Notice2022-05547
Enhanced Transparency and Access to Information for Debtors and Sureties in the Automated Commercial Environment
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Published
March 16, 2022
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
This document announces that U.S. Customs and Border Protection (CBP) is making three enhancements to CBP's debt management processes to increase transparency and access to information for debtors and sureties. One of the enhancements will support importers of record, licensed customs brokers, and other Automated Commercial Environment (ACE) account users who owe debts to CBP by enabling the electronic viewing of bill sanction status and protest details in the unpaid, open bill details report in ACE. The other two enhancements will facilitate compliance for sureties by providing electronic access to the monthly report listing open delinquent bills by importer name (i.e., the Formal Demand on Surety for Payment of Delinquent Amounts Due, also informally referred to as the 612 Report) in ACE (in lieu of CBP emailing this information to sureties) and improving the content and design of the mailed 612 Report.
Full Text
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<title>Federal Register, Volume 87 Issue 51 (Wednesday, March 16, 2022)</title>
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[Federal Register Volume 87, Number 51 (Wednesday, March 16, 2022)]
[Notices]
[Pages 14899-14902]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-05547]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Enhanced Transparency and Access to Information for Debtors and
Sureties in the Automated Commercial Environment
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: General notice.
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SUMMARY: This document announces that U.S. Customs and Border
Protection (CBP) is making three enhancements to CBP's debt management
processes to increase transparency and access to information for
debtors and sureties. One of the enhancements will support importers of
record, licensed customs brokers, and other Automated Commercial
Environment (ACE) account users who owe debts to CBP by enabling the
electronic viewing of bill sanction status and protest details in the
unpaid, open bill details report in ACE. The other two enhancements
will facilitate compliance for sureties by providing electronic access
to the
[[Page 14900]]
monthly report listing open delinquent bills by importer name (i.e.,
the Formal Demand on Surety for Payment of Delinquent Amounts Due, also
informally referred to as the 612 Report) in ACE (in lieu of CBP
emailing this information to sureties) and improving the content and
design of the mailed 612 Report.
DATES: On March 21, 2022, CBP will deploy updates to enable the
electronic viewing of bill sanction status and protest details in the
unpaid, open bill details report in ACE. Additionally, on May 1, 2022,
sureties may begin to view the electronic 612 Report in ACE (in lieu of
CBP emailing this information to sureties) and CBP will transition to
the updated mailed 612 Report.
ADDRESSES: Comments concerning this notice may be submitted at any time
via email to the ACE Collections Team, Investment Analysis Office,
Office of Finance, U.S. Customs and Border Protection, at
<a href="/cdn-cgi/l/email-protection#74353731371b18181117001d1b1a07341716045a101c075a131b02"><span class="__cf_email__" data-cfemail="6726242224080b0b0204130e0809142704051749030f1449000811">[email protected]</span></a>, with a subject line identifier reading
``ACE Collections Debt Management Release.''
FOR FURTHER INFORMATION CONTACT: Steven J. Grayson, Program Manager,
Investment Analysis Office, Office of Finance, U.S. Customs and Border
Protection, at (202) 579-4400, or <a href="/cdn-cgi/l/email-protection#f083849586959ede9ade97829189839f9eb0939280de949883de979f86"><span class="__cf_email__" data-cfemail="d1a2a5b4a7b4bfffbbffb6a3b0a8a2bebf91b2b3a1ffb5b9a2ffb6bea7">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
A. Ongoing Modernization of the Collections System at U.S. Customs and
Border Protection
U.S. Customs and Border Protection (CBP) is modernizing its
collections system, allowing CBP to eventually retire the Automated
Commercial System (ACS) and transfer all collections processes into the
Automated Commercial Environment (ACE). This modernization effort,
known as ACE Collections, includes the consolidation of the entire
collections system into the ACE framework, which will enable CBP to
utilize trade data from ACE modules, benefitting both the trade
community and CBP with more streamlined and better automated payment
processes. The new collections system in ACE will reduce costs for CBP,
create a common framework that aligns with other initiatives to reduce
manual collection processes, and provide additional flexibility to
allow for future technological enhancements. ACE Collections will also
provide the public with more streamlined and better automated payment
processes with CBP, including better visibility into data regarding
specific transactions.
ACE Collections supports the goals of the Customs Modernization Act
(Pub. L. 103-182, 107 Stat. 2057, 2170, December 8, 1993, Title VI of
the North American Free Trade Agreement Implementation Act), of
modernizing the business processes that are essential to securing U.S.
borders, speeding up the flow of legitimate shipments, and targeting
illicit goods that require scrutiny. ACE Collections also fulfills the
objectives of Executive Order 13659 (79 FR 10655, February 25, 2014),
to provide the trade community with an integrated CBP trade system that
facilitates trade, from entry of goods to receipt of duties, taxes, and
fees.
