Notice2023-03279
Section 321 Data Pilot: Modification of Data Elements, Expansion of Pilot To Include Additional Test Participants, and Extension of Pilot
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Published
February 16, 2023
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
This notice announces that U.S. Customs and Border Protection (CBP) is modifying the Section 321 Data Pilot by adding optional data elements that may be submitted by any participant. CBP is also expanding the Section 321 Data Pilot to accept applications for additional participants in this test from all parties that meet the eligibility requirements. This notice also announces that CBP is extending the Section 321 Data Pilot through August 2025.
Full Text
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<title>Federal Register, Volume 88 Issue 32 (Thursday, February 16, 2023)</title>
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[Federal Register Volume 88, Number 32 (Thursday, February 16, 2023)]
[Notices]
[Pages 10140-10143]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-03279]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Section 321 Data Pilot: Modification of Data Elements, Expansion
of Pilot To Include Additional Test Participants, and Extension of
Pilot
AGENCY: U.S. Customs and Border Protection; Department of Homeland
Security.
ACTION: General notice.
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SUMMARY: This notice announces that U.S. Customs and Border Protection
(CBP) is modifying the Section 321 Data Pilot by adding optional data
elements that may be submitted by any participant. CBP is also
expanding the Section 321 Data Pilot to accept applications for
additional participants in this test from all parties that meet the
eligibility requirements. This notice also announces that CBP is
extending the Section 321 Data Pilot through August 2025.
DATES: The voluntary pilot initially began on August 22, 2019, and will
run through August 2025. The modifications of the data elements and
expansion of the test to include additional participants set forth in
this document are effective as of the date of publication of this
notice in the Federal Register.
ADDRESSES: Prospective pilot participants should submit an email to
<a href="/cdn-cgi/l/email-protection#f194929e9c9c94839294b1929381df959982df969e87"><span class="__cf_email__" data-cfemail="0267616d6f6f67706167426160722c666a712c656d74">[email protected]</span></a>. In the subject line of your email please state,
``Application for Section 321 Data Pilot.'' For information on what to
include in the email, see section II.D (Application Process and
Acceptance) of the notice published in the Federal Register on July 23,
2019 (84 FR 35405).
FOR FURTHER INFORMATION CONTACT: Christopher Mabelitini, Director,
Intellectual Property Rights & E-Commerce Division at
<a href="/cdn-cgi/l/email-protection#8ce9efe3e1e1e9feefe9ccefeefca2e8e4ffa2ebe3fa"><span class="__cf_email__" data-cfemail="d6b3b5b9bbbbb3a4b5b396b5b4a6f8b2bea5f8b1b9a0">[email protected]</span></a> or 202-325-6915.
SUPPLEMENTARY INFORMATION:
I. Section 321 Data Pilot
Section 321(a)(2)(C) of the Tariff Act of 1930, as amended,
provides for an exemption from duty and taxes for shipments of
merchandise imported by one person on one day having an aggregate fair
retail value in the country of shipment of not more than $800. See 19
U.S.C. 1321(a)(2)(C). On July 23, 2019, U.S. Customs and Border
Protection (CBP) published a general notice in the Federal Register (84
FR 35405) (July 2019 notice) introducing a voluntary Section 321 Data
Pilot with a limit of nine participants. In accordance with the pilot,
participants agree to transmit electronically certain data in advance
of arrival for shipments potentially eligible for release under section
321 of the Tariff Act of 1930, as amended (Section 321 shipments). The
data pilot tests the feasibility of collecting certain advance data,
beyond those required by current regulations, and of collecting data
from non-traditional entities, such as online marketplaces, in order to
effectively identify and target high-risk shipments in the e-commerce
environment. With the expansion of the data pilot, CBP intends to
increase the number of trade participants who are transmitting
[[Page 10141]]
advance data elements on Section 321 de minimis shipments for trade
facilitation and risk management purposes, as well as add optional data
elements that may be submitted by any participant.
