ACE Program Update

Deborah Augustin Executive Director, ACE Business Office

U.S. Customs and Border Protection Office of International Trade

Trade Processing at a Glance

In FY 2015, U.S. Customs and Border Protection processed…

• 33 million imports (entries) worth over $2.4 trillion.

• $1.5 trillion+ worth of U.S. exports.

• 26.3+ million imported cargo containers through the nation’s ports of entry – an increase of 2.6 percent from FY 2014.

• $46 billion in collected duties, taxes, and fees – the highest amount collected in the last five years.

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ACE Progress

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Priorities for 2016 • Complete actions to divest ACS • Complete mandatory transition to ACE

– Complete development of remaining core processing capabilities and deploy in ACE

– Complete all PGA integration requirements for the 22 agencies with data requirements at time of entry/entry summary

– Full transition of legacy AESDirect to ACE by May 20, 2016

• Continue to transition users to ACE – Extensive outreach to filers continues in order to transition

more filers to ACE prior to mandatory dates

• Implement necessary trade legislation per the February 2016 Trade Facilitation & Trade Enforcement Act (TFTEA)

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Key Dates for ACE Transition

ACE Filing Status: Entry/Entry Summary

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ACE System Performance • Our ACE overall system availability of 97.3% (continuous

365 day period as of 2/2016) exceeds the Key Performance Parameter threshold of 97%.

• Transparency on system issues is being provided via daily trade calls and listings of issues are posted to CBP.gov/ace.

• Application dynamics have been implemented in the ACE system and metrics reporting is currently underway.

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Partner Government Agencies in ACE

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Status of PGAs with Entry/Entry Summary Requirements (4/11/16)

• Paper will not will be required.

• ACE will automatically process and allocate quota.

• Quota module is currently in CERT environment for Trade testing, focusing on controlled opening moment scenarios.

ACE Quota Highlights

Key Dates for ACE Transition

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Highlights for Post Release Processing

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Protest • Protest Filer Account for trade to submit protests to CBP and view protests that have been submitted • Integrated with DIS to allow for documents to be uploaded and attached to a protest • Will allow for seamless movement of work • Will send electronic notifications to the protest filer based on specified protest events (Protest Added, Amended,

Denied, etc.) • Will allow for broader trade participation

Liquidation • Entry Summaries will no longer display liquidated when the liquidation date is in the future • Liquidations will process weekly, Entry Summaries will liquidate every Friday • Liquidations will post weekly to the electronic bulletin on cbp.gov • Suspensions and extensions

Reconciliation • Reconcilable issues and timeframes will remain the same • All data will be submitted electronically, including data from the line item data spreadsheet • Only reconciled amounts will need to be submitted, Trade will no longer be required to submit original amounts

Drawback • Allow for electronic submission of entire Drawback Package via ABI transmission or DIS upload • Filings allowed at the 10 digit HTS line level • System Validations will be implemented • Tighter integration with post release processes • Improve system controls for preventing over refunding

HTS • HTS database will migration to ACE • Draft CATAIR of HTS ACE ABI Query will be posted by end of April

Statements • All Statements will be processed in ACE • Statement view for Trade will continue to be via Report

Post Core Enhancements • The ACE Business Office will work with CBP policy offices

to identify priority areas for automation.

• As priorities are established, pre-existing requirements that are currently in the backlog will be evaluated in light of the policy offices vision for that functionality.

• Resources for new development will continue to be limited, and requirements will be determined based on agency priorities.

• CBP will continue to maintain the requirements backlog and leverage trade to map requirements for our future automation priorities.

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Benefits of Filing with ACE

Upcoming ACE Outreach Events

• Border Interagency Executive Council (BIEC) Outreach to Southern Border – May/June 2016

– The Office of Trade Relations will be sponsoring outreach with ports located along the southern border to address low filing rates experienced at these locations

ACE Resources Outreach Stay up to date on community events and webinars.

www.cbp.gov/aceoutreach

Training Find user guides and online courses on the ACE Portal and system functions.

www.cbp.gov/trade/ace/training-and-reference-guides

E-mail Alerts Receive automatic updates on ACE on: system outages, new capabilities, technical documentation and more.

www.apps.cbp.gov/csms/csms

FAQs

Answers to some of our most frequent questions on: ACE Portal, manifest filings, cargo release, and more.

www.cbp.gov/trade/automated/ace-faq

Questions For non-technical inquiries please submit questions to:

askace@cbp.dhs.gov

Support For technical inquiries please call 866-530-4172.

