CSMS Message: 98-001155

TO : ALL ABI BROKERS.

FROM : JENNIFER ZZ-ENGELBAC

SUBJECT : RLF FED. REG. EXTENSION

DATE : 12/08/1998

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AUTHOR: JENNIFER ZZ-ENGELBACH
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TO: ALL INTERESTED PARTIES

THE GENERAL NOTICE, (COPY FOLLOWS), ENTITLED "EXTENSION OF NATIONAL
CUSTOMS AUTOMATION PROGRAM TEST REGARDING REMOTE LOCATION FILING" WAS
BE PUBLISHED IN THE FEDERAL REGISTER ON MONDAY, DECEMBER 7, 1997.
REMOTE LOCATION FILING PROTOTYPE TWO WILL BE EXTENDED FOR AN ADDITIONAL
YEAR.

4820-02-P
DEPARTMENT OF THE TREASURY
U.S. CUSTOMS SERVICE
EXTENSION 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 SECOND EXTENSION OF
THE SECOND PROTOTYPE OF REMOTE LOCATION FILING (RLF). THIS
NOTICE ALSO INVITES PUBLIC COMMENTS CONCERNING ANY ASPECT OF
THE CURRENT 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.
BASED ON OUR EXPERIENCE IN THE EXTENSION OF THE SECOND
PROTOTYPE OF RLF, WE HAVE MADE MODIFICATIONS TO THE
SECTIONS DETAILING ELIGIBILITY CRITERIA, PROTOTYPE TWO
APPLICATIONS, AND MISCONDUCT. THE CHANGES TO THE PROTOTYPE
TWO APPLICATIONS WILL AFFECT PARTIES WHO WISH TO APPLY FOR
PARTICIPATION IN THE EXTENSION OF THE SECOND PROTOTYPE OF
RLF. CURRENT PARTICIPANTS MAY CONTINUE THEIR PARTICIPATION
WITHOUT REAPPLYING.
EFFECTIVE DATE: THE EXTENSION OF THE SECOND PROTOTYPE WILL
COMMENCE NO EARLIER THAN JANUARY 1, 1999, WILL CONTINUE, AND
BE CONCLUDED, NO EARLIER THAN DECEMBER 31, 1999, BY A NOTICE
IN THE FEDERAL REGISTER. COMMENTS CONCERNING ANY ASPECT OF
THE REMOTE FILING PROTOTYPE TEST MUST BE RECEIVED ON OR
BEFORE JANUARY 6, 1998..
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, 1300 PENNSYLVANIA
AVENUE, N.W. ROOM 5.2 A, WASHINGTON, D.C. 20229-0001.
FOR FURTHER INFORMATION CONTACT:
FOR SYSTEMS OR AUTOMATION ISSUES: JOSEPH PALMER (202) 927-
0173, JACKIE JEGELS (301) 893-6717, OR PATRICIA WELTER (305)
869-2782.
FOR OPERATIONAL OR POLICY ISSUES: JENNIFER ENGELBACH (202)
927-2293, OR BONNIE BRIGMAN (202) 927-0294.
1 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).
THE REMOTE LOCATION FILING (RLF) PROTOTYPE WILL ALLOW
AN APPROVED 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 FROM WITHIN THE PORT OF ARRIVAL WITH A REQUESTED
DESIGNATED EXAM SITE (DES) OUTSIDE OF THE POA. 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, AS WELL AS POSTED INFORMATION ON THE CUSTOMS
ELECTRONIC BULLETIN BOARD (CEBB), THE CUSTOMS ADMINISTRATIVE
MESSAGE SYSTEM, AND THE CUSTOMS WEB SITE ON THE INTERNET AT "
HTTP://WWW.CUSTOMS.TREAS.GOV/RLF." 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. ON NOVEMBER 29, 1996, CUSTOMS ANNOUNCED IN THE FEDERAL
REGISTER (61 FR 60749) 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. ON DECEMBER 3, 1997, CUSTOMS ANNOUNCED IN THE FEDERAL
REGISTER (62 FR 64043) ITS PLAN TO EXTEND THE SECOND
PROTOTYPE THROUGH DECEMBER 31, 1998. IN TODAY'S DOCUMENT,
CUSTOMS IS ANNOUNCING THAT IT WILL PERMIT A SECOND EXTENSION
OF THE RLF PROTOTYPE TWO.
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 THE SECOND TEST UNDER ACS WITH