The purpose of this data pilot is to improve CBP's ability to
identify and target high-risk shipments in the e-commerce environment,
in addition to enhancing CBP's ability to facilitate trade and manage
risks of shipments potentially eligible for release under Section 321
more effectively and efficiently. The increase in the number of
participants transmitting data, as well as the addition of new optional
data elements, will provide CBP with additional data needed to measure
the success of the pilot.
The July 2019 notice provided a comprehensive description of the
data pilot, its purpose, eligibility requirements, the application
process for participation, and specifically stated that the data pilot
applied only to Section 321 shipments arriving by air, truck, or rail
(84 FR 35405). In December 2019, the pilot was expanded to include
Section 321 shipments arriving by ocean and international mail covered
in 19 CFR part 145 and extended through August 2021; CBP also provided
clarification with respect to the misconduct portion of the data pilot
(84 FR 67279) (December 2019 notice). On August 30, 2021, CBP extended
the pilot for an additional two years through August 2023 to continue
evaluation of the pilot and the risks associated with Section 321
shipments (86 FR 48435).
II. Modification to Section 321 Data Elements
This notice announces that CBP is modifying the Section 321 Data
Pilot to include optional data elements that may be submitted by any
participant. The modification will enable CBP to test further the
feasibility of collecting advance data from individuals or entities
that may possess the most relevant information relating to an e-
commerce shipment's supply chain. It will also enable CBP to better
direct resources used in inspecting and processing these shipments, so
that CBP can more accurately and efficiently target Section 321
shipments to assess potential associated security risks. By expanding
the pilot to include new optional data elements that can be submitted
by any participant, the results of the pilot will inform possible
future rulemakings, trade facilitation benefits, and other CBP
initiatives affecting Section 321 shipments. For these reasons, CBP is
modifying the Section 321 Data Pilot to include optional data elements.
Data Elements
Participants in the Section 321 Data Pilot must transmit certain
information for any Section 321 shipment destined for the United States
for which the participant has information (84 FR 35405). The required
data elements differ slightly depending on the entity transmitting the
data. In general, the required data relates to the entity initiating
the shipment (e.g., the entity causing the shipment to cross the
border, such as the seller, manufacturer, or shipper); the product in
the package; the listed marketplace price; and the final recipient
(e.g., the final entity to possess the shipment in the United States).
The data elements are as follows:
1. All participants. All participants, regardless of filer type,
must electronically transmit the following elements:
<bullet> Originator Code of the Participant (assigned by CBP)
<bullet> Participant Filer Type (e.g., carrier or online marketplace)
<bullet> One or more of the following:
[cir] Shipment Tracking Number
[cir] House Bill Number
>[cir] Master Bill Number
<bullet> Mode of Transportation (e.g., air, truck, ocean, or rail).
2. Participating carriers. In addition to the data elements listed
above in paragraph 1, participating carriers must also electronically
transmit the following data elements:
<bullet> Shipment Initiator Name and Address (e.g., the entity that
causes the movement of a shipment, which may be a seller, shipper, or
manufacturer, but not a foreign consolidator)
<bullet> Final Deliver to Party Name and Address (e.g., the final
entity to receive the shipment once it arrives in the United States,
which may be a final purchaser or a warehouse, but not a domestic
deconsolidator)
<bullet> Enhanced Product Description (e.g., a description of a product
shipped to the United States more detailed than the description on the
manifest, which should, if applicable, reflect the advertised retail
description of the product as listed on an online marketplace)
<bullet> Shipment Security Scan (e.g., verification that a foreign
security scan for the shipment has been completed, such as an x-ray
image or other security screening report)
<bullet> Known Carrier Customer Flag (e.g., an indicator that
identifies a shipper as a repeat customer that has consistently paid
all required fees and does not have any known trade violations).
