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Notice2022-09966

Document Imaging System (DIS) Pilot for Used Self-Propelled Vehicles Export Document Submission

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Published

May 10, 2022

Issuing agencies

Homeland Security DepartmentU.S. Customs and Border Protection

Abstract

This document announces that U.S. Customs and Border Protection (CBP) plans to conduct a pilot to promote paperless processing of export documentation for used self-propelled vehicles (USPVs). Generally, USPVs include any vehicle that can be driven on land but not rail. The CBP regulations require a person attempting to export a USPV to present original vehicle ownership documentation to CBP at the port of exportation. In an effort to expedite and modernize the document submission and review process, CBP will be operating a voluntary pilot in which participants will submit the required vehicle ownership documentation to CBP electronically via the Document Imaging System (DIS). This voluntary pilot will evaluate the feasibility of using the DIS for the purpose of obtaining and reviewing vehicle ownership documentation for USPVs. This notice includes a description of the pilot, the eligibility requirements for participation, and invites public comment on any aspect of the pilot.

Full Text

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<title>Federal Register, Volume 87 Issue 90 (Tuesday, May 10, 2022)</title>
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[Federal Register Volume 87, Number 90 (Tuesday, May 10, 2022)]
[Notices]
[Pages 28022-28025]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-09966]

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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs & Border Protection

Document Imaging System (DIS) Pilot for Used Self-Propelled
Vehicles Export Document Submission

AGENCY: U.S. Customs and Border Protection, DHS.

ACTION: General notice.

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SUMMARY: This document announces that U.S. Customs and Border
Protection (CBP) plans to conduct a pilot to promote paperless
processing of export documentation for used self-propelled vehicles
(USPVs). Generally, USPVs include any vehicle that can be driven on
land but not rail. The CBP regulations require a person attempting to
export a USPV to present original vehicle ownership documentation to
CBP at the port of exportation. In an effort to expedite and modernize
the document submission and review process, CBP will be operating a
voluntary pilot in which participants will submit the required vehicle
ownership documentation to CBP electronically via the Document Imaging
System (DIS). This voluntary pilot will evaluate the feasibility of
using the DIS for the purpose of obtaining and reviewing vehicle
ownership documentation for USPVs. This notice includes a description
of the pilot, the eligibility requirements for participation, and
invites public comment on any aspect of the pilot.

DATES: This voluntary pilot will begin no earlier than June 9, 2022 and
will run for approximately two years. The pilot will apply to the
export of all USPVs regardless of the mode of transportation.
Implementation of the pilot for each mode of transportation and/or port
participation will be staggered and will be announced to the public
through the Cargo Systems Messaging Service (CSMS).\1\ The CSMS message
will include the start date for accepting ownership documentation via
the DIS. Comments concerning this notice and all aspects of the
announced pilot may be submitted at any time during the pilot period.
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\1\ Archived public CSMS messages can be accessed at: <a href="https://www.cbp.gov/trade/automated/cargo-systems-messaging-service">https://www.cbp.gov/trade/automated/cargo-systems-messaging-service</a>.

ADDRESSES: Interested parties should contact their local CBP vehicle
export processing office and express their interest and intent to
participate in the DIS pilot. Written comments concerning the program,
policy, and technical issues may be submitted at
_____________________________________-
<a href="/cdn-cgi/l/email-protection#712402141527141918121d1435382225342225311213015f1519025f161e07">[email&#160;protected]</a>.

FOR FURTHER INFORMATION CONTACT: Stephan Keating, Cargo and Conveyance
Security (CCS), Office of Field Operations (OFO), U.S. Customs and
Border Protection, at 202-344-2847 or via email at
<a href="/cdn-cgi/l/email-protection#4c1f38293c242d2262086207292d3825222b0c2f2e3c6228243f622b233a">[email&#160;protected]</a> and David Garcia, Cargo and Conveyance
Security (CCS), OFO, CBP at <a href="/cdn-cgi/l/email-protection#b2f6d3c4dbd69ce7e1f1e19cf5d3c0d1dbd3f2d1d0c29cd6dac19cd5ddc4">[email&#160;protected]</a> and 202-344-
3277.

