Subject: FR Doc E8-29801
From: "Saved by Windows Internet Explorer 8"
Date: Mon, 31 Dec 2012 10:31:10 -0500

[Federal Register: December 19, 2008 (Volume 73, Number 245)]
[Notices]
[Page 77759-77764]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19de08-128]

-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Office of the Secretary

[Docket No. DHS-2008-0150]

Privacy Act of 1974; U.S. Customs and Border Protection--015
Automated Commercial System, System of Records

AGENCY: Privacy Office; DHS.

ACTION: Notice of Privacy Act system of records.

-----------------------------------------------------------------------

SUMMARY: In accordance with the Privacy Act of 1974 and as part of the
Department of Homeland Security's ongoing effort to review and update
legacy system of record notices, the Department of Homeland Security
proposes to update and reissue the following legacy record system,
Treasury/CS.278 Automated

[[Page 77760]]

Commercial System (October 18, 2001) as a Department of Homeland
Security system of records notice titled, U.S. Customs and Border
Protection Automated Commercial System. The Customs and Border
Protection Automated Commercial System is a comprehensive system used
by Department of Homeland Security, U.S. Customs and Border Protection
to track, control, and process all commercial goods imported into the
United States. This legacy system will now also collect additional data
via its Automated Broker Interface and Vessel Automated Manifest
System. Categories of individuals, categories of records, and the
routine uses of this legacy system of records notice have been reviewed
and updated to better reflect the U.S. Customs and Border Protection--
015 Automated Commercial System record system. This reissued system
will be included in the Department of Homeland Security's inventory of
record systems.

DATES: The established system of records will be effective January 20,
2009. Written comments must be submitted on or before January 20, 2009.

ADDRESSES: You may submit comments, identified by DHS-2008-0150 by one
of the following methods:
Federal e-Rulemaking Portal: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov.
Follow the instructions for submitting comments.
Fax: 1-866-466-5370.
Mail: Hugo Teufel III, Chief Privacy Officer, Privacy
Office, Department of Homeland Security, Washington, DC 20528.
Instructions: All submissions received must include the
agency name and docket number for this rulemaking. All comments
received will be posted without change to http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov,
including any personal information provided.
Docket: For access to the docket to read background
documents or comments received go to http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For general questions please contact:
Laurence E. Castelli (202-325-0280), Chief, Privacy Act Policy and
Procedures Branch, U.S. Customs and Border Protection, Office of
International Trade, Regulations & Rulings, Mint Annex, 799 Ninth
Street, NW., Washington, DC 20001-4501. For privacy issues please
contact: Hugo Teufel III (703-235-0780), Chief Privacy Officer, Privacy
Office, U.S. Department of Homeland Security, Washington, DC 20528.

SUPPLEMENTARY INFORMATION:

I. Background

The priority mission of U.S. Customs and Border Protection (CBP) is
to prevent terrorists and terrorist weapons from entering the country
while facilitating legitimate travel and trade. The Automated
Commercial System (ACS) is the comprehensive system used by U.S.
Customs and Border Protection to track, control, and process all
commercial goods imported into the United States. ACS is a
sophisticated and integrated large-scale business-oriented system which
employs multiple modules to perform discrete aspects of its
functionality, including receiving data transmissions from a variety of
parties involved in international commercial transactions and providing
CBP with the capability to track both the transport transactions and
the financial transactions associated with the movement of merchandise
through international commerce. Through the use of Electronic Data
Interchange (EDI), ACS facilitates merchandise processing,
significantly cuts costs, and reduces paperwork requirements for both
Customs and the importing community.
ACS also provides the following:

A. Cargo Selectivity

CBP uses the ACS Cargo Selectivity System to sort high risk cargo
from low risk cargo and to determine the type of examination required.
Cargo selectivity accepts data transmitted through ABI and compares it
against established criteria. CBP uses the Cargo Selectivity System, a
module of ACS, to process manifests and National In-bond entries in
order to identify the CBP inspection and examination status of specific
bills of lading for imported merchandise. Cargo Selectivity facilitates
more efficient and effective cargo processing by ensuring cargo that
requires additional screening receives it and that which is lower risk
does not.

