Announcement of Vessel Manifest Confidentiality Online Application and Update of Mailing and Email Addresses for Submission of Vessel Manifest Confidentiality Certifications
| Published date | 22 May 2020 |
| Citation | 85 FR 31054 |
| Record Number | 2020-10802 |
| Section | Rules and Regulations |
| Court | U.s. Customs And Border Protection |
Federal Register, Volume 85 Issue 100 (Friday, May 22, 2020)
[Federal Register Volume 85, Number 100 (Friday, May 22, 2020)]
[Rules and Regulations]
[Pages 31054-31057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10802]
[[Page 31054]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
19 CFR Part 103
[CBP Dec. 20-09]
RIN 1651-AB36
Announcement of Vessel Manifest Confidentiality Online
Application and Update of Mailing and Email Addresses for Submission of
Vessel Manifest Confidentiality Certifications
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: Final rule; technical amendment.
-----------------------------------------------------------------------
SUMMARY: This document makes technical amendments U.S. Customs and
Border Protection (CBP) regulations in the Code of Federal Regulations
by updating the mailing address and codifying the email address for
submitting requests for confidential treatment of vessel manifest
certifications. In addition, this document amends the regulations to
announce a new way to submit requests for confidential treatment of
vessel manifest certifications--via the Vessel Manifest Confidentiality
Online Application, an online portal on www.CBP.gov. This document also
makes other technical conforming changes, specifically updating names
and references.
DATES: The final rule is effective May 22, 2020.
FOR FURTHER INFORMATION CONTACT: William G. Jackson, Trade
Transformation Office, Office of Trade, [email protected]
or (571) 468-5110.
SUPPLEMENTARY INFORMATION:
Background
U.S. Customs and Border Protection's (CBP) regulations implementing
the Freedom of Information Act (5 U.S.C. 552a) are contained in part
103 of title 19, Code of Federal Regulations (19 CFR part 103). These
regulations prescribe rules governing disclosure and production of
documents and information under various circumstances. Subpart C of
part 103 contains exceptions to these general disclosure requirements
by listing certain information that is subject to restricted access.
Section 103.31 generally provides for limited disclosure of vessel
manifests and statistical reports. Section 103.31(d), the subject of
this rulemaking, describes a process by which parties can request that
CBP keep certain manifest information confidential. For an inward
manifest, an importer or consignee may request confidential treatment
of its name and address, including identifying marks and numbers. See
19 CFR 103.31(d)(1). For an outward manifest, a shipper, or authorized
employee or official of the shipper, may request confidential treatment
of the shipper's name and address. See 19 CFR 103.31(d)(2). Currently,
the regulations provide a mailing address to submit confidentiality
requests, and parties can also submit their requests via email.
Discussion of Changes
This document amends the regulations to update the mailing address,
codify the email address and create an electronic window to submit
requests for confidential treatment of vessel manifest information to
CBP. For mail submissions, CBP is updating the mailing address to the
following: Vessel Manifest Program Manager, Office of Trade (Mail Stop
1354), U.S. Customs and Border Protection, 1801 N Beauregard Street,
Alexandria, VA 22311. For email submissions, CBP is codifying the email
address, which is [email protected]. Finally,
CBP is providing for submissions via an online portal on www.CBP.gov,
known as the Vessel Manifest Confidentiality Online Application. This
new portal allows CBP to review confidentiality requests more
efficiently by automating the submission process, reducing the
processing time to as little as 24 hours in most cases.
Technical Amendments
Due to the renaming of the U.S. Customs Service to U.S. Customs and
Border Protection (CBP), this document amends 19 CFR 103.31 by
replacing several references to ``Customs'' with ``CBP.''
This document also amends 19 CFR 103.0 and 103.2 to remove
references to 19 CFR 103.35 because Sec. 103.35 no longer exists. On
November 22, 2016, the Department of Homeland Security (DHS) revised
its Freedom of Information Act regulations,\1\ which moved the
regulations pertaining to CBP's disclosure procedures for confidential
commercial information from 19 CFR 103.35 to the DHS regulations, 6 CFR
5.12. Because of this change, this document makes conforming changes to
19 CFR 103.0 and 103.2.
---------------------------------------------------------------------------
\1\ Freedom of Information Act Regulations, 81 FR 83625 (Nov.
22, 2016).