SUPPLEMENTARY INFORMATION:

I. Background and Purpose of the Pilot

A. Current Requirements for Export of Used Self-Propelled Vehicles

In 1984, Congress enacted the Motor Vehicle Theft Enforcement Act,
Public Law 98-547, 98 Stat. 2754 codified at 19 U.S.C. 1627a (1984
Act), which makes it unlawful to import or export, or attempt to import
or export, any stolen self-propelled vehicle, vessel, or aircraft.
Pursuant to the 1984 Act, the Department of Homeland Security is
authorized to promulgate regulations for the export of used self-
propelled vehicles. The 1984 Act allows CBP to share relevant
information with such Federal, State, local, and foreign law
enforcement or governmental authorities, and with such organizations
engaged in theft prevention activities, as may be designated by the
Secretary.
In 1992, Congress imposed additional requirements on the export of
used vehicles, with the enactment of the Anti Car Theft Act, Public Law
102-519, 106 Stat. 3400, codified at 19 U.S.C. 1646b--1646c (1992 Act).
The 1992 Act requires all persons or entities exporting used
automobiles, by air or vessel, including automobiles exported for
personal use, to provide CBP with certain information including the
Vehicle Identification Number (VIN) and proof of ownership of the
vehicle at least 72 hours prior to exportation. The 1992 Act authorizes
the Commissioner of CBP to establish risk-based targeting criteria for
automobiles being exported, and to check the VIN of targeted
automobiles against the information in the National Crime Information
Center (NCIC) to determine whether the vehicle has been reported
stolen. See 19 U.S.C. 1646c.
The implementing regulations for the above statutes are set forth
in part 192 of title 19 of the Code of Federal Regulations (19 CFR part
192). Among other things, part 192 includes regulations pertaining to
procedures for the lawful exportation of USPVs. In general, a self-
propelled vehicle is any vehicle that can be driven on land but not on
rail. Specifically, 19 CFR 192.1 defines self-propelled vehicle as any
automobile, truck, tractor, bus, motorcycle, motor home, self-propelled

[[Page 28023]]

agricultural machinery, self-propelled construction equipment, self-
propelled special use equipment, and any other self-propelled vehicle
used or designed for running on land but not on rail. Section 192.1
defines used as any self-propelled vehicle the equitable or legal title
to which has been transferred by a manufacturer, distributor, or dealer
to an ultimate purchaser. Finally, section 192.1 defines export as the
transportation of merchandise out of the U.S. for the purpose of being
entered into the commerce of a foreign country.
19 CFR 192.2 requires that in the case of a vehicle being exported
by vessel or aircraft, both the required documentation describing the
vehicle and the vehicle must be presented to CBP at least 72 hours
prior to export, and in the case of a vehicle being exported at a land
border crossing (by rail, highway, or under its own power), the
required documentation must be submitted at least 72 hours prior to
export, and the vehicle must be presented at the time of export. The
required documentation includes the VIN or, if the vehicle does not
have a VIN, the product information number (PIN). Section 192.2(b)
specifies the type of documents that must be submitted in different
circumstances. Exportation of a vehicle is permitted only upon
compliance with these requirements unless, as per section 192.2(a), the
vehicle was entered into the United States under an in-bond procedure,
or under a carnet or Temporary Importation Bond (TIB). Such vehicles
are exempt from these requirements.

B. Authorization for the Pilot

The test described in this notice is authorized pursuant to 19 CFR
101.9(a), which grants the Commissioner of CBP the authority to impose
requirements different from those specified in CBP regulations for
purposes of conducting a test program or procedure designed to evaluate
the effectiveness of new technology or operational procedures regarding
the processing of passengers, vessels, or merchandise.