17 www.cbp.gov/ace

QUESTIONS? askace@cbp.dhs.gov

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Back-Up Slides

Getting Ready for ACE As the next mandatory date approaches, make sure to take all necessary steps.

Software Vendors and Self Filers

Software configured to CATAIR guidelines on CBP.gov

Software configured to supplemental PGA CATAIR guidelines on CBP.gov

All capabilities tested in CERT

Clients informed of software updates and aware of ACE transition

Brokers

Software package from vendor is updated for ACE transition

Entries have been filed in ACE Cargo Release successfully

Entry Summaries have been filed in ACE successfully

Confirm software vendor has successfully tested all capabilities in CERT

Clients informed of software updates and aware of ACE transition

Importers

Broker has updated software

Broker can confirm that entries and entry summaries have been filed in ACE successfully (including new data elements for ACE entries/cargo release: Buyer Name and Address, Buyer EIN, Seller Name and Address, and Manufacturer/Supplier Name and Address)

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Additional Talking Points

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ACE What to Expect Now

Sandy Coty, OHL International Lenny Feldman, Sandler, Travis &

Rosenberg, P.A.

State of ACE

• In-Bond Fix o Permit to Transfer to a CFS in same district but different port code

o Unlading port and entry port different but in same district

o Hub entries

o Port association and port clusters

• Interim Process o Drug Enforcement Administration (DEA)

o National Marine Fisheries Service (NMFS)

o Environmental Protections Agency (EPA)

o Alcohol Tobacco & Firearms and Explosives (ATF)

o Fish and Wild Life Service (FWS

State of ACE • “Admissible” - “Under CBP Review”

• Bill Holds in ACE

• Report to ABI Rep and Request a Trouble Ticket – CBP

needs visibility

• Border Clearance Challenges

• System Down Time Guidelines (ACE/DIS)

• General Order - Hand Carry – House Bill

• FTZ – PGA’s

• HTS Flags

o F&W – FW2 – Must Certify Disclaimer

• Apparel, Footwear, Jewelry, US Goods, Luggage

o CPSC - Asking for Intended Use Code

• DIS – Unsolicited vs. Unknown

Exam

• Designated Exam Port Code - SE 11 Record

• Elected Exam Site: (FIRMS) Filer’s preferred CES

location if cargo needs to be examined (optional)

• Only available if transmitting ACE Cargo Release 2

step?

“DSGNTD EXAM SITE NOT ALLOWED - NOT RLF”

Rail Entry Processing • CBP regulations require that all cargo arriving on non-split conveyances not

be entered with cargo from another non-split conveyance. This applies to the importing conveyance, and not, for example, to ships arriving into a foreign country such as Canada, and then split onto multiple trains

• For CBP purposes, each train is a unique consist, and cargo from one such train may not be entered on the same entry with cargo from another such train (trains are not considered to be split BOL’s under the regulations)

• ACE Cargo Release was coded to enforce this, and consequently any entry that has bills of lading from more than one importing conveyance will be rejected

• Broker Download –

• Trip Number and Conveyance details

• Consist = Manifest

“U” Update

“U” Update

Correct manifest /bill related

information including split

indicator

Update Port of entry

(Timeframe?)

Up to 15 days from

Arrival/Release

Entry

Summary on

File

Delete Summary

– Update Port

Code in Cargo

Release – Add

Summary

Update Port code

in Cargo Release

-

Yes

No

ACE Cargo Release Business Process Document 6.2. Correcting Entries What data elements can be updated? SE10,11,15,16

After

15

days?

Correction

after initial

submission

but before

arrival

Prior to Arrival,

No Document

Review, No

Intensive, No

Hold

Document

Review, CBP

Review Intensive

or other Hold

Correction

after

arrival but

before

release

Correction

after both

Arrival

and

Release

“R” Replace action for ACE

Cargo Release accepts for

validation and processing

sent to targeting and

selectivity

CBP turns the “R”

Replace into a

“Correction request that

requires manual CBP

user adjudication

“Correction Under

Review”

Approved

Rejected No more

“R”

Replace

“No

correction

after

arrival

and

Release”

Admissibility

Further changes

must be made by

via entry summary

Cancel ->

Refile

“R” Replace

FDA Replace up to 5 days prior to Arrival date sent to FDA If FDA system Rejection “Bucket 2” can replace same rule apply Can not Correct Entry Number or Importer of Record

PGA Correction – Future

• Allows submission of PGA corrections apart from the

entry

• Ability to submit a full replace

• Ability to submit by agency

• Future Vision: Only actual changed data submitted

PGA Correction – Future

• PGA standalone corrections may be submitted up until

10 days after release

• Corrections to CBP entry will affect the whole entry as it

does today

• Add, Replace, Delete

• If less than full replace, only those agencies submitted

will have their rules re-run

ACE/ACE Cancellation

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ACE Cargo Release Business Rules 6.1. Cancellation of Entries

Quota

• Deploying in late July

• No paper will be required in ACE (?)

