASONABLE CARE
SHOULD ENSURE THAT RECONCILIATIONS DO NOT RESULT IN A TARIFF
SHIFT OUTSIDE THE PRE-IDENTIFIED RANGE OF 6-DIGIT HTS PROVISIONS;
HOWEVER, IF SPECIAL CIRCUMSTANCES JUSTIFY A TARIFF SHIFT OUTSIDE
THE PRE-IDENTIFIED RANGE OF 6-DIGIT HTS NUMBERS CONTAINED IN THE
APPLICATION, A PARTICIPANT MUST SUBMIT AN AMENDED APPLICATION
REQUESTING PERMISSION TO CONTINUE TO ENTER SUCH MERCHANDISE IN
THIS PROTOTYPE.
RECONCILIATIONS OF NAFTA ISSUES MUST BE ELECTRONICALLY FILED
WITHIN ONE YEAR OF THE DATE OF IMPORTATION OF THE OLDEST ENTRY
WHICH IS FLAGGED FOR THE RECONCILIATION. RECONCILIATION IS A
VEHICLE WHICH AN IMPORTER CAN USE TO FILE POST-IMPORTATION REFUND
CLAIMS UNDER 19 U.S.C. 1520(D). CONSEQUENTLY, A FAILURE TO FILE
A NAFTA RECONCILIATION WITHIN ONE YEAR OF THE DATE OF IMPORTATION
WILL PRECLUDE THE GRANTING OF NAFTA TARIFF TREATMENT. AS SUCH,
NAFTA RECONCILIATIONS ARE SUBJECT TO THE OBLIGATIONS UNDER 19 CFR
PART 181, SUBPART D. NAFTA RECONCILIATIONS MUST BE SUPPORTED BY
IMPORTER POSSESSION OF THE DOCUMENTS REQUIRED UNDER 19 U.S.C.
1520(D) AND 19 CFR PART 181.32(B). PRESENTATION OF THE NAFTA
CERTIFICATE OF ORIGIN TO CUSTOMS IS WAIVED FOR THE PURPOSES OF
THIS PROTOTYPE TEST, AND THE FILER MUST RETAIN THESE DOCUMENTS,
WHICH SHALL BE PROVIDED TO CUSTOMS UPON REQUEST. FILERS ARE
REMINDED THAT INTEREST SHALL ACCRUE FROM THE DATE ON WHICH THE
CLAIM FOR NAFTA ELIGIBILITY IS MADE (THE DATE OF THE
RECONCILIATION) TO THE DATE OF LIQUIDATION OR RELIQUIDATION OF
THE RECONCILIATION.
RECONCILIATIONS OF CLASSIFICATION, 9802 AND\OR VALUE ISSUES
MUST BE ELECTRONICALLY FILED WITHIN 15 MONTHS OF THE DATE OF
ENTRY SUMMARY FILING FOR THE OLDEST ENTRY FLAGGED FOR THE
RECONCILIATION. 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.
ENTRY SUMMARIES MAY BE FLAGGED FOR RECONCILIATION UNTIL THE
CLOSE OF THE TEST PERIOD. IT IS IMPORTANT TO NOTE THAT, ALTHOUGH
THE TEST PERIOD HAS CONCLUDED, RECONCILIATIONS MAY BE FILED AND
LIQUIDATED AFTER THE CLOSING DATE OF THE TEST.
ONLY CONSUMPTION ENTRIES MAY BE FILED IN THE NCAP\P SYSTEM.
ENTRIES SUBJECT TO RECONCILIATION WILL BE FLAGGED AT THE HEADER
LEVEL WITH AN ELECTRONIC INDICATOR SPECIFYING THE ISSUE(S) TO BE
RECONCILED.
THE FLAGGING OF AN ENTRY FOR RECONCILIATION WILL SERVE AS
THE NOTICE OF INTENT TO FILE A RECONCILIATION ("NOTICE OF INTENT"
), AND WILL PERMIT THE LIQUIDATION OF AN ENTRY AS TO ALL ISSUES
OTHER THAN THOSE WHICH ARE FLAGGED FOR RECONCILIATION. BY
FILING A NOTICE OF INTENT, THE IMPORTER VOLUNTARILY REQUESTS AND
ACCEPTS THAT EACH ISSUE FLAGGED FOR RECONCILIATION, AND THE
LIABILITY FOR EACH ISSUE, IS SEPARATED FROM THE ENTRY, REMAINS
OPEN AND IS TRANSFERRED TO THE RECONCILIATION. THE NOTICE OF
INTENT OPENS AN OBLIGATION FOR THE IMPORTER TO FILE THE
RECONCILIATION. THIS OBLIGATION ALSO APPLIES TO NAFTA
RECONCILIATIONS EVEN IF THE PARTICIPANT FINALLY CONCLUDES IT
CANNOT FILE A VALID 520(D) CLAIM, IN WHICH INSTANCE, THE NAFTA
RECONCILIATION WOULD BE FILED AS NO CHANGE.