B. Entry Summary Selectivity

The Entry Summary Selectivity system of ACS screens the review of
entry summary data. Using line item data transmitted through ABI, the
system matches national and local selectivity criteria against entry
summary data to assess risk by importer, tariff number, country of
origin, manufacturer, and value. The system captures paperless summary
activity, discrepant summary findings, and line item team assignment
data.

C. Border Cargo

The Border Cargo Selectivity system of ACS determines risk
assessment and examination requirements for high volume borders (i.e.,
ports of entry). The system uses the same screening process as the
Cargo Selectivity system. The Border Cargo Selectivity system will soon
be enhanced to allow ABI filers to transmit manifest information.

D. Quota

The ACS Quota system tracks quantity controls on imported
merchandise. It also tracks visas from other countries. (Visas
determine the amount of exports allowed for certain countries.) The
Quota system checks the quantities against the visas and transmits this
information to the country of origin. The ACS quota and visa controls
simplify reconciliation of imports and exports.

E. Paperless Entry

Paperless entry processing eliminates the need for ABI participants
to file a Customs Form 3461, Entry/Immediate Delivery, if certain
criteria are met and the merchandise does not require examination.
Carriers who participate in AMS will receive electronic notifications
when merchandise is available for release.

F. Automated Invoice Interface (AII)

AII allows filers to send electronic invoice information to
Customs. This information is transmitted to Customs using either ABI
record formats or the EDIFACT CUSDEC (Customs declaration). When
EDIFACT is used, the filer also transmits data that is normally on the
CF-3461 for cargo release, as well as the entry summary CF-7501,
invoice data, and other government agency data.

G. Drawback

Filers can submit a drawback claim to Customs on a diskette or
through ABI. This ensures that the data is quickly and accurately
recorded in ACS and results in faster claim processing and issuance of
the drawback payment. Immediate acceptance or rejection of data is
available.

H. Protest

The ABI electronic protest system allows ABI participants to file,
amend, and query the following types of actions:
Protests against decisions of the Customs Service under 19
U.S. C. 1514.
Petitions for refunds of Customs duties or corrections of
errors requiring reliquidation pursuant to 19 U.S.C. 1520(c) and (d).
Interventions in an importer's protest by an exporter or
producer of merchandise from a country that is a party to the North
American Free Trade

[[Page 77761]]

Agreement under Section 181.115 of the Customs Regulations.
Once filed, protests can be amended and additional arguments
submitted to:
Apply for further review (when not requested at time of
filing).
Assert additional claims or challenge an additional
decision.
Submit alternative claims and additional grounds or
arguments.
Request review of denial of further review.
Request denial of the protest be voided.
The protest, petition, or intervention can be transmitted remotely
from any location. Customs views and processes the protest on-line. An
automatic notification routine keeps the filer informed of any change
in status, including final disposition.

I. Remote Location Filing

Remote Location Filing (RLF) is a pilot program which allows an
approved participant to electronically file a formal or informal entry
of merchandise with Customs from a location within the United States
other than the port of arrival (POA) or the designated examination site
(DES). Such merchandise, upon clearance by CBP, may enter the commerce
of the United States.

J. National In-bond

The National In-bond system tracks cargo en route in the United
States. Using departure, arrival, and closure data, the In-bond system
tracks cargo from the point of unlading to the port of entry or
exportation. The In-bond system is incorporated within AMS. AMS retains
control over all sea in-bond movements (both conventional and
paperless) that are associated with automated bills of lading.