C. Purpose of Pilot

CBP is implementing this voluntary Document Imaging System (DIS)
pilot in order to expedite and modernize the document submission and
review process for the export of used self-propelled vehicles.
During Fiscal Years 2018-2020, there was an annual average of 1.4
million, used self-propelled vehicles exported from the United States.
Under the current regulatory export procedures, the person who is
attempting to export a used self-propelled vehicle must present to CBP
both the vehicle and specified paper documents. This paper process is a
drain on limited CBP staffing resources at ports with significant
traffic because it requires CBP to devote numerous hours to review
vehicle export paperwork.
The pilot will allow CBP to test the mechanisms through which the
required documentation may be submitted electronically, as a
preliminary step towards moving to a more automated and efficient
export reporting system for export of used self-propelled vehicles.
Having the required documentation available electronically will enable
CBP to institute better risk-based targeting of exports. This will be
accomplished by making electronic document and information submission
the primary means for meeting export reporting requirements and
reserving field inspection of vehicles and examination of original
ownership documentation only for cases where targeting and risk
assessment have identified a need for additional scrutiny. The receipt
of the electronic ownership documentation will also improve CBP's
ability to target and identify high-risk vehicle exports pre-departure
while facilitating the process for legitimate exportation through a
more streamlined and efficient port procedure. Considering the high
volume of vehicle exports, it is expected that the electronic
submission of the required documentation will have a significant impact
on the speed and efficiency of vehicle export processing. The pilot
will allow CBP to assess the effectiveness of these procedures and will
allow the agency to test the functionality of the systems required for
electronic submission. The results of the pilot will help CBP determine
whether to eventually require through rulemaking the electronic
submission of vehicle ownership documentation using the DIS.

II. Description of Pilot

In this voluntary pilot, participants will submit the required
ownership documentation as set forth in 19 CFR part 192 through the DIS
in ACE, using either the Electronic Data Interchange (EDI) via an
Approved Broker Interface (ABI), or via email (at <a href="/cdn-cgi/l/email-protection#8eeae1edfdceedecfea0eae6fda0e9e1f8">[email&#160;protected]</a>).
Participants will be required to submit the documentation in accordance
with existing regulatory timeframes depending on the mode of export.\2\
Participation in the pilot will not alter the requirements for
presentation of the vehicle to CBP. See 19 CFR 192.2(c), (d).
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\2\ For export by ocean or air, participants must submit the
documents at least 72 hours prior to export, but only after the
vehicle is delivered to the port in preparation for departure from
the United States; for export by land or rail, participants must
submit documentation 72 hours prior to arriving at the border for
departure from the United States. 19 CFR 192.2(c).
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Under the pilot, the electronically submitted documents will be
linked to the Electronic Export Information (EEI) \3\ filing in the
Automated Export System (AES) via the Internal Transaction Number (ITN)
generated at the time of the EEI submission. Participants will be
required to transmit a valid ITN number to CBP with the DIS submission.
Participants will have to submit EEI prior to submitting the vehicle
documents to DIS. CBP will request original documentation and conduct a
physical examination of the vehicle when necessitated by the results of
targeting and risk assessment.
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\3\ The Electronic Export Information (EEI) is required pursuant
to the Census Foreign Trade Regulations (FTR). 15 CFR part 30,
subpart E. 19 CFR part 192 also sets forth CBP's requirements
pertaining to the Automated Export System (AES), implemented by FTR.
The AES is the electronic system of record for collecting EEI from
persons exporting goods from the United States to foreign countries.
The EEI for all used self-propelled vehicles must be filed via AES
regardless of value or country of destination 72 hours prior to
export. 15 CFR 30.2(a)(1)(iv)(H), (b)(5).
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The sections below describe the pilot, including specific
instructions on how to participate in the pilot (section D), in more
detail.