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 WILL BE
LIQUIDATED UPON REVIEW BY CUSTOMS. THE LIQUIDATION OF THE
RECONCILIATION MAY BE PROTESTED BUT THE PROTEST MAY ONLY PERTAIN
TO ISSUES CONTAINED IN THE LIQUIDATED RECONCILIATION, I.E., THE
PROTEST MAY NOT RE-VISIT ISSUES PREVIOUSLY LIQUIDATED IN THE
ENTRY. SEPARATE BULLETIN NOTICES OF LIQUIDATION WILL BE POSTED
FOR THE LIQUIDATION OF THE UNDERLYING ENTRIES AND FOR THE
LIQUIDATION OF THE RECONCILIATION.
UNDER THE STATUTORY MANDATE OF 19 U.S.C. 1484, THE IMPORTER
IS RESPONSIBLE FOR USING REASONABLE CARE IN DECLARING AT ENTRY
THE PROPER VALUE, CLASSIFICATION AND RATE OF DUTY APPLICABLE TO
IMPORTED MERCHANDISE. INHERENT IN THE CONCEPT OF RECONCILIATION
IS THE FACT THAT, BECAUSE CERTAIN ISSUES ARE KEPT OPEN PENDING
FILING OF THE RECONCILIATION, THE INFORMATION REGARDING THESE
ISSUES AND THE RESULTING LIABILITY FOR THE DUTIES, TAXES AND FEES
PREVIOUSLY ASSERTED BY THE IMPORTER MAY CHANGE WHEN THE
RECONCILIATION IS FILED. THEREFORE, SHOULD ANY DRAWBACK CLAIM OR
CERTIFICATE OF DELIVERY FOR DRAWBACK BE FILED ON IMPORT ENTRIES
WHICH ARE FLAGGED FOR RECONCILIATION, CUSTOMS WILL PAY
ACCELERATED DRAWBACK ONLY AFTER THE RECONCILIATION IS FILED.
UPON FILING OF THE RECONCILIATION, THE IMPORTER IS RESPONSIBLE
FOR INDICATING WHETHER ANY UNDERLYING ENTRY COULD BE SUBJECT TO
DRAWBACK. IN THE CASE OF A DRAWBACK CLAIM AND A RECONCILIATION
REFUND AGAINST THE SAME UNDERLYING ENTRIES, THE IMPORTER IS
RESPONSIBLE FOR ENSURING THAT REFUNDS IN EXCESS OF THE DUTIES
PAID ARE NOT FILED WITH CUSTOMS AND FOR SUBSTANTIATING HOW THE
SEPARATE REFUND REQUESTS APPLY TO DIFFERENT MERCHANDISE.
A RECONCILIATION MAY COVER ANY COMBINATION OF VALUE, 9802
AND CLASSIFICATION. SHOULD THE ISSUES OF VALUE, 9802 AND
CLASSIFICATION BE FLAGGED FOR RECONCILIATION ON ONE ENTRY, ONE
RECONCILIATION COVERING ALL THREE ISSUES WILL BE FILED. NAFTA
RECONCILIATIONS WILL NOT BE COMBINED WITH OTHER ISSUES, BECAUSE
OF NAFTA'S UNIQUE NATURE, DIFFERENT DUE DATES, AND SO THAT
CUSTOMS MAY EXPEDITE THE PROCESSING OF SUCH REFUNDS. ISSUES WILL
ALWAYS BE RECONCILED IN THEIR ENTIRETY, AS OPPOSED TO PARTIAL
RECONCILIATIONS. EACH RECONCILIATION SHOULD COVER NO FEWER THAN
TEN ENTRIES. RECONCILIATION IS TO BE USED TO GROUP ENTRIES
TOGETHER FOR A COMMON, OUTSTANDING ISSUE.