1 A LARGER PARTICIPANT POOL. REMOTE LOCATION FILING WILL BE A
CAPABILITY OF ACE.
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 THE 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 TRADE COMPLIANCE REDESIGN, AND ACE.
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 THE 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 AT THE NATIONAL LEVEL IN
CONJUNCTION WITH THE TRADE COMPLIANCE REDESIGN AND
ACE.
DESCRIPTION OF PROPOSED TEST
PROTOTYPE TWO COMMENCED JANUARY 1, 1997, AND WILL RUN
UNTIL CONCLUDED, NO EARLIER THAN DECEMBER 31, 1999, BY A
NOTICE IN THE FEDERAL REGISTER. PROTOTYPE TWO WILL
EVALUATE THE OPERATIONAL IMPACT AND PROCEDURES FOR A LARGER
PARTICIPANT BASE, AND TEST FILING FROM A REMOTE LOCATION AND
ALTERNATE LOCATION EXAMINATIONS.
REGULATORY PROVISIONS SUSPENDED
CERTAIN PROVISIONS IN PARTS 111 AND PART 141 OF THE
CUSTOMS REGULATIONS WILL BE SUSPENDED DURING THIS PROTOTYPE
TEST. THIS WILL ALLOW BROKERS TO FILE REMOTELY TO SERVICE
PORTS, DESIGNATED AS "BROKER DISTRICTS" IN ACCORDANCE WITH A
GENERAL NOTICE PUBLISHED IN THE FEDERAL REGISTER (60 FR
49971, DATED SEPTEMBER 27, 1995), WHERE THEY CURRENTLY DO
NOT HOLD PERMITS, AND ALLOW FOR THE MOVEMENT OF CARGO FROM
ITS POA TO A DES OUTSIDE OF THE POA.
ELIGIBILITY CRITERIA
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) WHEN REQUIRED BY
CUSTOMS; AND THE PAYMENT OF DUTIES, FEES, AND TAXES THROUGH
THE AUTOMATED CLEARINGHOUSE (ACH).
THE FOLLOWING ELEVEN REQUIREMENTS AND CONDITIONS APPLY:
1. PARTICIPANTS MUST BE OPERATIONAL ON ACH 30 DAYS
BEFORE APPLYING FOR PROTOTYPE TWO.
2. PARTICIPANTS MUST BE OPERATIONAL ON EIP BEFORE
APPLYING FOR PROTOTYPE TWO.
1 3. THE REQUESTED CUSTOMS LOCATIONS MUST HAVE
OPERATIONAL EXPERIENCE WITH EIP AND HAVE RECEIVED
RLF TRAINING.
RLF TRAINED LOCATIONS
THE FOLLOWING ARE LOCATIONS CURRENTLY OPERATIONAL
UNDER THE RLF PROTOTYPE TWO TEST AS BOTH PORTS OF
ARRIVAL (POA) AND DESIGNATED EXAMINATION SITES (DES).
ANCHORAGE, AK HOULTON, ME ORLANDO, FL
ATLANTA, GA HOUSTON, TX PASCAGOULA, MS
BALTIMORE, MD HUNTSVILLE, AL PHILADELPHIA/CHESTER
BATON ROUGE, LA INDIANAPOLIS, IN PORT EVERGLADES, FL
BOSTON, MA JACKSONVILLE, FL PORT HURON, MI
BRUNSWICK, GA JFK PORTLAND, ME
BUFFALO, NY KNOXVILLE, TN PORTLAND, OR
CALAIS, ME LAKE CHARLES, LA PORTLAND AIRPORT, OR
CHAMPLAIN-ROUSES PT, NY LAREDO/EAGLE PASS PROVIDENCE, RI
CHARLESTON, SC LAX RICHMOND, VA
CHARLOTTE, NC LITTLE ROCK, AR ROCHESTER, NY
CHATTANOOGA, TN LOGAN AIRPORT, MA SAN DIEGO, CA
CHICAGO, IL LONGVIEW, WA S.F./OAKLAND
CINCINNATI, OH L.A./LONG BEACH, CA SAVANNAH, GA
CLEVELAND, OH LOUISVILLE, KY SEATTLE, WA
COLUMBUS, OH MEMPHIS, TN SHREVEPORT, LA
DAYTON, OH MIAMI, FL SPRINGFIELD, MA
DALLAS/FORT WORTH, TX MORGAN CITY, LA TAMPA, FL
DEL RIO, TX MOBILE, AL TOLEDO, OH
DETROIT, MI NASHVILLE, TN UTICA/SYRACUSE, NY
DURHAM/RALEIGH, NC NEW BEDFORD, MA VICKSBURG/JACKSON,
ERIE, PA NEW ORLEANS, LA WEST PALM BEACH, FL
GLOUCESTER, MA NEWPORT NEWS, VA WILMINGTON, NC
GRAMERCY, LA NORFOLK, VA WINSTON-SALEM, NC
GREENVILLE-SPARTANBURG NY/NEWARK AREA WORCESTER, MA
GULFPORT, MS NY SEAPORT, NY WASHINGTON, DC