3. Participating online marketplaces. In addition to the data
elements listed above in paragraph 1, participating online marketplaces
must electronically submit the following data elements:
<bullet> Seller Name and Address (e.g., an international or domestic
company that sells products on marketplaces and other websites), and,
if applicable, Shipment Initiator Name and Address
<bullet> Final Deliver to Party Name and Address
<bullet> Known Marketplace Seller Flag (e.g., an indicator provided by
a marketplace that identifies a seller as an entity vetted by the
marketplace and has no known trade violations)
<bullet> Marketplace Seller Account Number/Seller ID (e.g., the unique
identifier a marketplace assigns to sellers)
<bullet> Buyer Name and Address, if applicable (e.g., the purchaser of
a good from an online marketplace. This entity is not always the same
as the final deliver to party.)
<bullet> Product Picture (e.g., picture of the product presented on an
online marketplace), Link to Product Listing (e.g., an active and
direct link to the listing of a specific product on an online
marketplace), or Enhanced Product Description (as defined in paragraph
2)
<bullet> Listed Price on Marketplace (e.g., the retail price of a
product that a seller lists while advertising on an online marketplace.
For auction marketplaces, this price is the price of final sale.).
4. Optional Data Elements. In addition to the data elements listed
above, participants, regardless of filer type, may electronically
submit the following data elements:
<bullet> Harmonized Tariff Schedule of the United States (10-digit
HTSUS)
<bullet> Retail Price in Export Country
<bullet> Shipper Name
<bullet> Shipper Address
<bullet> Shipper Phone Number
<bullet> Shipper Email Address
<bullet> Consignee Name (e.g., the final deliver to party)
<bullet> Consignee Address
<bullet> Consignee Phone Number
<bullet> Consignee Email Address
<bullet> Buyer Name
<bullet> Buyer Address
<bullet> Buyer Phone Number
<bullet> Buyer Email Address
<bullet> Buyer Account Number
<bullet> Buyer Confirmation Number
<bullet> Shipment Initiator Phone Number
<bullet> Seller Phone Number
[[Page 10142]]
<bullet> Marketplace Name
<bullet> Marketplace website
<bullet> Carrier Name
<bullet> Known Carrier Customer Flag
<bullet> Merchandise/Product Weight
<bullet> Merchandise/Product Quantity
<bullet> Listed Price on Marketplace
<bullet> Manufacturer Identification Number (e.g., the MID)
<bullet> Manufacturer Name
<bullet> Manufacturer Address.
The optional data elements may be submitted as of the publication
of this notice in the Federal Register.
III. Expansion of Section 321 Applicant Participation
Effective Immediately, CBP is expanding the test to accept
applications for additional participants in this test from all parties
that meet the eligibility requirements. If selected for participation,
participants will be onboarded in the order in which their applications
are received in phases averaging three participants per month. CBP will
aim to onboard an average of three additional participants each month.
This expansion will allow CBP to continue evaluating the feasibility of
the 321 Data Pilot program and the risks associated with Section 321
shipments.
CBP seeks participation from stakeholders in the e-commerce
environment, including carriers, brokers, freight forwarders, and
online marketplaces. There are no restrictions regarding organizational
size, location, or commodity type. Additionally, online marketplaces do
not need to offer delivery logistic services to participate in the
pilot. However, participation is limited to those parties with
sufficient information technology infrastructure and support, as
described below. All prospective pilot participants must fulfill the
following eligibility requirements:
<bullet> Participants must use MQ connectivity capability, a
messaging solution component, to submit data electronically to CBP and
to receive messaging responses via an existing point-to-point
connection with CBP. Alternatively, participants may authorize a
carrier or broker that already participates in the pilot and has an
existing point-to-point connection with CBP to transmit the information
on their behalf.
<bullet> Participants establishing a new point-to-point connection
with CBP will need to sign an Interconnect Security Agreement (ISA) or
amend their existing ISA, if necessary, and adhere to security policies
defined in the DHS 4300a security guide.
<bullet> Participants must send the mandatory data elements
required for their filer type, as described above.
IV. Extension of the Section 321 Data Pilot Period
CBP will extend the pilot to continue evaluation of the 321 Data
Pilot program and the risks associated with section 321 shipments. The
pilot will run through August 2025.
V. Authority
This pilot is conducted pursuant to 19 CFR 101.9(a), which
authorizes the Commissioner to impose requirements different from those
specified in the CBP regulations for the 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.