A RECONCILIATION IS TREATED AS A LEGAL ENTRY FOR PURPOSES OF
LIQUIDATION, RELIQUIDATION AND PROTEST. FOR PURPOSES OF THIS
PROTOTYPE, EACH RECONCILIATION MUST BE COVERED BY ONE SURETY,
I.E., TWO SURETIES CANNOT COVER THE SAME RECONCILIATION. THE
CONTINUOUS BOND OBLIGATED ON THE UNDERLYING ENTRIES WILL BE USED
TO COVER THE RECONCILIATION.
PAYMENTS DUE FROM THE PARTICIPANT AS A RESULT OF THE
RECONCILIATION WILL BE REFLECTED ON THE PARTICIPANT'S MONTHLY
STATEMENT. SHOULD THE RECONCILIATION RESULT IN A REFUND DUE THE
PARTICIPANT, THE REFUND WILL ALSO APPEAR ON THE MONTHLY STATEMENT
AND WILL BE USED TO OFFSET EXISTING OR FUTURE PAYMENT OBLIGATIONS
OF THE PARTICIPANT. CUSTOMS WILL CALCULATE INTEREST UPON
LIQUIDATION OF THE RECONCILIATION, AND REFLECT SUCH INTEREST ON
THE MONTHLY STATEMENT.
THE RECONCILIATION HEADER WILL CONTAIN THE RECONCILIATION
NUMBER, THE DATE OF RECONCILIATION FILING, THE ISSUE(S) BEING
RECONCILED AND THE COMMENTS. IN THE COMMENT FIELD, THE FILER MAY
PROVIDE PERTINENT INFORMATION, TO EXPLAIN, FOR EXAMPLE, THAT THE
SPECIFIC VALUE ISSUE WITHIN THIS RECONCILIATION IS AN ASSIST
DECLARATION.
FOLLOWING THIS SUMMARY INFORMATION, THERE WILL BE TWO PARTS
OF THE RECONCILIATION. THE FIRST PART WILL INCLUDE A LIST OF
UNDERLYING ENTRY NUMBERS, ENTRY SUMMARY DATES, AND THE TOTAL
DUTY, TAXES AND FEES (REPORTED BY CLASS CODE) WHICH SHOULD HAVE
BEEN PAID FOR EACH OF THE UNDERLYING ENTRIES HAD THE COMPLETE
INFORMATION BEEN AVAILABLE TO THE IMPORTER AT THE TIME OF FILING
OF THE ENTRY SUMMARY. THIS PART OF THE RECONCILIATION WILL ALSO
HAVE A FIELD TO INDICATE ENTRIES BEING CLOSED OUT ON THE
RECONCILIATION WHICH DID NOT CHANGE.
PART TWO OF THE RECONCILIATION WILL LIST ALL OF THE LINES ON
THE FLAGGED ENTRIES WHICH CHANGED AS A RESULT OF THE
RECONCILIATION. DATA ELEMENTS FOR EACH LINE INCLUDE ENTRY
NUMBER, SPI IF APPLICABLE, HTS, COUNTRY OF ORIGIN, QUANTITY IF
APPLICABLE, TOTAL VALUE AND THE TOTAL DUTIES, TAXES AND FEES
(REPORTED BY CLASS CODE). THE "TOTAL" FIGURES WILL REPRESENT
THAT WHICH WAS REPORTED ON THE UNDERLYING ENTRY PLUS THE CHANGE
PURSUANT TO THE RECONCILIATION. IN COORDINATION WITH THE CENSUS
BUREAU, CUSTOMS IS ANALYZING THE ASSIGNMENT OF A PARAMETER, BELOW
WHICH THE REPORTING OF RECONCILED LINES (PART 2) WOULD NOT BE
REQUIRED.
THE REPORTING OF LINE ITEMS IS AN INTERIM STEP BEING TAKEN
FOR THE PURPOSES OF GAINING EXPERIENCE IN THE SHORT TERM. WHILE
THE RECONCILIATION WILL CAPTURE LINE ITEM DETAILS FOR THIS
PROTOTYPE, CUSTOMS IS WORKING TOWARD CAPTURING THE RECONCILED
INFORMATION AT AN AGGREGATE LEVEL FOR FUTURE PROTOTYPES, WHICH
WILL INCORPORATE COMPENSATING CONTROLS AS A MEANS TO ENSURE THAT
FINANCIAL SAFEGUARDS ARE IN PLACE.