K. Paperless Master In-bond

The Paperless Master In-bond program controls the movement and
disposition of master in-bond (MIB) shipments from the carrier's
custody at the port of unlading to the same carrier's custody at the
port of destination. This program utilizes the data already available
in AMS, eliminating the need for paper documentation.
To help prevent terrorist weapons from being transported to the
United States, vessel carriers bringing cargo to the United States are
required to transmit certain information to Customs and Border
Protection (CBP) about the cargo they are transporting prior to lading
that cargo at foreign ports of entry. CBP is issuing an interim final
rule that requires both importers and carriers to submit additional
information pertaining to cargo to CBP before the cargo is brought into
the United States by vessel. This information must be submitted to CBP
by way of a CBP-approved electronic data interchange system. The
required information is necessary to improve CBP's ability to identify
high-risk shipments so as to prevent smuggling and ensure cargo safety
and security, as required by section 203 of the Security and
Accountability for Every (SAFE) Port Act of 2006 and section 343(a) of
the Trade Act of 2002, as amended by the Maritime Transportation
Security Act of 2002.
The proposed rule was known to the trade as both the ``Importer
Security Filing proposal'' and the ``10 + 2 proposal.'' The name ``10 +
2'' is shorthand for the number of advance data elements CBP was
proposing to collect. Carriers would be generally required to submit
two additional data elements--a vessel stow plan and container status
messages regarding certain events relating to containers loaded on
vessels destined to the United States--to the elements they are already
required to electronically transmit in advance (the ``2'' of ``10+2'');
and importers, as defined in the proposed regulations, would be
required to submit ten data elements--an Importer Security Filing
containing ten data elements (the ``10'' of ``10+2'').
ACS has two principal methods for electronic data interchange: The
Automated Broker Interface (ABI) and the Automated Manifest System
(AMS). Under the ``10+2'' program, importers, who submit the Importer
Security Filing (ISF), will use either ABI or Vessel AMS to provide
their information to CBP. ACS, upon receipt of the ISF, will transfer
the data to the Automated Targeting System (ATS) for screening and
targeting purposes. Once screened the ISF data will be returned with
embedded targeting links to ACS to be maintained in accordance with the
ACS stated retention policy.
Pursuant to the savings clause in the Homeland Security Act of
2002, Public Law 107-296, Section 1512, 116 Stat. 2310 (November 25,
2002), the Department of Homeland Security (DHS) and its components and
offices have relied on preexisting Privacy Act systems of records
notices for the maintenance of records that concern the tracking,
controlling, and processing of all commercial goods imported into the
United States.
This collection satisfies the requirements of Section 203 of the
Security and Accountability for Every Port Act of 2006 (Pub. L. 109-
347, 120 Stat. 1884 (SAFE Port Act)).
Consistent with DHS's information sharing mission, information
stored in the Automated Commercial System may be shared with other DHS
components, as well as appropriate Federal, State, local, tribal,
foreign, or international government agencies. This sharing will only
take place after DHS/CBP determines that the receiving component or
agency has a need to know the information to carry out national
security, law enforcement, immigration, intelligence, or other
functions consistent with the routine uses set forth in this system of
records notice.
To provide notice and transparency to the public, the Department of
Homeland Security, U.S. Customs and Border Protection announces an
amendment to an existing legacy Privacy Act system of records, the
Automated Commercial System, a comprehensive system used by U.S.
Customs and Border Protection to track, control, and process all
commercial goods imported into the United States. This legacy system
will now also collect additional data via the Automated Broker
Interface and Vessel Automated Manifest System.
In accordance with the Privacy Act of 1974 and as part of DHS's
ongoing effort to review and update legacy system of record notices,
DHS proposes to update and reissue the following legacy record system,
Treasury/CS.278 Automated Commercial System (66 FR 52984 October 18,
2001), as a DHS/CBP system of records notice titled, U.S. Customs and
Border Protection Automated Commercial System. Categories of
individuals and categories of records have been reviewed, and the
routine uses of this legacy system of records notice have been updated
to better reflect the DHS/CBP Automated Commercial System record
system. This reissued system will be included in DHS's inventory of
record systems.

II. Privacy Act

The Privacy Act embodies fair information principles in a statutory
framework governing the means by which the United States Government
collects, maintains, uses, and disseminates personally identifiable
information. The Privacy Act applies to information that is maintained
in a ``system of records.'' A ``system of records'' is a group of any
records under the control of an agency for which information is
retrieved by the name of an individual or by some identifying number,
symbol, or other identifying particular assigned to the individual. In
the Privacy Act, an individual is defined to encompass United States
citizens and lawful permanent residents. As a matter