• Conducting controlled opening moment scenarios

o Pre-file as per § 132.12 Procedure on opening of potentially

filled quotas (?)

• Presentation Date

o Date Entry summary was transmitted

o Date goods have arrived. Note: Quota will be using the same

Arrival date as Cargo Release

o Date in which payment is scheduled or paid

• UC (Status Response) quota conditions

Recordkeeping

• ACE Recordkeeping Policy

Data required for CBP Form 7501, CBP Form 3461, CBP Form 214

and CBP Form 7512 for Transportation Entries is transmitted

electronically in discrete data sets, not in paper form,

• Once transmitted and accepted by CBP, that data is stored by CBP.

The filer’s electronic transmission of that data through ABI fulfills the

filer’s entry and FTZ admissions obligation for these particular data

sets. However, the filer must maintain, as is currently required, the

underlying backup or supporting information from which the

submitted information is derived.

o Versions

o Accessibility

TIB

• New TIB Flag

o An indication that the Temporary Importation Under Bond (TIB)

conforms to the conditions required for this type of Entry

Summary.

o Y = “I certify that the articles are to be used according to the

terms, conditions and provisos of the HTS subheading as

declared herein and applies to the articles entered, that the

articles will not be used for any other use and that the articles

are not imported for sale or sale upon approval. I declare that the

articles will be exported or destroyed within the applicable 6-

month or 1-year period from the date of importation, unless

extended.”

TIB • Submit a paper copy of the CBPF 3461 or 7501 to be physically

ANNOTATED for either: (TIB’s releasing without Document Review)

o Export Exam Required, or

o Export Exam Waived

• Upon filing the associated Entry Summary, provide a copy of the

ANNOTATED CBPF 3461 or 7501 through the Document Image System

(DIS). Designate “CBP” as the Agency Code, and CBPF_3461” as the

Official Document Name/Description

• Interim measures for the processing of Temporary Importation Bond (TIB)

Entry and Entry Summary type 23

http://www.cbp.gov/trade/automated/technical/news

• Future Export Exam Required / Waived will be automated

• Future “Close” TIB electronically

Post Release

• Reconciliation

• Drawback

• Liquidation 1 Year – “Deemed Liquidation”

• Protest Portal

Legal, Regulatory & Policy Considerations

LAW & POLICY

In the Beginning…there was NCAP • 19 U.S.C. §1411. National Customs Automation Program

• Automated, electronic system for processing commercial

importations

• International Trade Data System (ITDS) – eliminate redundant

information requirements to efficiently regulate the flow of commerce

and to effectively enforce laws and regulations….

• Consultation with private sector stakeholders, including COAC, in

developing uniform data submission requirements, procedures, and

schedules for the ITDS

• Interagency Steering Committee shall periodically review the data

elements in order to update the standard set of data elements, as

necessary

NCAP - Forging New Ground in

Automation Existing Planned

Entry Filing and Status of Protests

Entry Summary Remote Location Filing

Invoice Information Import Activity Summary Statements and

Reconciliation

Manifest Information Filing Bonds

Paying Duties, Taxes and Fees Penalty Process

Liquidation and Reliquidation Status Filing Drawback Claims, Records or

Entries

Selection of High Risk Entries for

Examination (Selectivity)

Other Components to Carry Out CBP

Goals

Fast Forward…E.O. 13659

Streamlining the Export/Import Process

• Increase efforts to complete the development of efficient and cost-

effective trade processing such as ITDS to modernize and simplify

how agencies interact with traders…while reducing unnecessary

procedural requirements that add costs to both agencies and

industry…and promote new opportunities for trade facilitation.

• Establish the Border Interagency Executive Council (BIEC) to

develop policies and processes to enhance coordination across

customs, transport security, health and safety…to measurably

improve supply chain processes and improve identification of illicit

shipments.

Recordkeeping : 19 CFR 163 –

(a)(1)(A) List

of Records Required for the Entry of Merchandise

• Customs has tried to identify all the presently required entry

information or records on the following list. However, as

automated programs and new procedures are introduced, these

may change.

