[Federal Register: December 19, 2008 (Volume 73, Number 245)]
[Proposed Rules]               
[Page 77548-77549]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19de08-30]                         

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DEPARTMENT OF HOMELAND SECURITY

Office of the Secretary

6 CFR Part 5

[Docket No DHS-2008-0195]

 
Privacy Act of 1974: Implementation of Exemptions; U.S. Customs 
and Border Protection--015 Automated Commercial System

AGENCY: Privacy Office, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Homeland Security is amending its 
regulations to exempt portions of a system of records from certain 
provisions of the Privacy Act. Specifically, the Department proposes to 
exempt portions of the CBP Automated Commercial System (ACS) from one 
or more provisions of the Privacy Act because of criminal, civil, and 
administrative enforcement requirements.

DATES: The public is invited to submit comments by January 20, 2009.

ADDRESSES: You may submit comments, identified by docket number DHS-
2008-0195 by one of the following methods:
     Federal e-Rulemaking Portal: 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.

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, Regulations and 
Rulings, Office of International Trade, 1300 Pennsylvania Ave., NW., 
Washington, DC 20229. 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:

Background

    The Department of Homeland Security (DHS), elsewhere in this 
edition of the Federal Register, published a Privacy Act system of 
records notice describing records in the Automated Commercial System 
(ACS).
    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'').
    The Automated Commercial System (ACS) is the comprehensive system 
used

[[Page 77549]]

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 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.
    No exemption shall be asserted with respect to information 
maintained in the system as it relates to data submitted by or on 
behalf of a person who travels to visit the United States, nor shall an 
exemption be asserted with respect to the resulting determination 
(authorized to travel, not authorized to travel, pending).
    This system may contain records or information pertaining to the 
accounting of disclosures made from ACS to other law enforcement 
agencies (Federal, State, local, foreign, international, or tribal) in 
accordance with the published routine uses. For the accounting of these 
disclosures only, in accordance with 5 U.S.C. 552a(j)(2) and (k)(2), 
DHS will claim the original exemptions for these records or information 
from subsection (c)(3), (e)(8), and (g) of the Privacy Act of 1974, as 
amended, as necessary and appropriate to protect such information. 
Moreover, DHS will add this exemption to Appendix C to 6 CFR part 5, 
DHS Systems of Records Exempt from the Privacy Act. Such exempt records 
or information may be law enforcement or national security 
investigation records, law enforcement activity and encounter records, 
or terrorist screening records.
    DHS needs these exemptions in order to protect information relating 
to law enforcement investigations from disclosure to subjects of 
investigations and others who could interfere with investigatory and 
law enforcement activities. Specifically, the exemptions are required 
to: Preclude subjects of investigations from frustrating the 
investigative process; avoid disclosure of investigative techniques; 
protect the identities and physical safety of confidential informants 
and of law enforcement personnel; ensure DHS's and other federal 
agencies' ability to obtain information from third parties and other 
sources; protect the privacy of third parties; and safeguard sensitive 
information.
    Nonetheless, DHS will examine each request on a case-by-case basis, 
and, after conferring with the appropriate component or agency, may 
waive applicable exemptions in appropriate circumstances and where it 
would not appear to interfere with or adversely affect the law 
enforcement or national security investigation.
    Again, DHS will not assert any exemption with respect to 
information maintained in the system that is collected from a person 
and submitted by that person's air or vessel carrier, if that person, 
or his or her agent, seeks access or amendment of such information.

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.

    2. At the end of Appendix C to Part 5, add the following new 
paragraph ``14'':

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

* * * * *
    14. DHS/CBP-015, Automated Commercial System (ACS). A portion of 
the following system of records is exempt from 5 U.S.C. 552a(c)(3), 
(e)(8), and (g) pursuant to 5 U.S.C. 552a(j)(2) and (k)(2). Further, 
no exemption shall be asserted with respect to information 
maintained in the system as it relates to data submitted by or on 
behalf of a person who travels to visit the United States and 
crosses the border, nor shall an exemption be asserted with respect 
to the resulting determination (approval or denial). After 
conferring with the appropriate component or agency, DHS may waive 
applicable exemptions in appropriate circumstances and where it 
would not appear to interfere with or adversely affect the law 
enforcement purposes of the systems from which the information is 
recompiled or in which it is contained. Exemptions from the above 
particular subsections are justified, on a case-by-case basis to be 
determined at the time a request is made, when information in this 
system of records may impede a law enforcement or national security 
investigation:
    (a) From subsection (c)(3) (Accounting for Disclosure) because 
making available to a record subject the accounting of disclosures 
from records concerning him or her would specifically reveal any 
investigative interest in the individual. Revealing this information 
could reasonably be expected to compromise ongoing efforts to 
investigate a violation of U.S. law, including investigations of a 
known or suspected terrorist, by notifying the record subject that 
he or she is under investigation. This information could also permit 
the record subject to take measures to impede the investigation, 
e.g., destroy evidence, intimidate potential witnesses, or flee the 
area to avoid or impede the investigation.
    (b) From subsection (e)(8) (Notice on Individuals) because to 
require individual notice of disclosure of information due to 
compulsory legal process would pose an impossible administrative 
burden on DHS and other agencies and could alert the subjects of 
counterterrorism or law enforcement investigations to the fact of 
those investigations when not previously known.
    (c) From subsection (g) (Civil Remedies) to the extent that the 
system is exempt from other specific subsections of the Privacy Act.

    Dated: December 10, 2008.
Hugo Teufel III,
Chief Privacy Officer, Department of Homeland Security.

 [FR Doc. E8-29839 Filed 12-18-08; 8:45 am]

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