THE FOLLOWING WILL SERVE AS AN EXAMPLE OF THE PROBABLE
STRUCTURE FOR THE RECONCILIATION:
RECONCILIATION #557 DATE: 2\1\97 ISSUE: NAFTA
PART 1:
ENTRY SUMMARY TOTAL TOTAL TOTAL NO CHANGE
DATE DUTIES TAXES FEES
^499|
123 10\11\96 $25 $2.89
234 11\11\96 X
345 12\11\96 $200 $6.10
PART 2:
ENTRY SPI\HTS COUNTRY QTY TOTAL TOTAL TOTAL TOTAL
OF VALUE DUTY TAXES FEES
ORIGIN ^KG| ^499|
123 2222 MX 0 $ 0 $ 0 $ 0
123 MX2222 MX 700 $1000 $ 0 $1.90
123 3333 MX 500 $ 250 $ 25 $0.52
123 MX3333 MX 500 $ 250 $ 0 $0.47
345 2222 MX 750 $1500 $150 $3.15
345 MX2222 MX 250 $ 500 $ 0 $0.95
345 3333 MX 200 $ 500 $ 50 $1.05
345 MX3333 MX 200 $ 500 $ 0 $0.95
VII. ACCOUNT-BASED IMPORT DECLARATION PROCESS
THE ACCOUNT-BASED DECLARATION PROCESS IS A FULLY ELECTRONIC
PROCESS THAT WILL, FOR NCAP\P PARTICIPANT IMPORTERS, WHO MUST
FILE CONSUMPTION ENTRIES UNDER NCAP\P:
1. BASE CARGO EXAMINATION DECISIONS PRIMARILY ON PRE-ESTABLISHED
ACCOUNT\ENTRY INFORMATION, MINIMIZING THE TRANSACTION DATA THAT
NEEDS TO BE TRANSMITTED TO CUSTOMS PRIOR TO RELEASE OF CARGO.
CARGO EXAMINATIONS WILL ALSO BE PERFORMED ON THE BASIS OF
SELECTIVITY CRITERIA AND FOR RANDOM COMPLIANCE MEASUREMENT
SAMPLING;
2. PERMIT REPORTING OF DETAILED ENTRY SUMMARY DATA ON A MONTHLY
CYCLE, AND
3. 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:
1. THE APPLICATION WILL SERVE AS A PRE-FILED ENTRY FOR NCAP\P
PURPOSES.
2. 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.
3. 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.)
4. 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.
5. 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.
6. FOR EACH SHIPMENT RELEASED DURING A CALENDAR MONTH, THE ENTRY
FILER MUST ELECTRONICALLY TRANSMIT COMPLETE ENTRY SUMMARY DATA TO
CUSTOMS ON OR BEFORE THE FILING DEADLINE FOR THAT MONTH. THE
FILING DEADLINE FOR EACH MONTH WILL BE THE 10TH CALENDAR DAY OF
THE FOLLOWING MONTH, OR, IF THE 10TH FALLS ON A WEEKEND OR
HOLIDAY, THE NEXT BUSINESS DAY. 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 DEADLINE WILL BE CONSIDERED AS
FILED ON THE DEADLINE DATE. ANY ISSUES THAT MAY BE THE SUBJECT
OF A FUTURE RECONCILIATION MUST BE IDENTIFIED IN THE ENTRY
SUMMARY DATA.
7. 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.
8. BY VIRTUE OF 19 CFR 101.9, THE CUSTOMS SERVICE MAY IMPOSE
REQUIREMENTS DIFFERENT THAN THOSE SPECIFIED IN THE CUSTOMS
REGULATIONS; BUT ONLY TO THE EXTENT THAT SUCH DIFFERENT
REQUIREMENTS DO NOT AFFECT THE COLLECTION OF REVENUE.
