Port of Chicago March 18, 2015 ACE Status Update

In February 2014, the President signed an Executive Order mandating completion of the Single Window and use by all agencies will a role in trade processing by the end of 2016. The Single Window isn’t a new concept. There are 47 agencies who play a role in the facilitation of cargo. Each agency has it’s own processes, forms and systems. The Single Window is the concept of creating one system through which the trade will submit their data and the Government will make release determinations. ACE is being built to be that Single Window. The trade will submit the data needed by all agencies once, and ACE will take that data, pull out the data required by each agency and push that data to the agency. Benefits are great for both Government and industry – less paper, faster decision making, greater risk assessment capabilities.

Automated Systems Overview Automated Commercial System ACS is the legacy CBP trade processing system that CBP is working to decommission and replace Automated Commercial Environment ACE is being built to replace ACS by the end of 2016 and become the Single Window through which the trade will file and the government will process data related to imports and exports

Automated Commercial Environment The key to CBP’s trade transformation initiatives: Modernizes commercial trade processing systems with features designed to consolidate and automate border processing Integrates with other Partner Government Agencies (PGAs) with border presence Provides a single centralized access point to connect CBP,PGAs, and the trade community Forms backbone of CBP trade processing and risk assessment capability Facilitates collection and distribution of standard electronic import and export data required by all Federal agencies via the International Trade Data System (ITDS) initiative

Begin the Transition Now ACE Plan Forward CBP is using the Agile software development methodology to complete development of core trade processing features in ACE and decommission the corresponding capabilities in legacy systems by the end of 2016. Allows building and fielding capabilities more quickly Incorporates user input throughout the process Seven deployments of new features planned A B C D E F G 2013 2016 Begin the Transition Now www.cbp.gov/acedates Software Providers

ACE Mandatory Dates Mandatory Date Explanation CBP has established three important dates that guide the trade community’s transition into ACE. Mandatory Date Explanation Electronic imp/exp manifests, for all modes of transport, must be filed in ACE Import Manifest: Impact is for Air Export Manifest: Cannot mandate filing in ACE until regulations are published Current processes for export manifest will continue to be supported, but as of 5/1/15, all ELECTRONIC manifests must be filed in ACE All electronic entries and entry summaries must be filed in ACE Includes Partner Government Agency (PGA) requirements at time of entry or entry summary Paper filings allowed today, e.g., non-ABI, will continue to be supported All remaining electronic portions of cargo process must be done in ACE Protest, Liquidation, etc. CBP is developing and delivering remaining core trade processing capabilities in ACE and will decommission the corresponding capabilities in legacy systems by the end of calendar year 2016. As part of the plan to complete ACE by 2016, CBP has established three mandatory use dates: May 1, 2015: Mandatory use of ACE for all electronic manifest filings Export: While the capability to file electronic export manifest will be available in the short term, electronic export manifests in ACE will not be mandated until such point as regulations are in place to require electronic export manifest filing. Import: Import manifest is already mandated in ACE for truck, ocean and rail shipments. The capability for air manifest was deployed to production on January 3, 2015, and air manifests will be mandated in ACE on May 1, 2015. November 1, 2015: Mandatory use of ACE for all electronic cargo release and related entry summary filings, including any Partner Government Agency data required at time of entry or entry summary October 1, 2016 - Mandatory use of ACE for all remaining electronic portions of the CBP cargo process, including liquidation, protest, drawback, etc. This schedule is aggressive. We’ve been communicating these dates for over a year, and are working closely with filers to set onboarding strategies.

Key Dates for ACE Transition January 2015 Electronic import manifest for air and export manifest for air/ocean/rail May 1, 2015 ACE mandatory for all electronic manifest filings 3 months away July 2015 All entry types delivered November 1, 2015 ACE mandatory for all electronic cargo release and related entry summary filing 9 months away October 1, 2016 ACE mandatory for all remaining electronic portions of the CBP cargo process 20 months away July 2016 All remaining core trade processing capabilities delivered ACE Mandatory Dates Deployment of Key ACE Capabilities 2016 2014 2015 We are delivering key capabilities in advance of the associated mandatory filing deadlines. May 1, 2015 Mandatory Filing of Electronic Manifests – 3 months away CBP encourages adoption of the air manifest changes as early as possible, as this provides the advantage of confirmed compliance ahead of the deadline, since the outlined changes are compatible with current Air Manifest System (AMS) processing. Trade testing in the ACE Certification Environment for Air AMS is available. After the January 3, 2015 deployment of air manifest, the current Automated Commercial System (ACS) AMS Certification region is no longer available. The current air manifest technical standards and documentation are located on CBP.gov. For details on the updated header format, please access the published Appendix D posted to CBP.gov. For details on message set changes, please reference the Update on Air Manifest Changes on CBP.gov. Nov 1, 2015 Mandatory Filing of Electronic Entry and Entry Summaries – 9 months away CBP has committed to publishing draft Implementation Guides for all November 1, 2015 mandated capabilities by January 2015. CBP is not looking to make huge changes to the current entry/entry summary filing process, as our priority is to migrate existing capabilities from ACS to ACE. CBP has committed to having working code in the Certification data environment by the end of the Increment in which the functionality is built. ACS will no longer accept entries and entry summaries filed as of November 1, 2015.