---------------------------------------------------------------------------
Inapplicability of Prior Notice and Delayed Effective Date
According to section 553 of the Administrative Procedure Act (APA)
(5 U.S.C. 553), rulemaking generally requires prior notice and comment,
and a 30-day delayed effective date, subject to specified exceptions.
Pursuant to 5 U.S.C. 553(a)(2), matters relating to agency management
or personnel are excepted from the requirements of section 553.
Additionally, as provided in 5 U.S.C. 553(b)(3)(A) and 553(d)(2), the
prior notice and comment and delayed effective date requirements do not
apply when agencies promulgate rules concerning agency organization,
procedure, or practice.
This final rule does not require prior notice and comment because
it relates to agency management and agency organization, procedures, or
practice. As explained above, the rule merely updates the methods
through which CBP will receive requests for confidential treatment of
vessel manifests by updating the mailing address, codifying the email
address, and establishing an automated portal on www.CBP.gov.
Accordingly, this rule does not affect the substantive rights or
interests of the public, but merely conforms the regulations to
existing agency management and agency procedures and organization.
Executive Orders 12866, 13563, and 13771
Executive Orders 12866 (``Regulatory Planning and Review'') and
13563 (``Improving Regulation and Regulatory Review'') direct agencies
to assess the costs and benefits of available regulatory alternatives
and, if regulation is necessary, to select regulatory approaches that
maximize net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. Executive Order 13771 (``Reducing Regulation and
Controlling Regulatory Costs'') directs agencies to reduce regulation
and control regulatory costs and provides that ``for every one new
regulation issued, at least two prior regulations be identified for
elimination, and that the cost of planned regulations be prudently
managed and controlled through a budgeting process.''
The Office of Management and Budget (OMB) has not designated this
rule as a
[[Page 31055]]
``significant regulatory action,'' under section 3(f) of Executive
Order 12866. Accordingly, OMB has not reviewed this regulation. This
regulation updates the regulations surrounding the process by which an
importer, consignee, or shipper \2\ may request confidentiality for its
vessel manifest, eliminating some of the costs of processing the vessel
manifest requests and increasing efficiency by providing an electronic
option. This is a deregulatory action under Executive Order 13771,\3\
with an estimated net regulatory cost saving of $50,245 on an
annualized basis (in 2016 U.S. dollars, using a 7 percent discount rate
over a perpetual time horizon and discounted back to 2016).
---------------------------------------------------------------------------
\2\ For the purposes of this analysis, a shipper may include an
authorized employee or official of the shipper.
\3\ See OMB's Memorandum, ``Guidance Implementing Executive
Order 13771, `Reducing Regulation and Controlling Regulatory Costs'
'' (April 5, 2017).
---------------------------------------------------------------------------
Currently, certain vessel manifest information is available to the
public.\4\ However, importers, consignees, and shippers have the option
to request that CBP keep certain elements of vessel manifests
confidential. These elements include the consignee name and address,
notify party name and address, and shipper name(s) and address(es).
Importers, consignees, or shippers may choose to keep this information
confidential to prevent their competitors from linking their manifest
data to their company name(s). Certified requests may be sent by the
importer, consignee, or shipper either by hard copy through the mail or
by email to CBP, and requests must be renewed every two years.
---------------------------------------------------------------------------
\4\ See 19 CFR 103.31.
---------------------------------------------------------------------------
Though vessel manifest confidentiality requests were formerly sent
to CBP's Office of Privacy, as of January 2, 2015, requests should be
submitted to CBP's Trade Transformation Office (TTO). However, the
current regulations do not reflect this change. The Office of Privacy
thus currently forwards all requests received to TTO. This rule amends
the vessel manifest confidentiality request regulation by updating the
address to which paper requests and renewal requests should be sent.
The rule further provides for an electronic window for submitting the
confidentiality request. Updating the regulation with the address of
the correct office and including the electronic submission window would
reduce the overall mailing and processing time for importers,
consignees, shippers, and CBP alike.
In prior years, CBP has advised importers that it takes 60-90 days
to process manifest confidentiality requests.\5\ This was due to a
significant backlog of requests.\6\ TTO, which is responsible for
processing the requests, has cleared the backlog, and processing of
paper or email requests now takes no more than five days from
receipt.\7\ Processing requires that CBP take the information in the
request, regardless of how it was submitted, and transcribe it into the
Automated Commercial Environment (ACE). With the electronic option
described in this rule, processing would take no more than 24 hours, as
the system would upload requests into ACE each night.\8\
---------------------------------------------------------------------------
\5\ Source: U.S. Customs and Border Protection, Trade
Information Notice: Automation of the Electronic Vessel Manifest
Confidentiality Request. 2019. Available at https://www.cbp.gov/document/technical-documentation/electronic-vessel-manifest-confidentiality. Accessed October 30, 2019.
