Privacy Act of 1974: Implementation of Exemptions, DHS/CBP - 014 Regulatory Audit Archive System.


Federal Register: December 19, 2008 (Volume 73, Number 245)

Proposed Rules

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From the Federal Register Online via GPO Access []


Proposed Rules

Federal Register

This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules.

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Office of the Secretary 6 CFR Part 5

Docket No. DHS-2008-0173

Privacy Act of 1974: Implementation of Exemptions, DHS/CBP--014

Regulatory Audit Archive System

AGENCY: Privacy Office, DHS.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Department of Homeland Security (DHS) is giving concurrent notice of a revised and updated system of records pursuant to the

Privacy Act of 1974 for the U.S. Customs and Border Protection

Regulatory Audit Archive System (RAAS) system of records and this proposed rulemaking. In this proposed rulemaking, the Department proposes to exempt portions of the system of records from one or more provisions of the Privacy Act because of criminal, civil, and administrative enforcement requirements.

DATES: Comments must be received on or before January 20, 2009.

ADDRESSES: You may submit comments, identified by docket number DHS- 2008-0173, by one of the following methods:

Federal e-Rulemaking Portal:

Follow the instructions for submitting comments.

Fax: 1-866-466-5370.

Mail: Hugo Teufel III, Chief Privacy Officer, Department of Homeland Security, Washington DC 20528.

Instructions: All submissions received must include the agency name and docket number for this notice. All comments received will be posted without change to, including any personal information provided.

Docket: For access to the docket to read background documents or comments received, go to

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 contact:

Hugo Teufel III (703-235-0780), Chief Privacy Officer, Privacy Office,

U.S. Department of Homeland Security, Washington, DC 20528.

SUPPLEMENTARY INFORMATION: Background: 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)/United States Customs and Border Protection (CBP) have relied on preexisting Privacy Act systems of records notices for the collection and maintenance of records that concern records on regulatory audits of customs brokers and other persons engaged in international trade, who are the subject of audits or within the scope of an audit.

As part of its efforts to streamline and consolidate its record systems, DHS is updating and reissuing a DHS/CBP system of records under the Privacy Act (5 U.S.C. 552a) that deals with regulatory audits of customs brokers and other persons engaged in international trade.

These audits are part of CBP's continuing oversight of Customs Brokers, who are licensed by CBP, pursuant to 19 U.S.C. 1641, to act as agents for importers in the entry of merchandise and payment of duties and fees. This SORN also notes the expansion of CBP's regulatory audit authority to other persons engaged in international trade.

In this notice of proposed rulemaking, DHS now is proposing to exempt DHS/CBP--014 Regulatory Audit Archive System (RAAS), in part, from certain provisions of the 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 from which information is retrieved by the name of the individual or by some identifying number, symbol, or other identifying particular assigned to the individual.

Individuals may request 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 of 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 in finding such files within the agency.

The Privacy Act allows Government agencies to exempt certain records from the access and amendment provisions. If an agency claims an exemption, however, it must issue a Notice of Proposed Rulemaking to make clear to the public the reasons why a particular exemption is claimed.

DHS is claiming exemptions from certain requirements of the Privacy

Act for DHS/CBP-014 Regulatory Audit Archive System (RAAS). Some information in DHS/CBP-014 Regulatory Audit Archive System (RAAS) system of records relates to official DHS national security, law enforcement, immigration, and intelligence activities. These exemptions are needed to protect information relating to DHS activities from disclosure to subjects or others related to these activities.

Specifically, the exemptions are required to preclude subjects of these activities from frustrating these processes; to avoid disclosure of activity techniques; to protect the identities and physical safety of confidential informants and law enforcement personnel; to ensure DHS's ability to obtain information from third parties and other sources; to protect the privacy of third parties; and to safeguard classified information. Disclosure of information to the subject of the inquiry could also permit the subject to avoid detection or apprehension.

The exemptions proposed here are standard law enforcement and national security exemptions exercised by a large number of Federal law enforcement and intelligence agencies. In appropriate

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circumstances, where compliance would not appear to interfere with or adversely affect the law enforcement purposes of this system and the overall law enforcement process, the applicable exemptions may be waived on a case by case basis.