[[Page 77762]]

of policy, DHS extends administrative Privacy Act protections to all
individuals where systems of records maintain information on U.S.
citizens, lawful permanent residents, and visitors. Individuals may
request access to their own records that are maintained in a system of
records in the possession or under the control of DHS by complying with
DHS Privacy Act regulations, 6 CFR part 5.
The Privacy Act requires each agency to publish in the Federal
Register a description denoting the type and character of each system
of records that the agency maintains, and the routine uses that are
contained in each system in order to make agency recordkeeping
practices transparent, to notify individuals regarding the uses to
which personally identifiable information is put, and to assist
individuals to more easily find such files within the agency. Below is
the description of the Automated Commercial System system of records.
In accordance with 5 U.S.C. 552a(r), DHS has provided a report of
this updated system of records to the Office of Management and Budget
and to Congress.
System of Records
DHS/CBP--015

System name:
U.S. Customs and Border Protection--015 Automated Commercial System

Security classification:
Unclassified.

System location:
Records are maintained at the CBP Headquarters in Washington, DC
and field offices.

Categories of individuals covered by the system:
Categories of individuals covered by this system include: CBP
employees and individuals involved in the import trade.

Categories of records in the system:
Categories of records in this system include:
Individual's name;
Social Security Number (SSN), if collected;
Address;
CBP employee names;
CBP employee SSN;
Importer of record number, which can be the IRS Employer
Identification Number (EIN), SSN, or a Customs-assigned number;
Importer name and address;
Type of importation bond;
Importation bond expiration date;
Surety code;
Violation statistics;
Protest information;
Customhouse broker number;
Customhouse name;
Customhouse address;
Bond agent name;
Bond agent SSN;
Surety code (non-SSN);
Surety name;
Customs bond information;
Liquidator identification (non-SSN);
Foreign Manufacturer/Shipper identification code;
Foreign Manufacturer/Shipper name;
Foreign Manufacturer/Shipper address;
Carrier names;
Carrier codes (non SSN) (Standard Carrier Agent Code (SCA)
for vessel carriers, International Air Transport Association (IATA) for
air carriers);
Manufacturer (or supplier) name;
Seller name;
Buyer name;
Ship to party name;
Container stuffing location;
Consolidator (stuffer);
Foreign trade zone applicant identification number;
Consignee number(s);
Country of origin;
Commodity HTSUS number;
Booking party;
Foreign port of unlading;
Place of delivery; and
Ship to party.

Authority for maintenance of the system:
19 U.S.C. 66, 1431, 1448, 1481, 1484, 1505, 1514 and 1624, section
203 of the Security and Accountability for Every (SAFE) Port Act of
2006 and section 343(a) of the Trade Act of 2002, as amended by the
Maritime Transportation Security Act of 2002.

Purpose(s):
The purpose of this system is to track, control, and process all
commercial goods imported into the United States, and to improve CBP's
ability to identify high-risk shipments so as to prevent smuggling and
ensure cargo safety and security. As part of CBP identifying high risk
shipments for border security and counterterrorism purposes, the system
includes information relating to individuals and their relationship to
the merchandise as documented in the Importer Security Filing (ISF).

Routine uses of records maintained in the system, including categories
of users and the purposes of such uses:
In addition to those disclosures generally permitted under 5 U.S.C.
552a(b) of the Privacy Act, all or a portion of the records or
information contained in this system may be disclosed outside DHS as a
routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
A. To the Department of Justice or other Federal agency conducting
litigation or in proceedings before any court, adjudicative or
administrative body, when:
1. DHS or any component thereof;
2. any employee of DHS in his/her official capacity;
3. any employee of DHS in his/her individual capacity where DOJ or
DHS has agreed to represent the employee; or
4. the United States or any agency thereof, is a party to the
litigation or has an interest in such litigation, and DHS/CBP
determines that the records are both relevant and necessary to the
litigation and the use of such records is compatible with the purpose
for which DHS/CBP collected the records.
B. To a congressional office from the record of an individual in
response to an inquiry from that congressional office made at the
request of the individual to whom the record pertains.
C. To the National Archives and Records Administration or other
Federal government agencies pursuant to records management inspections
being conducted under the authority of 44 U.S.C. 2904 and 2906.
D. To an agency, organization, or individual for the purpose of
performing audit or oversight operations as authorized by law, but only
such information as is necessary and relevant to such audit or
oversight function.
E. To appropriate agencies, entities, and persons when:
1. DHS suspects or has confirmed that the security or
confidentiality of information in the system of records has been
compromised;
2. The Department has determined that as a result of the suspected
or confirmed compromise there is a risk of harm to economic or property
interests, identity theft or fraud, or harm to the security or
integrity of this system or other systems or programs (whether
maintained by DHS or another agency or entity) that rely upon the
compromised information; and
3. The disclosure made to such agencies, entities, and persons is
reasonably necessary to assist in connection with DHS's efforts to
respond to the suspected or confirmed compromise and prevent, minimize,
or remedy such harm.
F. To contractors and their agents, grantees, experts, consultants,
and others performing or working on a contract, service, grant,
cooperative agreement, or other assignment for DHS,