CBP is implementing ACE Collections through phased releases in ACE.
Release 1, which was deployed on September 7, 2019, dealt with
statements integration, the collections information repository (CIR)
framework, and ACH (automated clearinghouse) processing. See 84 FR
46749 and 84 FR 46678 (September 5, 2019), and 84 FR 49650 (September
23, 2019). Release 2 was deployed on February 5, 2021, and focused on
non-ACH electronic receivables and collections, for Fedwire and
<a href="http://Pay.gov">Pay.gov</a>, that included user fees, Harbor Maintenance Fee (HMF), and
Seized Assets and Case Tracking System (SEACATS) payments. All of the
changes in Release 2 were internal to CBP and did not affect the trade
community. Release 3 was deployed on May 1, 2021, and primarily
implemented technical changes to the liquidation process, and deferred
tax bills, that were internal to CBP. Release 3 also harmonized the
determination of the due date for deferred tax payments with the entry
summary date, streamlined the collections system, and provided
importers of record with more flexibility and access to data when
making deferred payments of internal revenue taxes owed on distilled
spirits, wines, and beer imported into the United States. See 86 FR
22696 (April 29, 2021). Release 4 was deployed on October 18, 2021, and
primarily implemented technical changes to the production and
management of the internal CBP processes for supplemental bills,
certain reimbursable bills, and non-reimbursable/miscellaneous bills
issued by CBP to the public. See 86 FR 56968 (October 13, 2021).
Release 4 also made available to importers of record, licensed customs
brokers, and other ACE account users, an option to electronically view
certain, unpaid, open bill details as reports in ACE Reports and
adopted a new, enhanced format for the CBP Bill Form. See id.
As explained more fully below, Release 5 will be deployed on March
21, 2022, with delayed implementation for the enhancements concerning
the Formal Demand on Surety for Payment of Delinquent Amounts Due (also
informally referred to as the 612 Report) until May 1, 2022. Release 5
focuses on debt management processes, and it includes mainly internal,
technical changes to the production, tracking, and management of
overdue bills and delinquent accounts and the bonds associated with
them. Release 5 also includes enhancements that improve transparency
and access to information through ACE for importers of record, licensed
customs brokers, and other ACE account users who owe debts to CBP, as
well as for the sureties who guarantee the bonds to secure the payment
of the debts, if applicable. Additional releases for ACE Collections
will follow, and any further changes affecting the public will be
announced by notice in the Federal Register, as needed.
B. Overview of CBP's Debt Management Processes Affected by Release 5 of
ACE Collections
CBP is authorized to collect duties, taxes, and fees from customs
activities. See generally 19 U.S.C. 58a, 58b, 58b-1, 58c, 1505; 26
U.S.C. 4461. The regulations found in part 24 of title 19 of the Code
of Federal Regulations (CFR) address the financial and accounting
procedures for when CBP collects the duties, taxes, fees, interest, and
other applicable charges from the public due to customs activities. See
generally 19 CFR 24.1 through 24.36. Members of the public are informed
of existing debts to CBP through the physical mailing of the CBP Bill
Form, the data elements of which are also available for electronic
viewing in ACE Reports.
CBP is authorized to require such bonds or other security as deemed
necessary for the protection of the revenue or to assure compliance
with any provision of law, regulation, or instruction. See 19 U.S.C.
1623. The regulations concerning such bonds are set forth generally in
part 113 of title 19 of the CFR, which addresses bond approval and
execution, bond conditions, general and special bond requirements, etc.
Bonds are required for a large percentage of the activities for which
CBP produces bills. See 19 CFR 113.61 through 113.75. For example, CBP
requires bonds for the importation of merchandise (19 CFR 113.62),
accelerated payment of drawback
[[Page 14901]]
refunds (19 CFR 113.65), and operation of a foreign trade zone (19 CFR
113.73).\1\
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\1\ In certain circumstances, bond requirements can be waived.
See, e.g., 19 CFR 10.31(f), 10.101(d), 142.4(c).