\6\ Source: Correspondence with CBP's Trade Transformation
Office on October 29, 2019.
\7\ Id.
\8\ The portal does not reside in ACE. Instead, data is uploaded
from the portal to ACE each night.
---------------------------------------------------------------------------
Approximately 12,000 manifest confidentiality requests are
processed each year. Of these, about 90 percent, or 10,800, are sent
via email. The remaining 10 percent, or 1,200, are sent by mail. CBP
believes that it would continue to process 12,000 of these requests
each year,\9\ but that most importers and consignees would choose to
use the electronic window when it becomes available on publication of
this rule due to the increased convenience, reduction in errors, and
faster processing time. Submitted identifier information will be
instantly validated to ensure it matches the previously submitted
information that is already in CBP systems, making the portal easier,
faster, and less prone to errors than mail or email submissions. CBP
estimates that 95 percent of these requests, or 11,400, would be filed
via the electronic portal with this rule.\10\ The remaining 600 would
continue to be submitted either by mail or email.
---------------------------------------------------------------------------
\9\ TTO does believe there is a small chance that request
submissions could spike as more importers, consignees, and shippers
learn of the new electronic option. However, there is no similar
program release to use as a comparison, so there is no way to
accurately predict how many more importers, consignees, or shippers
might exercise the option of confidentiality only once they can do
so through the electronic window.
\10\ Source: Correspondence with CBP's Trade Transformation
Office on October 29, 2019.
---------------------------------------------------------------------------
This rule would eliminate several costs in processing these vessel
manifest requests. Importers, consignees, and shippers would no longer
need to pay to print and mail their requests if they choose to use the
electronic option over the paper mail-in option. There is no prescribed
format for a vessel manifest confidentiality request. It must be
certified by the importer, consignee, or shipper and contain the
party's Internal Revenue Service Employer Number, if available, as well
as the information the party wishes to keep confidential. The majority
of requests are therefore only a page or two in length. TTO believes
that due to the portal's relative speed, ease of use, and data
validation, of the 10 percent of requests currently submitted by the
paper mail-in option, about half would move to the electronic option
with this rule. Parties who switch would collectively save
approximately $330.00 per year on postage.\11\ Those parties would also
save about $30.00 in printing costs each year.\12\
---------------------------------------------------------------------------
\11\ 50 percent x 1,200 mailed requests = 600 requests x first-
class postage cost of $0.55 avoided = $330 cost saving. As of
October 2019, a first-class stamp for a standard-sized envelope
costs $0.55. See United States Postal Service, First-Class Mail.
Available at https://www.usps.com/ship/first-class-mail.htm.
Accessed October 30, 2019. Printing cost per page based on: U.S.
Department of State. Supporting Statement for Paperwork Reduction
Act Submission OMB Number 1405-0068: Medical History and Examination
for Foreign Service. June 20, 2017. Available at https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201706-1405-001.
Accessed October 23, 2019.
\12\ 50 percent x 1,200 mailed requests = 600 requests x $0.05
printing cost per page avoided = $30 cost saving.
---------------------------------------------------------------------------
This rule's electronic option would also benefit importers,
consignees, and shippers by reducing processing times and errors, thus
mitigating risk to their confidentiality during processing.
Historically, processing took anywhere from 60-90 days as CBP worked
through a significant backlog in requests. Currently, processing may
take up to five days, which would be reduced to 24 hours with the
rule's electronic option. Utilizing the electronic option also would
not increase the time burden on importers, consignees, and shippers to
complete a request as they would submit the same amount of information
via the electronic portal as they would provide on their paper-based
form. Submitting a request through the electronic window would also
eliminate the need for TTO employees to transcribe the requests into
ACE manually as they do now, reducing the likelihood of human error.