FUTURE RLF TRAINED LOCATIONS
AS THE PROTOTYPE CONTINUES AND TRADE INTEREST
WARRANTS, PORTS WHICH ARE NOT CURRENTLY TRAINED IN EIP
AND RLF PROCESSING WILL BE TRAINED. ANNOUNCEMENTS ON
NEWLY TRAINED PORTS WILL BE PLACED ON THE CEBB,
ADMINISTRATIVE MESSAGE SYSTEM, AND CUSTOMS WEB SITE ON
THE INTERNET. ONE CRITERIA FOR SELECTING A PORT FOR
TRAINING WILL BE INTEREST FROM THE TRADE. PARTICIPANTS
WHO WOULD LIKE TO EXPAND THEIR PARTICIPATION TO A NON-
TRAINED PORT, SHOULD SEND THE FOLLOWING INFORMATION TO
THE REMOTE FILING TEAM (AT THE ADDRESS LISTED AT THE
FRONT OF THIS DOCUMENT):
A. COMPANY NAME;
B. CONTACT NAME AND PHONE NUMBER;
C. IMPORTER NAME;
D. PORT(S) OF INTEREST; AND
E. THE ESTIMATED NUMBER OF ENTRIES A MONTH.
4. PARTICIPANTS MUST MAINTAIN A CONTINUOUS BOND WHICH
MEETS OR EXCEEDS THE NATIONAL GUIDELINES FOR BOND
SUFFICIENCY.
1 5. ONLY ENTRY TYPES 01 (CONSUMPTION) AND 11
(INFORMAL) WILL BE ACCEPTED.
6. CARGO RELEASE MUST BE CERTIFIED FROM THE ENTRY
SUMMARY (EI) TRANSACTION WITH THE EXCEPTION OF
IMMEDIATE DELIVERY EXPLAINED IN #7.
7. RLF 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 (AN
EI TRANSACTION IN ABI) WITH ELECTRONIC INVOICE
MUST BE TRANSMITTED.
8. PARTICIPANTS WILL NOT BE ALLOWED TO FILE A RLF
ENTRY INVOLVING CARGO THAT HAS ALREADY BEEN MOVED
USING IN-BOND PROCEDURES.
9. PARTICIPANTS WILL BE REQUIRED TO USE OTHER
GOVERNMENT AGENCY INTERFACES WHERE AVAILABLE.
10. WHEN NECESSARY, CARGO WILL BE EXAMINED AT THE
CUSTOMS PORT OF ARRIVAL, OR, AT CUSTOMS
DISCRETION, A FILER'S REQUESTED 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
IMPORTER'S BOND IS AUTOMATICALLY TRIGGERED
WHENEVER CUSTOMS DECIDES TO EXAMINE THE
MERCHANDISE AT A DES THAT IS NOT AT THE PORT OF
ARRIVAL.
11. 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 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. ALL APPLICATIONS MUST
INITIALLY BE SUBMITTED TO CUSTOMS (AT THE ADDRESS LISTED AT
THE FRONT OF THIS DOCUMENT). APPLICATIONS WILL BE ACCEPTED
UP TO 30 DAYS BEFORE THE CLOSE OF THE PROTOTYPE TWO
EXTENSION.
SINCE THIS IS AN EXTENSION OF REMOTE PROTOTYPE TWO,
CURRENT PARTICIPANTS MAY CONTINUE THEIR PARTICIPATION
WITHOUT REAPPLYING. NOTE THAT PARTICIPATION IN RLF
PROTOTYPE TWO IS NOT CONFIDENTIAL, AND THAT LISTS OF
PARTICIPANTS WILL BE MADE AVAILABLE TO THE PUBLIC. NEW
APPLICANTS WILL FOLLOW A TWO-STEP APPLICATION PROCESS.