A. Procedures for the Export of Used Self-Propelled Vehicles Under the
Pilot

As discussed in section I.A., 19 CFR 192.2 requires a person
attempting to export a used self-propelled vehicle to present the
vehicle and certain required documents at the port of exportation. The
documentary requirements vary by type of vehicle,\4\ and the timeframes
for presenting the documents and vehicle vary by manner of export.\5\
The DIS pilot changes only the manner in which the required documents
are submitted to CBP. For pilot participants, CBP will waive the
requirement in 19 CFR 192.2 to present original physical copies of the
documents and require the documents to be submitted electronically
using the DIS (EDI or email) instead. However, CBP will retain the
right to request original documents on an as-needed basis. All other
requirements of 19 CFR part 192, including the requirement to present
the vehicle, will remain unchanged.\6\
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\4\ For example, U.S. titled vehicles, vehicles with title that
evidences third-party ownership/claims, foreign titled vehicles,
etc. See 19 CFR 192.2(b).
\5\ See 19 CFR 192.2(c).
\6\ The pilot does not change the specific documents required
for any particular type of vehicle, nor does it change the
timeframes by which the documentation must be submitted. The pilot
also does not change the requirement to present the vehicle to CBP,
as set forth in 19 CFR 192.2(c) and (d). 19 CFR part 192 exempts
certain categories of vehicles from the EEI filing requirement of
the Census Foreign Trade Regulations (15 CFR part 30, subpart E).
The EEI filing requirements remain unchanged under this pilot.

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[[Page 28024]]

Pilot participants agree to provide via electronic means, and in
accordance with timeframes that apply by mode of transportation, the
documentation required under 19 CFR 192.2. Pilot participants agree to
submit the documentation required for the export of used self-propelled
vehicles via the DIS, using either the EDI via an approved ABI or by
submitting the documents in PDF format to the email address
<a href="/cdn-cgi/l/email-protection#f5919a9686b5969785db919d86db929a83">[email&#160;protected]</a>. Participants will receive an automated response in
the format in which the required documents were submitted, EDI or
email, confirming that the document submission was received.\7\ The
participants will be able to use the automated response together with
the AES-generated ITN to show that they complied with CBP's reporting
requirements. The documentation submitted via the DIS will be used by
CBP to review and process vehicles pending export to ensure compliance
with U.S. laws and regulations. CBP reserves the right to request
original (paper) documentation at any time. Consequently, pilot
participants must continue to have access to the documentation in its
original form for the entire time from submission to clearance by CBP,
in the same manner as required by 19 CFR part 192.
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\7\ This is different from the current process whereby CBP ports
of export stamp the original documentation provided by the exporter
and the exporter then uses the stamped documentation as evidence
that CBP cleared the vehicle prior to departure from the United
States.
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For vehicles to be transported by ocean or air, the required
documents must be submitted at least 72 hours prior to export, and only
after the vehicle is delivered to the port in preparation for departure
from the United States. For vehicles to be transported by land or rail,
the documents must be submitted 72 hours prior to the vehicle's
arriving at the border for departure from the United States. These are
the same timeframes that apply under the current regulations, and CBP
anticipates that these timeframes will provide adequate time for CBP to
perform proper risk assessment, while minimizing disruption to the flow
of goods. Consistent with current standard operational procedures, the
inspections could potentially take place at any time prior to departure
from the United States.
Pilot participants agree to adhere to established operational
security protocols that correspond to their local CBP vehicle export
processing office. Pilot participants also agree to participate in any
teleconferences or meetings called by CBP, to ensure that any
challenges, or operational or technical issues regarding the pilot are
properly communicated and addressed.
Participation in the pilot does not alter participants' obligations
to comply with any other applicable statutory or regulatory
requirements. Participants will continue to be subject to applicable
penalties for non-compliance. In addition, submission of documentation
using the DIS under the pilot does not exempt the participant from any
CBP or other U.S. Government agency program requirements or any
statutory sanctions in the event that a violation of U.S. export
control laws occurs or prohibited articles are discovered with a
vehicle presented for export from the United States.