VI. Privacy
CBP will ensure that all Privacy Act requirements and applicable
policies are adhered to during the implementation of this pilot.
VII. Paperwork Reduction Act
The collection of information gathered under this test has been
approved by the Office of Management and Budget (OMB) in accordance
with the requirements of the Paperwork Reduction Act (44 U.S.C. 3507)
and assigned OMB control number 1651-0142. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless it displays a valid control number assigned by OMB.
VIII. 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 Section 321 Data Pilot for any of the following:
(1) Failure to follow the rules, terms, and conditions of this
pilot;
(2) Failure to exercise due care in the execution of participant
obligations; or
(3) Failure to abide by applicable laws and regulations.
If the Director, Intellectual Property Rights and E-Commerce
Division, Office of Trade, finds that there is a basis for
discontinuance of pilot participation privileges, the pilot participant
will be provided a written notice which may be transmitted
electronically proposing the discontinuance with a description of the
facts or conduct warranting the action. The pilot participant will be
offered the opportunity to appeal the decision in writing within ten
(10) business days of receipt of the written notice. The appeal of this
determination must be submitted to the Executive Director, Trade Policy
and Programs, Office of Trade, by emailing <a href="/cdn-cgi/l/email-protection#6e0b0d0103030b1c0d0b2e0d0c1e400a061d40090118"><span class="__cf_email__" data-cfemail="a2c7c1cdcfcfc7d0c1c7e2c1c0d28cc6cad18cc5cdd4">[email protected]</span></a>.
The Executive Director, Trade Policy and Programs, Office of Trade,
will issue a decision in writing which may be transmitted
electronically on the proposed action within 30 business days after
receiving a timely filed appeal from the pilot participant. If no
timely appeal is received, the proposed notice becomes the final
decision of the Agency as of the date that the appeal period expires. A
proposed discontinuance of a pilot participant's privileges will not
take effect unless the appeal process under this paragraph has been
concluded with a written decision adverse to the pilot participant.
In cases of willfulness or those in which public health, interest,
or safety so require, the Director, Intellectual Property Rights and E-
Commerce Division, Office of Trade, may immediately discontinue the
pilot participant's privileges upon written notice which may be sent
electronically to the pilot participant. The notice will contain a
description of the facts or conduct warranting the immediate action.
The pilot participant will be offered the opportunity to appeal the
decision within ten (10) business days of receipt of the written notice
providing for immediate discontinuance. The appeal of this
determination must be submitted to the Executive Director, Trade Policy
and Programs, Office of Trade, by emailing <a href="/cdn-cgi/l/email-protection#6c090f030101091e0f092c0f0e1c4208041f420b031a"><span class="__cf_email__" data-cfemail="365355595b5b534455537655544618525e4518515940">[email protected]</span></a>.
The immediate discontinuance will remain in effect during the
appeal period. The Executive Director, Trade Policy and Programs,
Office of Trade, will issue a decision in writing on the discontinuance
within 15 business days after receiving a timely filed appeal from the
pilot participant. If no timely appeal is received, the notice becomes
the final decision of the Agency as of the date that the appeal period
expires.
IX. Applicability of Initial Test Notice
All other provisions found in the July 2019, December 2019, and
August 2021, notices remain applicable, subject to the expansion of
applicants provided herein. Furthermore, CBP reiterates that it is not
waiving any regulations for purposes of the pilot. All existing
regulations continue to apply to pilot participants.
X. Signing Authority
Troy Miller, Acting Commissioner, having reviewed and approved this
document, has delegated the authority
[[Page 10143]]
to electronically sign this document to Robert F. Altneu, who is the
Director of the Regulations and Disclosure Law Division for CBP, for
purposes of publication in the Federal Register.
Date: February 13, 2023.
Robert F. Altneu,
Director, Regulations & Disclosure, Law Division. Regulations &
Rulings, Office of Trade, U.S. Customs and Border Protection.
[FR Doc. 2023-03279 Filed 2-15-23; 8:45 am]
BILLING CODE 9111-14-P
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