ACE – The Important Points Going Forward Cindy Allen – NCBFAA Educational Institute Director

Agenda ACE – A History & Background Roll Out Schedule ACE – How and What Can Be Filed? Differences in ACS and ACE Points to Remember New CBP Documents What’s Up Next? Other Concerns

ACE- A History Automated Commercial Environment What is the TSN and Why it is Important History Pre 9/11 After 9/11 Participants Developments Changing Face of TSN

The Different “ACE’s” CBP ACE System ACE: Portal ACE: E-Truck Manifest ACE: Processing System Different Development Teams Entry Summary and Account Revenue Release Multi-Modal Manifest Accounts / Legal Policy

What Can Be Filed? Entry Types 01 and 11 can now be processed in ACE Except for the following: Must be scheduled for a statement No Lacey data No FDA or DOT data can be included if the cargo was released under one of the border release systems (BRASS, FAST, Rail Line Release) RLF is not included in the initial deployment, testing being completed now

Future ACE Releases M1 – Vessel & Rail Manifest M2 – Air Manifest ESAR A2.3 “03” Entry Types All Entry Types Release All OGA’s and ITDS Reconciliation, Export, Drawback, E-Bond

Differences in ACS & ACE: Documents Required New Mind Set by Brokers New Process Separates Statement & Docs Required Daily Statement now serves several purposes Docs Required Payment Checks and Balances Internally ABI Message Sent Separately Up to 30 Days After Release, 5 Days to Respond Document Transmittal Sheet Receive Message Sent by CBP Similar to RLF Docs Required Message Training Needs Fundamental change in flow of entries

Differences in ACS & ACE: Census Warnings Filer may enter preemptive Census Warning Override code at the transmission of the ACE Entry Summary Census Warnings will: No longer require the submission of paper Entry Summary documentation Automatically generate an Entry Summary Reject Status Filer may correct entry summary data by retransmitting Census Warning Override codes can be transmitted via ABI

Differences in ACS and ACE: Entry Summary Rejects No More “Pink Reject Sheets” CBP users will trigger outbound ABI reject messages Filers have two business days to respond Paper responses can be accompanied by a reject template downloadable from CBP.gov See Entry Summary Business Process Document ACE rejects will be utilized in conjunction with an ACS reject to inactivate an ACE Entry Summary

Declarations in ACE Portal Blanket declarations can be created in ACE to support both ACS and ACE entry summaries and can be viewed nationally by CBP Type of Declarations Affidavit of Manufacturer Importer Certifying Statement North American Free Trade Agreement (NAFTA) Certificate of Origin Non-reimbursement Blanket Statement (Anti-Dumping / Countervailing Duty (AD/CVD)) Brokers will need account access to the Importer’s Account, until end of year.

Edit LITE: Still a Concern Increase in Liability Instead of up front edit checks – this becomes a post entry audit function for CBP Broker Internal Review Process One Entry Summary Transmission One Step vs. Two Step Process Software Becomes Critical Training for Employees Technical or CATAIR Understanding by Operational Staff Process Understanding by IT

Decide Your Deployment Schedule Two Sets of Systems, Two Sets of Process, Two Sets of Headaches System Determined or Manual Process? Changes After the Fact? 01 Type Entry Changing to 03 Type Entry Training Employees for the Overlap Importer Awareness of the two Systems Information in ACE Portal Abilities between the two system Inconsistencies Between the Two Systems

Interaction With Clients With Other Parties – ACE Accounts With CBP Data on ACE Portals Additional Contact With CBP Directly With Other Parties – ACE Accounts Surety Companies Carriers Transportation Firms Warehouse / CFS Locations With CBP Much More Comprehensive Picture Brokers Importers

Problem Contingency Plans Work with CBP on Local level to develop plans NCBFAA is working with HQ level Once developed share those plans with other NCBFAA member associations Develop plans internally Get your IT and Operations people at the same table Go through the release scope Develop actions from each perspective Communication, Communication, Communication, Communication

Business Aspect of Change This is much more than a system change We need to look at Internal Processes Employee Training System and Equipment Need Client Interaction and Education

New CBP Resource ACE Entry Summary Filing Instructions Developed at the request of Trade More robust than the existing CBP Form 7501 instructions Only pertains to transmitting data elements needed for type 01 and 11 entry summaries Contains links within the document to more detailed sources of information impacting summary filing

New CBP Resource Business Rules and Process Document Internal (CBP) and external (trade) versions addressing processing from each perspective Process flow and business rules surrounding the ACE entry summary Should serve to demystify what is occurring systemically in ACE pertaining to entry summary Provides transparency

What is Coming Next? Post Summary Correction No Changes After Time of Release Analysis of Current Retransmissions One Step vs. Two Step Client Visibility via ACE Portal System Edit, Checks, Stops Visibility to CBP Reason Codes Successive Changes Importer or Broker Issues Compliance Measurements Results

What is Coming Next? Post Summary Correction Corrective Process Electronic vs. Manual Process Recordkeeping Issues – Keeping all versions Denial by CBP – Affect on Funds Paid Approval - Refunds of Funds Paid Training Needs Employees Clients System / Equipment Needs Additional Capabilities Tracking / Flagging Abilities

What is Coming Next? Imaging More Portal Reports In-Bond Revisions Abilities of System Storage Needs Training Linking to Shipments More Portal Reports In-Bond Revisions Regulatory Change Automation Limitations

Other Concerns CBP is out of $$$ Current TSN – November 5th NCBFAA White Paper Process Flow Chart Current TSN – November 5th Gathering of Trade Representatives Prioritization of Functionality Result will be a Development Plan for CBP

Have a Great Day! Cindy Allen NCBFAA Educational Institute Director Thank You! Have a Great Day! Cindy Allen NCBFAA Educational Institute Director