CBP would see savings as well, primarily because TTO employees
would no longer need to manually enter all requests into ACE.\13\ Until
the
[[Page 31056]]
electronic window is available, all requests, regardless of how they
are submitted, are transcribed into ACE. Once the window is available,
TTO employees would no longer need to transcribe the 11,400 (95
percent) requests received via the window. The majority of these
requests (90 percent) take about 5 minutes (0.0833 hours) to
process.\14\ The other 10 percent of requests are longer, usually sent
in by large corporations with many name and address variations.\15\
These requests currently take an average of 30 minutes (0.5 hours) to
process.\16\ Eliminating the transcription of these requests would save
CBP about $115,967 annually based on the current time burdens for TTO
employees and their assumed hourly time value of $81.38.\17\ Table 1
summarizes the annual cost savings of this rule to importers,
consignees, shippers, and CBP.
---------------------------------------------------------------------------
\13\ CBP would also need to forward fewer requests from office
to office as a result of updating the address to which paper
requests can be sent. However, because a small number of importers,
consignees, and shippers are expected to continue using the paper
option, these savings are negligible.
\14\ Source: Correspondence with CBP's Trade Transformation
Office on October 29, 2019.
\15\ Id.
\16\ Id.
\17\ 90 percent x 11,400 transcribed requests = 10,260 shorter
transcribed requests x 0.0833-hour transcription time burden to CBP
per request = 855-hour (rounded) transcription time burden x assumed
$81.38 hourly time value of TTO employees = $69,580 (rounded) time
cost saving; 10 percent x 11,400 transcribed requests = 1,140 longer
transcribed requests x 0.5-hour transcription time burden to CBP per
request = 570-hour (rounded) transcription time burden x assumed
$81.38 hourly time value of TTO employees = $46,387 (rounded) time
cost saving; $69,580 time cost avoided for shorter requests +
$46,387 (rounded) time cost avoided for longer requests = $115,967
total transcription time cost saving. CBP bases the $81.38 hourly
wage on the FY 2020 salary, benefits, and non-salary costs (i.e.,
fully loaded wage) of the national average of CBP Trade and Revenue
positions. Source: Email correspondence with CBP's Office of Finance
on June 12, 2019.
Table 1--Total Monetized Annual Cost Savings (Benefits) of Rule
[Undiscounted 2020 U.S. dollars]
------------------------------------------------------------------------
Annual cost
Party Savings type savings
------------------------------------------------------------------------
Importer/Consignee/Shipper..... Postage................ $330
Importer/Consignee/Shipper..... Printing............... 30
CBP............................ Transcription.......... 115,967
---------------
Total...................... ....................... 116,327
------------------------------------------------------------------------
Along with benefits, the rule would introduce some costs. In 2019,
CBP incurred $270,177 in costs to set up the electronic submission
system, including development, testing, and training.\18\ CBP would
incur costs of approximately $30,000 per year for ongoing maintenance
of the electronic submission system.\19\ Importers, consignees, and
shippers would not face any new costs from this rule.
---------------------------------------------------------------------------
\18\ CBP has adjusted the $266,447 in initial costs to 2020
dollars using the GDP deflator of +1.4%. Source: Bureau of Economic
Analysis, ``GDP Deflator.'' Updated April 30, 2020. https://www.bea.gov/data/prices-inflation/gdp-price-deflator. Accessed May
8, 2020.
\19\ Source: Email correspondence with CBP's Trade
Transformation Office on October 22, 2019.
---------------------------------------------------------------------------
Overall, this rule would make the process of requesting vessel
manifest confidentiality more efficient for CBP, importers, consignees,
and shippers, with minimal ongoing costs. Over a five-year period, this
rule would result in an undiscounted net cost saving (i.e., benefit) of
$191,458 (see Table 2). Table 3 contains the present value and
annualized cost and cost saving amounts for a five-year period of
analysis using discount rates of 3 percent and 7 percent. On net, this
rule would result in an estimated regulatory cost saving of $31,582 on
an annualized basis over a 5 year period (in 2020 US dollars, using a 7
percent discount rate).