[[Page 77763]]

when necessary to accomplish an agency function related to this system
of records. Individuals provided information under this routine use are
subject to the same Privacy Act requirements and limitations on
disclosure as are applicable to DHS officers and employees.
G. To a Federal, State, or local agency, or other appropriate
entity or individual, or through established liaison channels to
selected foreign governments, in order to provide intelligence,
counterintelligence, or other information for the purposes of
intelligence, counterintelligence, or antiterrorism activities
authorized by U.S. law, Executive Order, or other applicable national
security directive.
H. To an appropriate Federal, State, tribal, local, international,
or foreign law enforcement agency or other appropriate authority
charged with investigating or prosecuting a violation or enforcing or
implementing a law, rule, regulation, or order, where a record, either
on its face or in conjunction with other information, indicates a
violation or potential violation of law, which includes criminal,
civil, or regulatory violations and such disclosure is proper and
consistent with the official duties of the person making the
disclosure.
I. To the Bureau of the Census to provide information on foreign
trade data.
J. To a Federal agency, pursuant to the International Trade Data
System Memorandum of Understanding, consistent with the receiving
agency's legal authority to collect information pertaining to and/or
regulate transactions in international trade.
K. To appropriate Federal, State, local, tribal, or foreign
governmental agencies or multilateral governmental organizations
responsible for investigating or prosecuting the violations of, or for
enforcing or implementing, a statute, rule, regulation, order, license,
or treaty where DHS determines that the information would assist in the
enforcement of civil or criminal laws.
L. To a Federal, State, local, tribal, territorial, foreign, or
international agency, maintaining civil, criminal or other relevant
enforcement information or other pertinent information, which has
requested information relevant to or necessary to the requesting
agency's or the bureau's hiring or retention of an individual, or
issuance of a security clearance, license, contract, grant, or other
benefit;
M. To a court, magistrate, or administrative tribunal in the course
of presenting evidence, including disclosures to opposing counsel or
witnesses in the course of civil discovery, litigation, or settlement
negotiations, in response to a subpoena, or in connection with criminal
law proceedings;
N. To third parties during the course of an investigation to the
extent necessary to obtain information pertinent to the investigation;
O. To the Department of Justice, the United States Attorney's
Office, or a consumer reporting agency for further collection action on
any delinquent debt when circumstances warrant;
P. To appropriate Federal, State, local, tribal, or foreign
governmental agencies or multilateral governmental organizations where
DHS is aware of a need to utilize relevant data for purposes of testing
new technology and systems designed to enhance national security or
identify other violations of law;
Q. To a former employee of DHS, in accordance with applicable
regulations, for purposes of responding to an official inquiry by a
Federal, State, or local government entity or professional licensing
authority; or facilitating communications with a former employee that
may be necessary for personnel-related or other official purposes where
the Department requires information or consultation assistance from the
former employee regarding a matter within that person's former area of
responsibility;
R. To an organization or individual in either the public or private
sector, either foreign or domestic, where there is a reason to believe
that the recipient is or could become the target of a particular
terrorist activity or conspiracy, to the extent the of life or
property; and
S. To a consumer reporting agency related to owing the U.S.
Government money in accordance with 15 U.S.C 1681 et seq.

Disclosure to consumer reporting agencies:
Yes, in accordance with the provision of 15 U.S.C. 1681 et seq.