B. Duration and Scope of Pilot

Participants must be individually approved by CBP in order to
participate in the pilot, and the pilot may be limited to a single or
small number of ports until any operational, training, or technical
issues on the trade or government side are established and/or resolved.
The start date for the pilot will be no earlier than June 9, 2022.
Implementation of the pilot for each mode of transportation and/or
participating port will be staggered and will be announced to the
public through the CSMS. The CSMS message will include the start date
for accepting ownership documentation via the DIS. The pilot will run
for approximately two years from the start date.

C. Eligibility Requirements

Eligibility is limited to parties who are responsible for
submitting the documentation required by 19 CFR 192.2 as part of the
export transaction and who have access to the ITN for the AES commodity
filing. In addition, participants must agree to submit the required
documentation via the DIS, as described above.

D. Application Process and Acceptance

Parties interested in participating in this pilot should, as a
preliminary matter, submit a request to receive Export updates via the
CSMS. Requests may be made at <a href="https://www.cbp.gov/trade/automated/cargo-systems-messaging-service">https://www.cbp.gov/trade/automated/cargo-systems-messaging-service</a>. The CSMS will be used to provide pilot
participants with technical and operational updates and guidance
throughout the pilot, and may be used to announce technical, non-
substantive changes to the pilot. CBP will utilize the CSMS to announce
the implementation of the pilot for each mode of transportation and/or
participating port. Only once the pilot has been extended to their mode
of transportation and participating port, will an interested party be
able to participate in the pilot.
Once the pilot has been implemented for their mode of
transportation and port, interested parties should then contact their
local CBP vehicle export processing office and express their interest
and intent to participate in the DIS pilot. Detailed instructions for
participation in the pilot can be found in the DIS Instructional Guide
for the Exportation of Used Self-Propelled Vehicles located on the CBP
website, at <a href="https://www.cbp.gov/trade/basic-import-export/export-docs/motor-vehicle">https://www.cbp.gov/trade/basic-import-export/export-docs/motor-vehicle</a>. There is no specific application for participation in
the pilot. However, interested participants must communicate their
interest and intent to the relevant port before taking any other
action. The port will further direct potential pilot participants.
Prospective participants will be asked to submit the first submission
of ownership documents and contact their local CBP vehicle processing
office to verify that their first transmission of ownership documents
is successful, prior to being granted participation in the pilot. Once
this review and verification is complete, participants will be
permitted to participate fully in the pilot.
Participation in the pilot is open to all eligible parties that
have been approved to participate, subject to the discretion of the
Port Director at the port from which parties intend to export the
USPVs.

E. Technical Specifications

Ownership documents must be submitted via the DIS, either using the
EDI via an approved ABI or via email at <a href="/cdn-cgi/l/email-protection#caaea5a9b98aa9a8bae4aea2b9e4ada5bc">[email&#160;protected]</a>, in a PDF
format up to 10MB. Detailed instructions for participation in the pilot
can be found in a document named DIS Instructional Guide for the
Exportation of Used Self-Propelled Vehicles located on the CBP website,
at <a href="https://www.cbp.gov/trade/basic-import-export/export-docs/motor-vehicle">https://www.cbp.gov/trade/basic-import-export/export-docs/motor-vehicle</a>.

F. Costs to Pilot Participants

Participants are responsible for all costs incurred as a result of
their participation in the pilot.

[[Page 28025]]

G. Benefits to Pilot Participants

While the benefits to individual pilot participants may vary,
advantages to joining in the pilot include:
<bullet> Reducing the costs associated with paper processing;
<bullet> Expediting review and release of USPVs by CBP;
<bullet> Providing input into CBP's efforts to establish, test and
refine the interface between government and industry communication
systems in order to enable paper-free processing of USPV export
requirements;
<bullet> Facilitating corporate preparedness for possible future
mandatory implementation of electronic submission of documentation
using the DIS; and
<bullet> Facilitating the efficient processing of legitimate USPV
exports across all modes of transportation.