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CBP recognizes bonds and the parties to those bonds, who are the
principals and sureties, through the filing of a CBP Bond (CBP Form
301) and its addendums.\2\ Bond information may be filed
electronically, pursuant to 19 U.S.C. 1623(b), via any CBP authorized
electronic data interchange (EDI) system. CBP currently accepts the
electronic filing of bonds through the eBond test program, 79 FR 70881
(Nov. 28, 2014) and 80 FR 899 (Jan. 7, 2015), which was most recently
extended in a Federal Register notice, 83 FR 12403, on March 21,
2018.\3\ When a debtor/bond principal fails to pay a debt owed to CBP
that is secured by a bond, CBP may seek to collect from the surety (and
any other co-sureties or liable parties) under the bond. See, e.g., 19
CFR 113.3 and 144.2. Additionally, the bond principal(s) and the
surety(ies) are jointly and severally liable to CBP, as set forth in
the bond conditions. See 19 CFR part 113, subpart G.
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\2\ A copy of CBP Form 301 and its addendums may be viewed
online at <a href="https://www.cbp.gov/trade/priority-issues/revenue/bonds">https://www.cbp.gov/trade/priority-issues/revenue/bonds</a>.
\3\ Only a surety or a surety agent may submit an eBond, and
additional information about the eBond test program and how to
participate may be found online at <a href="https://www.cbp.gov/trade/priority-issues/revenue/bonds/ebond">https://www.cbp.gov/trade/priority-issues/revenue/bonds/ebond</a>.
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CBP's debt management processes begin when a debt becomes
delinquent, and then involves incrementally escalating consequences
when a debtor/bond principal does not make full payment. Generally, a
debtor/bond principal has 30 days to make payment after the ``bill
date'' (also known as the ``date of issuance of the bill''), appearing
on the CBP Bill Form, before the bill ``due date'' (also known as the
``late payment date''). 19 CFR 24.3(e). On the 31st day after the bill
date, the bill is considered delinquent, and interest will accrue in
30-day increments. 19 U.S.C. 1505(d); 19 CFR 24.3a. Thirty (30) days
after the bill due date (60 days after the bill date), CBP will list
the bill for the first time on the Formal Demand on Surety for Payment
of Delinquent Amounts Due (also informally referred to as the 612
Report, which is a monthly report listing open delinquent bills by
importer name) to the sureties (and any co-sureties) recognized on the
bond that secures the delinquent debt. 19 CFR 24.3a(d)(2)(i). The
elements that normally appear in the 612 Report are prescribed in 19
CFR 24.3a(d)(2).
Generally, CBP will mail the debtor/bond principal a dunning letter
if the debt remains unpaid for 120 days after the bill date (90 days
after the bill due date). The dunning letter warns of further
consequences if the bill remains unpaid, such as the imposition of
national sanction, informs about protest rights, and provides the
recipient with another copy of the details of outstanding debts owed,
for which a dunning letter has not been sent before.
Generally, if a debt continues to remain unpaid by the debtor/bond
principal, CBP will email the sureties on the applicable bond a surety
demand follow-up letter that seeks payment of all overdue debt secured
by a bond. In addition, the debtor/bond principal may be subject to
additional consequences, such as a requirement to file the entry
summary with payment of estimated duties, taxes, and fees attached
before CBP will release new entries (informally referred to as importer
sanction or national sanction).\4\ See, e.g., 19 CFR 142.13, 142.14,
142.26. Ultimately, CBP may take further actions against the surety
and/or the debtor/bond principal in an effort to collect the unpaid
debt. It should be noted that, under certain circumstances, the debtor/
bond principal and/or surety may file an administrative protest of
certain decisions by CBP, including the issuance of and basis for
certain bills. See 19 U.S.C. 1514, 1515. CBP's regulations governing
administrative protests may be found at 19 CFR part 174. The timely
filing of an administrative protest may alter CBP's debt management
approach that is generally described in the preceding paragraphs.\5\
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\4\ Additional information on the potential consequences for the
debtor/bond principal may be found online at <a href="https://www.cbp.gov/trade/priority-issues/revenue/bill-payments/importer-sanctions">https://www.cbp.gov/trade/priority-issues/revenue/bill-payments/importer-sanctions</a>.
\5\ Generally, within 180 days of liquidation or other
protestable decision made by CBP, the surety or debtor/bond
principal may file a protest against that decision. Sureties may
also file a protest within 180 days of the date of mailing of the
first 612 Report concerning the specific bill or unsatisfied legal
claim secured by the surety bond. An administrative protest must be
made on CBP Form 19 and may be filed in paper or electronically in
ACE. Under certain circumstances, the protesting party may seek
further review of a protest. Following the filing of a protest, CBP
will review and respond. See subpart C of 19 CFR 174.