A notice of system of records for DHS/CBP-014 Regulatory Audit

Archive System (RAAS) is also published in this issue of the Federal


List of Subjects in 6 CFR Part 5

Freedom of information; Privacy.

For the reasons stated in the preamble, DHS proposes to amend

Chapter I of Title 6, Code of Federal Regulations, as follows:

PART 5--DISCLOSURE OF RECORDS AND INFORMATION 1. The authority citation for Part 5 continues to read as follows:

Authority: Public Law 107-296, 116 Stat. 2135, 6 U.S.C. 101 et seq.; 5 U.S.C. 301. Subpart A also issued under 5 U.S.C. 552.

Subpart B also issued under 5 U.S.C. 552a. 2. Add at the end of Appendix C to Part 5, Exemption of Record

Systems under the Privacy Act, the following new paragraph ``14'':

Appendix C to Part 5--DHS Systems of Records Exempt From the Privacy


* * * * * 14. The Department of Homeland Security/United States Customs and Border Protection--014 Regulatory Audit Archive System (RAAS) system of records consists of electronic and paper records and will be used by DHS and its components. DHS/CBP-014 Regulatory Audit

Archive System (RAAS) is a repository of information held by DHS in connection with its several and varied missions and functions, including, but not limited to: the enforcement of civil and criminal laws; investigations, inquiries, and proceedings there under; and national security and intelligence activities. DHS/CBP-014

Regulatory Audit Archive System (RAAS) contains information that is collected by, on behalf of, in support of, or in cooperation with

DHS and its components and may contain personally identifiable information collected by other Federal, State, local, tribal, foreign, or international government agencies. Pursuant to 5 U.S.C. 552a(k)(2) of the Privacy Act, this system is exempt from the following provisions of the Privacy Act, subject to the limitations set forth in those subsections: 5 U.S.C. 552a(c)(3), (d), (e)(1),

(e)(4)(G), (e)(4)(H), (e)(4)(I), and (f). Exemptions from these particular subsections are justified, on a case-by-case basis to be determined at the time a request is made, for the following reasons:

(a) From subsection (c)(3) (Accounting for Disclosures) because release of the accounting of disclosures could alert the subject of an investigation of an actual or potential criminal, civil, or regulatory violation to the existence of the investigation, and reveal investigative interest on the part of DHS as well as the recipient agency. Disclosure of the accounting would therefore present a serious impediment to law enforcement efforts and/or efforts to preserve national security. Disclosure of the accounting would also permit the individual who is the subject of a record to impede the investigation, to tamper with witnesses or evidence, and to avoid detection or apprehension, which would undermine the entire investigative process.

(b) From subsection (d) (Access to Records) because access to the records contained in this system of records could inform the subject of an investigation of an actual or potential criminal, civil, or regulatory violation, to the existence of the investigation, and reveal investigative interest on the part of DHS or another agency. Access to the records could permit the individual who is the subject of a record to impede the investigation, to tamper with witnesses or evidence, and to avoid detection or apprehension. Amendment of the records could interfere with ongoing investigations and law enforcement activities and would impose an impossible administrative burden by requiring investigations to be continuously reinvestigated. In addition, permitting access and amendment to such information could disclose security-sensitive information that could be detrimental to homeland security.

(c) From subsection (e)(1) (Relevancy and Necessity of

Information) because in the course of investigations into potential violations of Federal law, the accuracy of information obtained or introduced occasionally may be unclear or the information may not be strictly relevant or necessary to a specific investigation. In the interests of effective law enforcement, it is appropriate to retain all information that may aid in establishing patterns of unlawful activity.

(d) From subsections (e)(4)(G), (H), and (I) (Agency

Requirements), and (f) (Agency Rules) because portions of this system are exempt from the individual access provisions of subsection (d) for the reasons noted above, and therefore DHS is not required to establish requirements, rules, or procedures with respect to such access. Providing notice to individuals with respect to existence of records pertaining to them in the system of records or otherwise setting up procedures pursuant to which individuals may access and view records pertaining to themselves in the system would undermine investigative efforts and reveal the identities of witnesses, and potential witnesses, and confidential informants.

Dated: December 10, 2008.

Hugo Teufel III,

Chief Privacy Officer, Department of Homeland Security.

FR Doc. E8-29875 Filed 12-18-08; 8:45 am