H. Evaluation of the Pilot

While the pilot is ongoing, CBP will evaluate the effectiveness of
using the DIS and will determine if any extensions or modifications are
needed. Technical modifications will be announced using the CSMS. Any
substantive changes to the pilot, including extensions, will be
announced in the Federal Register.
The results of the pilot will help CBP analyze and evaluate the
effectiveness of using the DIS or some other method to collect export
documentation for USPVs. When sufficient analysis and evaluation have
been conducted, CBP will decide whether to require electronic
submission of ownership documentation using the DIS or some other
method. Any changes to the regulations will be done through rulemaking.

I. Confidentiality

All data submitted and entered into ACE is subject to the Trade
Secrets Act (18 U.S.C. 1905) and is considered confidential, except to
the extent as otherwise provided by law. However, participation in this
or any ACE pilot is not confidential and upon a written Freedom of
Information Act (FOIA) request, the name(s) of an approved
participant(s) will be disclosed by CBP in accordance with 5 U.S.C.
552.

III. Privacy

CBP will ensure that all Privacy Act requirements and applicable
policies are adhered to during the implementation of this pilot.

IV. Paperwork Reduction Act

The Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3507(a))
requires that CBP consider the impact of paperwork and other
information collection burdens imposed on the public. An agency may not
conduct, and a person is not required to respond to, a collection of
information unless the collection of information displays a valid
control number assigned by OMB. The collection of information regarding
Exportation of Self-Propelled Vehicles was previously reviewed and
approved by OMB in accordance with the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3507) under OMB Control Number 1651-
0054. No new information is being collected under this pilot.
Therefore, no new information collection or update to the existing
information collection is required at this time.

V. Misconduct Under the Pilot

A pilot participant may be subject to civil and criminal penalties,
administrative sanctions, liquidated damages, or discontinuance from
participation in the pilot for any of the following:
(1) Failure to comply with the rules, procedures, or terms and
conditions of this pilot;
(2) Failure to exercise reasonable care in the execution of
participant obligations; or
(3) Failure to abide by the applicable laws and regulations that
have not been waived.
An intentional violation of an obligation under the pilot will
result in the immediate removal of the participant from the pilot, and
the violator may be subject to penalties or seizure of the vehicle(s).
Continuous technical violations will also result in the participant's
being removed from the pilot. Additionally, CBP has the right to
suspend or remove a pilot participant based on a determination that an
unacceptable compliance risk exists, or where public health interests
or safety so require.
If CBP finds that there is a basis to suspend or remove a
participant from the pilot, the pilot participant will be provided a
written notice informing the participant of immediate suspension or
removal from the program. The pilot participant will be offered the
opportunity to appeal the decision in writing. Any appeal must be
addressed to the Outbound Enforcement and Policy Branch Chief and
submitted via email to <a href="/cdn-cgi/l/email-protection#2a49485a5c4f424349464f4f525a45585e596a49485a044e4259044d455c">[email&#160;protected]</a> within 15 business
days of notification of suspension or removal from the program. The
appeal must address the facts or conduct charges contained in the
notice and state how the participant has or will achieve compliance.
CBP will notify the participant within 30 business days of receipt of
an appeal whether the appeal is granted. The participant will not be
permitted to participate in the pilot while an appeal is pending and
may not become active in the pilot again until CBP approves the
participant's reinstatement. If no timely appeal is received, the
notice becomes the final decision of the Agency as of the date that the
appeal period expires.

Pete Flores,
Executive Assistant Commissioner, Office of Field Operations, U.S.
Customs and Border Protection.
[FR Doc. 2022-09966 Filed 5-9-22; 8:45 am]
BILLING CODE 9111-14-P

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