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Altogether, CBP's debt management processes often entail numerous
mailings and deadlines for CBP and the trading public. CBP has thus
developed new tools to automate, streamline, and simplify the processes
for debt collection and protest tracking as part of Release 5. The
resulting benefits to the public that are announced in this document
will be deployed and implemented on March 21, 2022, with delayed
implementation for the enhancements concerning the 612 Report until May
1, 2022.
II. Enhancements to the Debt Management Processes
Additionally, CBP is announcing three enhancements to the debt
management processes to increase transparency and access to information
for the public as part of Release 5. One of the enhancements will
support importers of record, licensed customs brokers, and other ACE
account users who owe debts to CBP by enabling the electronic viewing
of whether a bill has caused consequences under 19 CFR 142.13, 142.14,
and 142.26 (informally referred to as bill sanction status or sanction
status) and protest details in the unpaid, open bill details report in
ACE. The other two enhancements will facilitate compliance for sureties
by providing electronic access to the 612 Report in ACE (in lieu of CBP
emailing this information to sureties) and improving the content and
design of the 612 Report.
A. Supplementation of Unpaid, Open Bill Details in ACE Reports To
Enable Electronic Viewing of Sanction Status and Protest Details for
Importers of Record, Licensed Customs Brokers, and Other ACE Account
Users Who Owe Debts to CBP
CBP sends physical bills on the CBP Bill Form \6\ via mail to
officially notify individuals and entities of amounts owed for duties,
taxes, fees, and other charges. Upon the deployment of Release 4 on
October 18, 2021, ACE account users were able to electronically view
the data elements appearing on the CBP Bill Form in ACE Reports for
certain categories of unpaid, open bills. 86 FR 56968 (October 13,
2021). The unpaid, open bill details report in ACE Reports provides an
ACE account user with a consolidated, electronic report to track its
open bills for which payment is owed to CBP. As part of Release 5, CBP
is supplementing the unpaid, open bill details report in ACE Reports
with new information applicable to sanction status and protest details
for each bill appearing on the report.
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\6\ As CBP advised in the Federal Register notice that announced
Release 4, the CBP Bill Form for physical bills will remain the
primary source of legal notice of monies owed due to customs
activity, as required by 19 CFR 24.3(a).
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Specifically, the new report information includes five data
elements. The first data element is an indicator as to whether the
unpaid, open bill has put the account holder on national sanction. The
other four data elements are details related to administrative protests
filed pursuant to 19 CFR part 174. If an
[[Page 14902]]
administrative protest is associated with an open, unpaid bill, then
the following data elements will be included in the report: The protest
number, the date of filing of the protest, the processing status of the
protest, and the date of CBP's decision on the protest (if applicable).
All of the new data elements will be included in additional columns
added to the unpaid, open bill details report in ACE Reports and will
be updated within one business day after the initial processing of
sanction status and/or the relevant administrative protest information.
It is important to note that any mailed or electronically communicated
information provided by CBP regarding the sanction status and protest
details may supersede the information appearing in ACE Reports.
Only members of the public who have an ACE Portal account can view
their unpaid, open bill details report in ACE Reports, which will
include the new information applicable to sanction status and protest
details as of March 21, 2022. CBP encourages affected members of the
public (including, but not limited to, importers of record and licensed
customs brokers) who do not already have an ACE Portal account to apply
for access to be able to view the necessary data to make timely bill
payments.\7\ CBP will provide any needed support for setting up ACE
Portal accounts. The public may access the ACE Reports application
through the ACE Secure Data Portal at <a href="https://ace.cbp.dhs.gov">https://ace.cbp.dhs.gov</a>.\8\
Within ACE Reports, ACE account users may navigate to and access their
unpaid, open bill details reports in the Workspace Module.\9\
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\7\ The step-by-step instructions to apply for an ACE Portal
account are available online at <a href="https://www.cbp.gov/trade/automated/getting-started/portal-applying">https://www.cbp.gov/trade/automated/getting-started/portal-applying</a>.
\8\ For more information about accessing, navigating, and
personalizing ACE Reports, please review the ACE Reports Trainings
online at <a href="https://www.cbp.gov/trade/ace/training-and-reference-guides">https://www.cbp.gov/trade/ace/training-and-reference-guides</a>.
\9\ The Workspace Module is a window in ACE Reports that
provides ACE account users access to their standard reports
categorized by subject area (such as Cargo Release, Entry Summary,
Manifest, etc.) and includes a navigation list (a folder structure
of standard reports) and a viewer that displays the report selected.
For additional information about the Workspace Module, please
consult the specific ACE Report training at <a href="https://www.cbp.gov/trade/ace/training-and-reference-guides">https://www.cbp.gov/trade/ace/training-and-reference-guides</a> or the quick reference card
at <a href="https://www.cbp.gov/document/guidance/ace-reports-qrc-navigating-workspace-module">https://www.cbp.gov/document/guidance/ace-reports-qrc-navigating-workspace-module</a>.