• The following records (including any statement, declaration,

document, or electronically generated or machine readable data) are

required by law or regulation for the entry of merchandise and are

required to be maintained and produced to Customs upon

reasonable demand.

• Information may be submitted to Customs at the time of entry in a

Customs authorized electronic or paper format.

A Regulatory Fix?

• ACE Filings for Electronic Entry/Entry Summary (Cargo Release

and Related Entry). Vol. 80, No. 197, Federal Register, October 13,

2015.

o “ACE will be a CBP-authorized EDI System. ACS is being

phased out.”

• ACE as the Sole CBP-Authorized Electronic Data Interchange (EDI)

Systems for Processing Certain Electronic Entry and Entry

Summary Filings

o “ACE will be the sole EDI system authorized by CBP for

processing certain electronic entry and entry summary filings.”

Amends regulations to allow filers, alternatively, to submit

electronic equivalent of CBP Forms, including 28, 29, 247, 434,

3229, 3289, 3299, 3311, 3461, 4315, 4455, 4457, 4647, 7501,

7533 and 7552.

CBP Recordkeeping Policy

• CBP will not request filer to produce the data (previously 7501,

3461, 214 or 7512) previously transmitted to and retained by

CBP...unless it has a need for such records.

• Filer may retransmit or otherwise provide the data electronically or

reproduce the entry/entry summary data using an ACE report.

• Filer must maintain supporting documentation used to create the

data transmitted to CBP.

• Original documents must be retained by entry filer and produced to

CBP upon demand even if digital copy of original was previously

transmitted electronically to CBP.

• Entry data and information previously presented to and retained by

CBP is not subject to a recordkeeping penalty for non-production if

such data or information is subsequently requested.

• Filers must retain all versions of entries. CBP will no require the

production of the non-final version of a data submission unless it is

necessary for analytical, statistical, investigative or other purposes.

Hybrid Rule

• Proposal to eliminate hybrid filing allowing for forms electronically

via EDI, by paper or a combination of both (hybrid).

• Would require importers to choose between submitting entirely

electronically or by paper, except in limited circumstances.

• Considerations:

o Implementation costs (IT, training and compliance)

o Net benefits (processing enhancements and qualitative/quantitative benefits)

o Time to comply

o Regulatory flexibilities/phased in approach

o Documentation and data exceptions

Customs Brokers & PGAs?

• 19 U.S.C. §1484:

IOR to make entry with information enabling CBP and PGAs to

determine whether merchandise may be released from CBP

custody and file an entry summary with information necessary

for CBP to determine whether any other applicable requirement

of law is set.

• Considerations:

o How much data is necessary? Data Creep

o When is the data needed? Policy Creep

PGAs & Broker Liability

• Standard: Responsible Supervision and Control

• Inform Importer of Necessary Data

• Obtain Necessary Data from Importer

• Provide Necessary Data to CBP

• What if….

o Don’t’ Inform?

o Don’t Obtain?

o Don’t Provide?

PGAs & Section 321

19 CFR §10.151 and §10.153 • Trade Facilitation & Trade Enforcement Act – Section

901, De Minimis Value. $800 shipments exempt form

customs duties and taxes and from certain entry

documentation requirements as appropriate.

• The Past: Manifest level, targeting. Limited, if any, interest.

• The Present: New policy due to increased value?

• The Future: New regulations?

• Current regulatory exclusions: o alcoholic beverages

o perfume containing alcohol

o cigars and cigarettes

o subject to absolute or tariff rate quota

Other “Hot” Issues

• Protests – Place of filing, DOJ honoring protests filed

other than at POE. 19 U.S.C. §1514

• Liquidation – Electronic bulletin notices of liquidation with

Internet access; One year “deemed” liquidated. 19

U.S.C. §1504

• Quota – Quota priority status and presentation

determined at time of presentation of entry summary. 19

C.F.R. §132.11

• Split shipments – May be accommodated on a single

conveyance, accepted by carrier in exporting country

under one B/L or AWB, and intended to arrive in U.S. as

single shipment. 19 C.F.R. §141.57.

• Beyond “Core” ACE – Simplified Summary/Process;

Broker Reporting & Importer Vetting; Rulings, Decisions

& Petitions

• The Past: Manifest level, targeting. Limited, if any, interest.

• The Present: New policy due to increased value?

• The Future: New regulations?

• Current exclusions: o alcoholic beverages,

o perfume containing alcohol

o cigars and cigarettes

o subject to absolute or tariff rate quota

THANK YOU!