FIRST STAGE APPLICATION
DURING THE FIRST STEP, THE FILER MUST SUBMIT THE
FOLLOWING INFORMATION TO U.S. CUSTOMS HEADQUARTERS
(ADDRESS CITED ABOVE):
1. FILER OR BROKER NAME, ADDRESS, FILER CODE AND
IRS#;
2. ELECTRONIC INVOICING PROGRAM STATUS AND STARTING
DATE;
3. ELECTRONIC PAYMENT (ACH) STATUS AND STARTING DATE;
4. SITE(S) FROM WHICH THE BROKER WILL BE TRANSMITTING
THE ELECTRONIC INFORMATION;
5. TYPE OF PROTOCOL: AII, EDIFACT OR BOTH; AND
6. POINT OF CONTACT.
SECOND STAGE APPLICATION
ONCE A FILER HAS RECEIVED WRITTEN APPROVAL FROM
U.S. CUSTOMS HEADQUARTERS TO PROCEED WITH THE SECOND
STEP OF THE APPLICATION PROCESS, THE FILER MUST SUBMIT
THE FOLLOWING INFORMATION TO THE PORT DIRECTOR(S)
OVERSEEING EACH REQUESTED POA AND DES LOCATION FOR EACH
CLIENT (IMPORTER):
1. PARTICIPATING IMPORTER NAME, TELEPHONE NUMBER,
CONTACT NAME, AND IMPORTER NUMBER;
2. SUPPLIER NAME, ADDRESS, AND MANUFACTURER'S NUMBER;
3. TYPES OF COMMODITIES TO BE IMPORTED;
4. OTHER GOVERNMENT AGENCY REQUIREMENTS;
5. SITE(S) FROM WHICH THE APPLICANT WILL BE
TRANSMITTING THE ELECTRONIC INFORMATION;
6. PORT NAME AND PORT CODE FOR PORT(S) OF ARRIVAL;
7. PORT NAME AND PORT CODE FOR DESIGNATED EXAMINATION
SITE(S) LOCATED NEAREST THE FINAL DESTINATION(S);
8. MONTHLY ENTRY VOLUME ANTICIPATED;
9. CARRIERS USED AND THEIR AUTOMATED MANIFEST SYSTEM
(AMS) STATUS;
10. MAIN CONTACT PERSON AND TELEPHONE NUMBER OF FILER;
AND
11. CERTIFICATION THAT A COPY OF THIS APPLICATION
LETTER HAS BEEN PROVIDED TO THE CLIENT NAMED IN
1 ITEM 1.
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.
FOR APPLICATION SCENARIOS REQUESTING A DES OUTSIDE OF THE
POA, THE COMPLIANCE RATE OF THE PARTIES INVOLVED WILL BE
TAKEN INTO CONSIDERATION.
THE BASIS FOR APPLICATIONS BEING APPROVED OR DENIED BY
THE PORT DIRECTOR(S) WILL INVOLVE ISSUES SUCH AS COMMODITY
DOCUMENTATION REQUIREMENTS AND WHETHER THE PORT HAS BEEN
TRAINED IN EIP/RLF.
UPON RECEIPT OF AN APPLICATION, THE PORT DIRECTOR OR
DESIGNATE, WILL SEND THE APPLICANT A LETTER OF
ACKNOWLEDGMENT. IF THERE ARE NO ISSUES TO BE RESOLVED, THE
APPLICATION WILL BE CONSIDERED APPROVED TWENTY (20) DAYS
FROM THE DATE OF THE ACKNOWLEDGMENT LETTER. IF THERE ARE
ISSUES TO BE RESOLVED PRIOR TO A DECISION ON THE
APPLICATION, THE PORT DIRECTOR OR DESIGNATE WILL SEND THE
APPLICANT, WITHIN TWENTY (20) DAYS, A LETTER INDICATING THAT
THE APPLICATION IS PENDING FURTHER REVIEW UNTIL JOINT