CONSEQUENTLY, IN ORDER TO PERMIT A DIFFERENT PROCEDURE TO TEST
THE PERIODIC DEPOSIT OF ESTIMATED DUTIES WITHOUT ADVERSELY
AFFECTING THE COLLECTION OF REVENUE, THE PARTICIPANT MUST AGREE
TO AND ABIDE BY THE FOLLOWING PROCEDURES. EACH PARTICIPATING
IMPORTER ACCOUNT WILL MAKE SEMI-MONTHLY PRELIMINARY ESTIMATED
PAYMENTS THROUGH AN ELECTRONIC MEDIUM. PRELIMINARY ESTIMATED
PAYMENTS WILL BE INITIATED ELECTRONICALLY USING ACH CREDIT ON THE
15TH AND THE LAST DAY OF THE MONTH. IF THE 15TH OR THE LAST DAY
OF THE MONTH FALLS ON A WEEKEND OR HOLIDAY, THE PAYMENT MUST BE
INITIATED THE NEXT BUSINESS DAY. UNDER THE PROTOTYPE, SPECIAL
ELECTRONIC PAYMENT PROCEDURES WILL BE UTILIZED. THE PRELIMINARY
ESTIMATED PAYMENTS WILL BE BASED UPON THE FOLLOWING PERCENTAGES:
A) THE PAYMENT INITIATED ON THE 15TH WILL BE 75% OF THE ESTIMATED
AMOUNT DUE ON ALL RELEASES FOR THE 1-15TH OF THE MONTH, B) THE
PAYMENT INITIATED ON THE LAST DAY OF THE MONTH WILL BE 57% OF THE
ESTIMATED AMOUNT DUE ON ALL RELEASES FROM THE 16TH TO THE LAST
DAY OF THE MONTH. THESE PERCENTAGES WILL BE REVIEWED AND MAY
HAVE TO BE ADJUSTED TO MAINTAIN REVENUE NEUTRALITY. PAYMENT FOR
THE REMAINING BALANCE WILL BE INITIATED ELECTRONICALLY ON THE
15TH OF THE FOLLOWING MONTH, AND IT IS THIS DATE WHICH CUSTOMS
AND THE PARTICIPANTS AGREE WILL SERVE AS THE DATE OF ACTUAL
DEPOSIT OF ESTIMATED DUTIES AND FEES FOR PURPOSES OF ASSESSING
INTEREST UNDER 19 U.S.C. 1505. 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.
9. 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.
VIII. SUSPENSION FROM PROTOTYPE
IF A PARTICIPANT ATTEMPTS TO ENTER OR SUBMIT DATA RELATING
TO PROHIBITED MERCHANDISE, MERCHANDISE SUBJECT TO QUOTA OR
ANTIDUMPING OR COUNTERVAILING DUTIES, OR OTHER NON-ELIGIBLE
MERCHANDISE; OR IF A PARTICIPANT FILES NON-CONSUMPTION ENTRIES;
FILES ERRONEOUS OR UNTIMELY DATA; FAILS TO PROVIDE REQUESTED
INVOICE DATA OR SUFFICIENT SUPPORTING DOCUMENTATION FOR
RECONCILIATIONS; MAKES LATE OR INADEQUATE PAYMENTS; FAILS TO
EXERCISE REASONABLE CARE IN THE EXECUTION OF PARTICIPANT
OBLIGATIONS; OR OTHERWISE FAILS TO FOLLOW THE PROCEDURES OUTLINED
HEREIN, AND APPLICABLE LAWS AND REGULATIONS, THEN THE PARTICIPANT
MAY BE SUSPENDED FROM THE PROTOTYPE, AND\OR BE SUBJECT TO
PENALTIES.
ANY DECISION SUSPENDING PARTICIPATION MAY BE APPEALED TO THE
TRADE COMPLIANCE PROCESS OWNER, WITHIN 15 DAYS OF THE DECISION
DATE.
IX. REGULATORY PROVISIONS SUSPENDED
CERTAIN PROVISIONS OF PARTS 24, 111, 141, 142, 143 AND 159
OF THE CUSTOMS REGULATIONS (19 CFR PARTS 24, 111, 141, 142, 143
AND 159) WILL BE SUSPENDED DURING THIS PROTOTYPE TEST TO ALLOW
FOR MONTHLY FILING OF ENTRY SUMMARY DATA, PERIODIC PAYMENT OF
DUTIES, TAXES AND FEES, RECONCILIATION FOR NAFTA, CLASSIFICATION,
VALUE AND 9802 ISSUES, LIQUIDATION, BILLING AND REMOTE FILING BY
CUSTOMS BROKERS IN PORTS WHERE THEY CURRENTLY DO NOT HOLD
PERMITS.
ABSENT ANY SPECIFIED ALTERNATE PROCEDURE, THE CURRENT
REGULATIONS APPLY.
X. PROTOTYPE EVALUATION
ONCE THE IMPORTERS ARE SELECTED FOR NCAP\P, THE JOINT
PROTOTYPE TEAM WILL, DURING THE INITIAL SIX MONTHS OF THE TEST
PERIOD, EVALUATE THE EFFECTIVENESS OF THE AUTOMATION INVOLVED.
SUBSEQUENT 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 THE FACT OF 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 AND THE CUSTOMS BULLETIN AS
REQUIRED BY 101.9(B), CUSTOMS REGULATIONS AND REPORTED TO
CONGRESS.
DATED: ACTING ASSISTANT COMMISSIONER
OFFICE OF FIELD OPERATIONS