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B. Benefits for Sureties
1. Availability of an Option for Sureties to Electronically View 612
Reports in ACE
Currently, CBP mails to sureties the 612 Reports, which are a
monthly listing of open delinquent bills by importer name.\10\ The 612
Reports constitute the Formal Demand on Surety for Payment of
Delinquent Amounts Due, as required by 19 CFR 24.3a(d)(2). Each 612
Report contains certain information, such as the bill number and
principal amount due, to allow sureties to identify and track their
obligations. Id. In addition to mailing 612 Reports, CBP makes
available to sureties the ability to request and receive via email a
downloadable copy of the raw data underlying the most recent 612 Report
sent to them by mail.
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\10\ A new bill entry is added to a 612 Report when a bill owed
to CBP has not been paid and is more than 30 days past due
(approximately 60 days after the initial bill date). CBP generates
and mails the 612 Report to the surety at the beginning of every
month, and each bill listed will remain on the 612 Report until that
bill is paid or otherwise closed. 19 CFR 24.3a(d)(2)(i).
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As part of Release 5, CBP will make available to sureties an option
to electronically view 612 Reports in ACE (in lieu of CBP emailing this
information to sureties).\11\ This new option will, inter alia, reduce
the amount of time sureties spend manually identifying and tracking
their obligations to CBP, and will allow sureties to access their
report at any time of the month, eliminating the constraint of having
access to the data the first day it is generated. Moreover, this new
option will significantly reduce the current burden on CBP associated
with the emailing of the 612 Reports to the respective sureties. The
default data presented in the electronic 612 Report will be for the
most recent month's mailed 612 Report. Sureties will also be able to
view data from, at a minimum, three previous monthly electronic 612
Reports, but such data will not remain available indefinitely in ACE.
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\11\ CBP will discontinue the option for sureties to request,
through CBP's Office of Finance, Revenue Division, the regular
emailing of 612 Report data packets, as of May 1, 2022. The
downloadable data packets are a function of ACS, which will become
obsolete, and the existence of the option to electronically view 612
Reports supersedes the emailing of data packets (as the same
information will be downloadable from ACE).
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The electronic 612 Reports will only update on, approximately, the
first day of every month to ensure the data appearing in the electronic
612 Reports will match the data appearing in the mailed 612 Reports.
The data elements appearing in the electronic 612 Reports will be the
same as the data elements appearing in the mailed 612 Reports,
including the new element described below.
It is important to note that CBP will continue its current
processes for mailing the 612 Reports, which remain the official notice
to sureties as required by 19 CFR 24.3a(d). Information and data that
appear on the mailed 612 Report will supersede the data elements that
appear in the electronic 612 Reports, and sureties should continue to
consult the mailed 612 Reports to determine the extent of their legal
obligations. Moreover, only sureties who have an ACE Portal account
will be able to view their electronic 612 Reports that will be
available in ACE Reports beginning on May 1, 2022. CBP encourages
sureties who do not already have an ACE Portal account to apply for
access to be able to electronically view their 612 Reports.\12\
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\12\ CBP will provide any needed support for setting up ACE
Portal accounts. See supra footnotes 7-9 for more information about
creating ACE Portal accounts, navigating ACE Reports, and accessing
612 Reports in the Workspace Module.
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2. Minor Modifications to the Information in and Appearance of the
Mailed 612 Reports
As part of Release 5, there will be minor modifications to the
information in and appearance of the mailed 612 Report. The mailed 612
Report will continue to have the same structure and provide the same
information as it does now, but CBP will add a new data element and
column, the ``Bill Version #'', which is intended to help sureties
track whether a certain bill's information is current.\13\ In addition,
the mailed 612 Report will no longer be printed on paper with a green
bar. Instead, as of May 1, 2022, the mailed 612 Report will be printed
on more common legal landscape paper.
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\13\ CBP assigns bills a specific number that corresponds to a
bill as it existed at a specific point in time. Bills change due to
recalculation of interest, partial payment, etc. and CBP updates the
bill version number when a bill changes. For 612 Reports, the ``Bill
Version #'' will correspond to the bill as it existed at the time
that the mailed 612 Report was generated.
Dated: March 9, 2022.
Jeffrey Caine,
Chief Financial Officer, U.S. Customs and Border Protection.
[FR Doc. 2022-05547 Filed 3-15-22; 8:45 am]
BILLING CODE 9111-14-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.