Policies and practices for storing, retrieving, accessing, retaining,
and disposing of records in the system:
Storage:
Records in this system are stored electronically or on paper in
secure facilities in a locked drawer behind a locked door. The records
that are stored electronically are stored on magnetic disc, tape,
digital media, and CD-ROM.

Retrievability:
Records may be retrieved by identification codes and/or name.

Safeguards:
Records in this system are safeguarded in accordance with
applicable rules and policies, including all applicable DHS automated
systems security and access policies. Strict controls have been imposed
to minimize the risk of compromising the information that is being
stored. Access to the computer system containing the records in this
system is limited to those individuals who have a need to know the
information for the performance of their official duties and who have
appropriate clearances or permissions. The system maintains a real-time
auditing function of individuals who access the system. Additional
safeguards may vary by component and program.

Retention and disposal:
The Importer Security Filing is retained for fifteen years from
date of submission unless it becomes linked to active law enforcement
lookout records, CBP matches to enforcement activities, and/or
investigations or cases (i.e., specific and credible threats;
individuals, and routes of concern; or other defined sets of
circumstances) for which it will remain accessible for the life of the
law enforcement matter to support that activity and other enforcement
activities that may become related. All other records are maintained
for a period of six years from the date of entry.

System Manager and address:
Director, Office of Automated Systems, CBP Headquarters, 1300
Pennsylvania Avenue, NW., Washington, DC 20229 is responsible for all
data maintained in the files.

Notification procedure:
Individuals seeking notification of and access to any record
contained in this system of records, or seeking to contest its content,
may submit a request in writing to CBP's FOIA Officer, 1300
Pennsylvania Avenue, NW., Washington, DC 20229. If an individual
believes more than one component maintains Privacy Act records
concerning him or her the individual may submit the request to the
Chief Privacy Officer, Department of Homeland Security, 245 Murray
Drive, SW., Building 410, STOP-0550, Washington, DC 20528.
When seeking records about yourself from this system of records or
any other Departmental system of records your request must conform with
the Privacy Act regulations set forth in 6 CFR part 5. You must first
verify your identity, meaning that you must provide your full

[[Page 77764]]

name, current address and date and place of birth. You must sign your
request, and your signature must either be notarized or submitted under
28 U.S.C. 1746, a law that permits statements to be made under penalty
or perjury as a substitute for notarization. While no specific form is
required, you may obtain forms for this purpose from the Director,
Disclosure and FOIA, http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.dhs.gov or 1-866-431-0486. In addition
you should provide the following:
An explanation of why you believe the Department would
have information on you,
Identify which component(s) of the Department you believe
may have the information about you,
Specify when you believe the records would have been
created,
Provide any other information that will help the FOIA
staff determine which DHS component agency may have responsive records,
If your request is seeking records pertaining to another
living individual, you must include a statement from that individual
certifying his/her agreement for you to access his/her records.
Without this bulleted information the component(s) will not be able
to conduct an effective search, and your request may be denied due to
lack of specificity or lack of compliance with applicable regulations.

Record access procedures:
See ``Notification procedure'' above.

Contesting record procedures:
See ``Notification procedure'' above.

Record source categories:
Records are obtained by authorized Customs forms or electronic
formats from individuals and/or companies incidental to the conduct of
foreign trade and required by CBP in administering the tariff laws and
regulations of the United States.

Exemptions claimed for the system:
Information in the system may be shared with law enforcement and/or
intelligence agencies pursuant to the above routine uses. The Privacy
Act requires DHS to maintain an accounting of the disclosures made
pursuant to all routines uses. Disclosing the fact that a law
enforcement or intelligence agencies has sought particular records may
affect ongoing law enforcement or intelligence activity. As such
pursuant to 5 U.S.C. 552a(j)(2) and (k)(2), DHS will claim exemption
from (c)(3), (e)(8), and (g) of the Privacy Act of 1974, as amended, as
is necessary and appropriate to protect this information.

Dated: December 10, 2008.
Hugo Teufel III,
Chief Privacy Officer, Department of Homeland Security.
[FR Doc. E8-29801 Filed 12-18-08; 8:45 am]

BILLING CODE 4410-10-P