Table 2--Total Monetized Net Impacts of Rule
[Undiscounted 2020 U.S. dollars]
----------------------------------------------------------------------------------------------------------------
Net cost
Year Cost savings Costs savings
----------------------------------------------------------------------------------------------------------------
1............................................................... $116,327 $270,177 -$153,850
2............................................................... 116,327 30,000 86,327
3............................................................... 116,327 30,000 86,327
4............................................................... 116,327 30,000 86,327
5............................................................... 116,327 30,000 86,327
-----------------------------------------------
Total....................................................... 581,635 390,177 191,458
----------------------------------------------------------------------------------------------------------------
Table 3--Total Monetized Present Value and Annualized Net Impacts of Rule
[5-Year period, 2020 U.S. dollars]
----------------------------------------------------------------------------------------------------------------
3% Discount rate 7% Discount rate
--------------------------------------------------------------------
Present value Annualized Present value Annualized
----------------------------------------------------------------------------------------------------------------
Cost Savings............................... $532,741 $116,327 $476,962 $116,327
Costs...................................... 370,573 80,916 347,470 84,745
Net Cost Savings....................... 162,169 35,410 129,491 31,582
----------------------------------------------------------------------------------------------------------------
[[Page 31057]]
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended
by the Small Business Regulatory Enforcement and Fairness Act of 1996,
requires an agency to prepare and make available to the public an
initial regulatory flexibility analysis that describes the effect of a
proposed rule on small entities (i.e., small businesses, small
organizations, and small governmental jurisdictions) when the agency is
required to publish a general notice of proposed rulemaking for a rule.
Since a general notice of proposed rulemaking is not necessary for this
rule, CBP is not required to prepare an initial regulatory flexibility
analysis for this rule.
Signing Authority
This document is being issued in accordance with 19 CFR 0.2(a),
which provides that the authority of the Secretary of the Treasury with
respect to CBP regulations that are not related to customs revenue
functions was transferred to the Secretary of Homeland Security
pursuant to Section 403(l) of the Homeland Security Act of 2002.
Accordingly, this final rule to amend such regulations may be signed by
the Secretary of Homeland Security (or his or her delegate).
List of Subjects in 19 CFR Part 103
Administrative practice and procedure, Confidential business
information, Courts, Freedom of information, Law enforcement, Privacy,
Reporting and recordkeeping requirements.
Amendments to the Regulations
For the reasons set forth above, part 103 of the CBP regulations
(19 CFR part 103) is amended as set forth below.
PART 103--AVAILABILITY OF INFORMATION
0
1. The authority citation for part 103 continues to read in part as
follows:
Authority: 5 U.S.C. 301, 552, 552a; 19 U.S.C. 66, 1624; 31
U.S.C. 9701.
Section 103.31 also issued under 19 U.S.C. 1431;
* * * * *
Sec. 103.0 [Amended]
0
2. Section 103.0 is amended by removing the phrase ``Except for 19 CFR
103.35, the'' and adding, in its place, the word ``The''.
Sec. 103.2 [Amended]
0
3. Section 103.2 is amended by:
0
a. Removing from paragraph (a) the words ``except as provided in
paragraph (b) of this section,'';
0
b. Removing the paragraph designation ``(a)'' and the paragraph
heading; and
0
c. Removing paragraph (b).
0
4. Section 103.31 is amended by removing the word ``Customs'' and
adding, in its place, the term ``CBP'' in paragraphs (a)(3), (b), and
(c) and revising paragraphs (d)(1)(iii) and (iv) and (d)(2)(iii) to
read as follows:
Sec. 103.31 Information on vessel manifests and summary statistical
reports.
* * * * *
(d) * * *
(1) * * *
(iii) The certification must be submitted to the Vessel Manifest
Program Manager, Office of Trade (Mail Stop 1354), U.S. Customs and
Border Protection, 1801 N Beauregard Street, Alexandria, VA 22311; or
submitted electronically via an email transmission at
[email protected] or via the Vessel Manifest
Confidentiality Online Application on CBP's public website,
www.CBP.gov.
(iv) Each initial certification will be valid for a period of two
years from the date of receipt. Renewal certifications should be
submitted to the Vessel Manifest Program Manager at least 60 days prior
to the expiration of the current certification. Information so
certified may be copied, but not published, by the press during the
effective period of the certification. An importer or consignee shall
be given written notification by CBP of the receipt of its
certification of confidentiality.
(2) * * *
(iii) The certification must be submitted to the Vessel Manifest
Program Manager, Office of Trade (Mail Stop 1354), U.S. Customs and
Border Protection, 1801 N Beauregard Street, Alexandria, VA 22311; or
submitted electronically via an email transmission at
[email protected] or via the Vessel Manifest
Confidentiality Online Application on the CBP's public website,
www.CBP.gov.
* * * * *
Dated: May 14, 2020.
Mark A. Morgan,
Acting Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2020-10802 Filed 5-21-20; 8:45 am]
BILLING CODE 9111-14-P
