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Federal Register / Vol. 86, No. 246 / Tuesday, December 28, 2021 / Rules and Regulations
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2. Purpose of Rule Commercial vessels arriving at and departing from U.S. ports of entry POEs must comply with statutory and regulatory requirements to engage in U.S. trade. As previously mentioned, under current regulations commercial vessels, regardless of whether they are cargo, non-cargo,20 or cruise ships, traveling to U.S. POEs from a foreign port or place must begin their trip by submitting similar manifest information electronically to USCG through eNOA/
D and APIS, and then submitting the same manifest data to CBP on the paper Form I418. At departure, commercial vessels must submit similar departure data to USCG and CBP. Despite similarities in the vessel arrival and departure data submitted per Form I
418, APIS, and eNOA/D requirements, current regulations do not allow data to be transmitted electronically, such as through eNOA/D or email, to satisfy Form I418s passenger and crew list submission requirement. In fact, failure to submit the arrival or departure manifest in paper format may result in fines and penalties. To reduce redundant data submissions and automate manifest recordkeeping, CBP
launched the I418 Automation test program in 2011. This test has allowed for the automated, electronic submission of the data elements on Form I418 from test participants using manifest data previously submitted electronically to the NVMC through eNOA/D, APIS, or other means. Based on the successful operation of the test, CBP now intends to establish the automated, electronic Form I418 data submission process by regulation.
Through this rulemaking, CBP will amend its regulations under 8 CFR part 251, 8 CFR part 258, and 19 CFR part 4 to require the electronic submission of the data elements required from vessel operators on Form I418 in lieu of paper form submissions. CBP will generally no longer require the paper Form I418.
The updated regulations will require vessel operators to electronically submit the data elements required on the Form I418 via an EDI approved by CBP. CBP
will continue to use the eNOA/D system as the approved EDI. Under this process, CBP systems will compile eNOA/D, APIS, and any other electronic manifest data submitted by vessel operators prior to arrival and at departure into a passenger and crew list format reflective 20 For the purposes of this analysis, non-cargo commercial vessels include all commercial vessels other than cargo ships and cruise ships. Tugboats fall under this classification.

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of an electronic Form I418.21 The act of electronically submitting the data elements required on Form I418 will also constitute the vessel Masters certification that the manifest information is accurate,22 and eliminate the current need to generally collect Form I418s vessel master or operator and CBP officer signatures for certification.23 CBP will also retain its authority to require paper Form I418
submissions in the event of certain technical difficulties, such as system outages and disruptions, that make it impossible to submit or receive manifest data electronically, and according to CBP discretion.24 This rule will streamline vessel arrival and departure processes by eliminating redundant data submissions, simplifying vessel inspections, and automating recordkeeping.
3. Population Affected by Rule This rule will affect commercial vessel operators and CBP, though at different magnitudes according to the arriving vessel type and I418
Automation test program participation during the period of analysis spanning from FY 2021 to FY 2025. To determine the extent of the population affected by this rule, CBP relies on historical commercial vessel arrivals/departures and test participation data.
From FY 2015 to FY 2019, cargo and non-cargo vessel arrivals/departures of I418 Automation test program participants grew at a compound annual 21 The embark date required on Form I418 is transmitted to CBP via eNOA/D. The disembark date/date separated i.e., the date when a crewmember permanently departs the vessel is calculated by CBP systems. This rule does not change this practice.
22 This includes certifying that certification that CBP baggage declaration requirements have been made known to incoming passengers; that any required CBP baggage declarations have been or will simultaneously be filed as required by law and regulation with the proper CBP officer; that the responsibilities of the vessel operator have been or will be done as required by law or regulation before the proper CBP officer; and that there are no steerage passengers on board the vessel.
23 CBP officer signatures are generally dictated on the form as a unique receipt number tied to the officer. For the purposes of this analysis, CBP refers to these receipt numbers as signatures.
24 As described above, CBP will retain its authority to require paper submissions in the event the master or agent of the vessel is unable to electronically submit the data elements required on Form I418 via an electronic data interchange system approved by CBP due to technical issues, such as when the onboard computer system is malfunctioning or there is no internet access, and there is no shore-side support available; CBP is experiencing technical difficulties affecting its receipt or processing of electronically submitted information; or where CBP, in its discretion, determines that a paper Form I418 is acceptable under the circumstances presented by the master or agent of a vessel.

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rate of 6.0 percent while non-participant cargo and non-cargo vessel arrivals/
departures declined at a compound annual rate of 1.9 percent. During the same period, participant and nonparticipant cruise ship arrivals/
departures both grew at a compound annual rate of 2.4 percent see Table 1.
In the future, CBP projects that commercial vessel arrivals/departures will remain consistent with their more conservative historical trends prior to the COVID19 pandemic beginning in 2020. Accordingly, CBP estimates that future cargo and non-cargo vessel arrivals/departures of I418 Automation test program participants will increase increasing at a rate of 6.0 percent per year, non-participant cargo and noncargo vessel arrivals/departures will decrease at a rate of 1.9 percent per year, and all cruise ship arrivals/departures will increase at a rate of 2.4 percent per year from their FY 2019 values between FY 2021 and FY 2025.25 CBP believes that these projections best represent the normal, recent growth of commercial vessel arrivals/departures while still accounting for the projected economic and travel slowdowns due to the COVID19 pandemic. CBP did not use FY 2020 data as a basis for future growth because it exhibits extreme, abnormal drops in vessel arrivals/
departures due to the COVID19
pandemic beginning during that year.
25 Based on historical commercial vessel data and future commercial vessel demand outlooks. For future cargo and non-cargo vessel outlook information, see: Pallis, Athanasios A, et al.
Transport and Trade Facilitation: COVID19 and Maritime Transport Impact and Responses, United Nations Conference on Trade and Development UNCTAD, Series No. 15, March 2021. Available at https unctad.org/system/files/official-document/
dtltlb2021d1_en.pdf. Accessed July 23, 2021; World Bank Group. Global Economic Prospects. Chpt. 1.
World Bank Group Publishing. June 2021. Available at https openknowledge.worldbank.org/bitstream/
handle/10986/35647/9781464816659-ch01.pdf.
Accessed July 23, 2020; Moodys: Outlook for US
public ports revised to stable on strengthening economic activity, improving cargo volumes.
Moodys Investors Service, December 7, 2020.
Available at http www.moodys.com/research documentcontentpage.aspx?docid=PBC_1247050.
Accessed July 23, 2021; Ohse, Friedemann. Will 2021 bring about recovery for the global maritime industry? OceanInsights, September 30, 2020.
Available at https www.ocean-insights.com/
business-news/will-2021-bring-about-recovery-forthe-global-maritime-industry/?cli_
action=1602257398.7141/8. Accessed October 9, 2020. For future cruise ship outlook information, see: Giese, Monique. COVID19 Impacts on Cruise Industry. KPMG, July 23, 2020. Available at https home.kpmg/xx/en/blogs/home/posts/2020/
07/covid-19-impacts-on-global-cruiseindustry.html. Accessed October 23, 2020;
McMahon, Shannon. 5 takeaways from the cruise industrys report on a return to sailing.
Washington Post, September 21, 2020. Available at https www.washingtonpost.com/travel/2020/09/
21/cruise-return-report-covid-19/. Accessed October 23, 2020.

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