RESOLUTION OF THE ISSUES CAN BE ACHIEVED. IF THE
APPLICATION IS DENIED, THE PORT DIRECTOR OR DESIGNATE WILL
ISSUE A DENIAL LETTER WITH REASONS TO THE APPLICANT. IF
DENIED, THE APPLICANT MAY APPEAL TO THE REMOTE FILING TEAM
AT HEADQUARTERS IN WRITING WITHIN TWENTY (20) DAYS FROM THE
DATE OF DENIAL OR REAPPLY TO THE PORT DIRECTOR(S).
MISCONDUCT
IF A PROGRAM PARTICIPANT ATTEMPTS TO SUBMIT DATA FOR
MERCHANDISE SUBJECT TO QUOTA, ANTI-DUMPING DUTIES,
COUNTERVAILING DUTIES, OR OTHER NON-ELIGIBLE MERCHANDISE, OR
FAILS TO EXERCISE REASONABLE CARE IN THE EXECUTION OF
PARTICIPANT OBLIGATIONS AND THE FILING OF INFORMATION
REGARDING THE ADMISSIBILITY OF MERCHANDISE, AND DECLARING
THE CLASSIFICATION, VALUE, AND RATE OF DUTY APPLICABLE TO
THE MERCHANDISE, OR OTHERWISE FAILS TO FOLLOW THE PROCEDURES
(OUTLINED HEREIN) OR APPLICABLE LAWS AND REGULATIONS, THEN
THE PARTICIPANT MAY BE SUBJECT TO LIQUIDATED DAMAGES,
PENALTIES, AND/OR OTHER ADMINISTRATIVE SANCTIONS, EXPELLED
OR SUSPENDED FROM THE PROTOTYPE, AND/OR PREVENTED FROM
PARTICIPATION IN FUTURE PROTOTYPES. CUSTOMS HAS THE
DISCRETION TO SUSPEND PROTOTYPE PARTICIPATION BASED ON THE
DETERMINATION THAT AN UNACCEPTABLE COMPLIANCE RISK EXISTS.
THIS SUSPENSION MAY BE INVOKED AT ANY TIME AFTER ACCEPTANCE
IN THE PROTOTYPE.
ANY DECISION PROPOSING SUSPENSION OF A PARTICIPANT MAY
BE APPEALED IN WRITING TO THE HEADQUARTERS REMOTE TEAM
WITHIN TWENTY (20) DAYS OF THE DECISION DATE. SUCH PROPOSED
SUSPENSION WILL APPRISE THE PARTICIPANT OF THE FACTS OR
CONDUCT WARRANTING SUSPENSION. SHOULD THE PARTICIPANT
APPEAL THE NOTICE OF PROPOSED SUSPENSION, THE PARTICIPANT
SHOULD ADDRESS THE FACTS OR CONDUCT CHARGES CONTAINED IN THE
NOTICE AND STATE HOW HE DOES OR WILL ACHIEVE COMPLIANCE.
1 HOWEVER, IN THE CASE OF WILLFULNESS OR WHERE PUBLIC HEALTH
INTERESTS OR SAFETY ARE CONCERNED, THE SUSPENSION MAY BE
EFFECTIVE IMMEDIATELY.
ANY OTHER ACTION COMMENCED BY CUSTOMS FOR MISCONDUCT
MAY BE APPEALED IN WRITING THROUGH EXISTING PROCEDURES OR,
IF NONE EXISTS, TO THE HEADQUARTERS REMOTE TEAM WITHIN
TWENTY (20) DAYS OF THE ACTION.
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; AND
. 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; AND
. OTHER ITEMS IDENTIFIED BY THE PARTICIPANT GROUP.

DATED: DECEMBER 1, 1998
ASSISTANT COMMISSIONER
OFFICE OF FIELD OPERATIONS
ROBERT S. TROTTER