International Trade Club of Chicago Merit Tremper Merit Trade Consulting Services LLC October 23, 2015

ACE – Automated Commercial Enviroment What does ACE mean to me as an Importer/Exporter ACE Portal - Import/Export Ace Implementation Timeline Entry Summary (7501) / Cargo Release (3461) PGA – Participating Government Agencies Delays / Holds/ Messages

What does ACE mean to me as an Importer/Exporter ? Automated Commercial System (ACS): CBP’s legacy system for filing import data electronically. ACS is used to electronically track, control, and process goods imported into the United States. CBP is scheduled to decommission all core trade processing capabilities in ACS by 2016. The Automated Commercial Environment (ACE) is a U.S. Customs and Border Protection (CBP) system designed to facilitate legitimate trade while enhancing border security. ACE will improve collection, sharing, and processing of information submitted to CBP and government agencies. Working with ITDS the International Trade Data System (A Partnership of Government Agencies Committed to the Modernization and Facilitation of International Trade) Customs and Border Protection (CBP) is developing one window for all Import and Export information. CBP and all Participating Government Agencies on will be merged into this window. So as an Importer or Exporter what does this mean to you?

What does ACE mean to me as an Importer/Exporter ? Good Benefits More visibility on your shipments in a portal you can access. Report functionality on Import and Exports shipments Better visibility on who is filing exports on your IRS/EIN number. AES Direct Filings are now being filed in the ACE portal. No more FCC info needed on Imports. Additional Issues / Things to think about Additional Elements needed on certain PGAs

ACE Portal - Import/Export

ACE Portal - Import/Export Antidumping Queries

ACE Portal - Import/Export Reports

ACE Portal - Import/Export Reports

ACE Implementation Timeline November 1, 2015 Use of ACE is allowed and encouraged for electronic entry and corresponding entry summary filings for entry types 01, 11, 03, 51, and 52 with PGA data. February 28, 2016 ACE must be used and ACS will no longer be available for filing of all electronic entries and associated entry summaries. In addition, electronic FDA, NHTSA, APHIS (Lacey) data must be filed in ACE and ACS will no longer be available. July 2016 Upon publication of the Final Rule, ACE must be used for filing AMS, APHIS Core, ATF, CDC, DCMA, DDTC, DEA E&C, EPA, FSIS, FWS, NMFS and TTB data.

ACE Implementation Timeline

ACE: Mandatory February 28th Filers will only be permitted to file in ACE and no longer permitted to file in the Automated Commercial System (ACS) all electronic entries and associated entry summaries. In addition, electronic data for the following agencies must be filed in ACE: Food and Drug Administration (FDA) National Highway Traffic Safety Administration (NHTSA) Animal and Plant Health Inspection Service (APHIS) for Lacey Act transactions

Paperless World The current Customs Form 7501 will no longer exist. The current Customs Form 3461 will no longer exist. What does this mean? Customs and Border Protection is moving into a Paperless World. All holds and releases of cargo will be done with Automation(The act of implementing the control of equipment with advanced technology; usually involving electronic hardware). We see this with the implimentation of the CEEs(Centers of Excellence and Expertise. How will this effect you as an Importer/Exporter?

Paperless World 7501 Form can and will be still printed for you as back up on your duty calculations. The 7501 Form will no longer be submitted to CBP. 3461 Form is no longer needed for CBP but it will still be needed as back up for non automated facilities such as the CES(Customs Exam Stations) and the CFS (Container Freight Stations) Post Summary Corrections(PSC), Census Warnings. Protests, Petitions etc…. Document Imaging System(DIS)

PGA – Participating Government Agencies

CBP and 15 PGAs identified with requirements that must be incorporated into ACE in order to meet the deadline date for mandatory filing of entry and entry summaries Department Agency Department of Agriculture Agricultural Marketing Service (AMS) Food Safety and Inspection Service (FSIS) Animal and Plant Health Inspection Service (APHIS) Department of Commerce National Marine Fisheries Service (NMFS) Enforcement and Compliance (E&C) Department of Defense Defense Contracts Management Agency (DCMA) Department of Health & Human Services Centers for Disease Control and Prevention (CDC) Food and Drug Administration (FDA) Department of Homeland Security U.S. Customs and Border Protection (CBP) Department of the Interior Fish and Wildlife Service (FWS) Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Drug Enforcement Administration (DEA) Department of State Directorate of Defense Trade Controls (DDTC) Department of Transportation National Highway Traffic Safety Administration (NHTSA) Department of Treasury Alcohol and Tobacco Tax and Trade (TTB) Independent Agencies Environmental Protection Agency (EPA)

PGA Requirements Now is the time to work with your Customs Broker. Please do not wait till February. See what new requirements are out there on your commodity. Many forms you sent in are now all electronic. Some you sent pre entry, some you sent at the time of entry and some the Customs Broker has never seen that you sent post entry. Make the time to sit with the Customs Broker and review this. There are also some new requirements that are being asked for. Especially by FDA.

Delays / Holds/ Messages Only a couple Government Agencies have HOLD capabilities. With the new ACE Environment other government agencies can ask CBP to put holds for them. What does this mean? Examination, Sampling, Testing…… Work with your Customs Broker to get all the info for the Government Agency requesting this info and use the DIS system when needed to submit the missing paperwork/info electronically and your holds/delays should be minimal.

Questions?