ACE Progress Development of the Single Window has been underway for some time. CBP is implementing the plan to complete core trade processing in ACE and decommission the corresponding capabilities in ACS by the end of 2016. ACE is the technology platform through which the Single Window will be realized. More than 90% of Import Manifest functionality is now in ACE. All electronic truck, ocean and rail manifests must already be filed in ACE. Air import manifest was deployed to production on January 3, 2015. Parallel processing will take place until all air manifests must be filed in ACE on May 1, 2015. More than 70% of core Cargo Release processing capabilities have been delivered in ACE. ACE Cargo Release processing for certain air, rail and sea shipments is available for use. The January 3, 2015 deployment expanded what is eligible for ACE Cargo Release to include Antidumping/Countervailing duty entries. Following the January 3, 2015 deployment, ACE Cargo Release is also available for truck shipments. More than 60% of Post Release capabilities are in ACE. Entry types 01, 03, and 11 can be filed in ACE, representing almost 99% of entry summaries filed. Entry summary validations, identified as a top priority by brokers, have been significantly expanded in ACE. More than 60% of export processing functionality has been deployed in ACE. The Automated Export System (AES) is now part of the ACE platform. Pending the issuance of a Federal Register Notice, a pilot will be initiated for electronic air export manifest capabilities. More than 70% of Single Window integration capabilities have been deployed in ACE. We’ve delivered core technical foundation for the Partner Government Agencies (PGAs), and are now focused on integrating PGAs in ACE. Four PGAs are conducting PGA Message Set pilots.

ACE: EDI v Portal Filing data with ACE: Submit import and export data in accordance with ACE technical standards through Electronic Data Interchange (EDI) Once data is submitted to CBP, use the ACE Portal to: Evaluate compliance and monitor daily operations  Access to more than 400 reports Submit truck import manifests Monitor data on file with CBP

Getting Started with ACE New to electronic filing? Already an established filer? Identify your method of connection: Use an approved software provider Contract with a service provider Develop software in-house Set up connection: Fill out an submit a Letter of Intent Coordinate an assigned client representative Confirm with your software provider, broker or service center about their ability to file cargo release, entry summary or manifest transactions to ACE Contact your client representative and express your interest to file through ACE Software Providers The time to start transitioning to ACE is now. Don’t wait until the last minute. Mandatory dates are set. Start using ACE now and be ready when those dates arrive. Importers: If your entry summaries aren’t being filed in ACE, talk to your broker about WHY they’re not filed in ACE, and WHEN the broker will file your entry summaries in ACE. Brokers: If your software vendor hasn’t provided software for ACE filing, find out WHEN they will have the software in place to support ACE filing. 60% of vendors ARE certified to file in ACE. If you transition now, we have the time and bandwidth to work with you, to address any issues before filing is mandatory. This is the benefit of starting now. If you wait until October 2015, we may not have this bandwidth. 75% Certified for Entry Summary www.cbp.gov/trade/automated/getting-started

Current Benefits of Filing Entry Data Through ACE Benefits of ACE Cargo Release Entry: Eliminate submitting paper Form 3461 (entry document) File shipment data prior to carrier notifying CBP of departure Receive status updates prior to cargo arrival No need to submit corrections through a paper form Make corrections to cargo entry data electronically Benefits of ACE Entry Summary: Eliminate submitting Form 7501 (paper entry summaries) Request ACE cargo entry certification from ACE entry summary File Antidumping/Countervailing Duty entry summaries (Entry Type 03) using Remote Location Filing (RLF) Process Census warning and overrides electronically through ACE Transmit Post Summary Corrections (PSC) electronically, receive refunds quicker Gain access to an expanded AD/CVD query Obtain more information from the ACE Entry Summary query

CBP.gov/ace Overview 2 1 4 3 Left hand navigation: Getting Started Technical Documentation, such as CATAIR, IGs, etc. ACE Features – links to more detail on ACE Middle column – updated with latest news/headlines Gray box below News column (pictured): Always on the main page Links to ACEopedia, Schedule, Events Calendar Right hand navigation: Portal Login Page CSMS ACE Outreach Events TSN AskACE@cbp.dhs.gov 2 4 1 3

Stay up to date on ACE Cargo Systems Messaging Service (CSMS) Automatically receive notices to your inbox Searchable database, in case you delete or miss a message www.cbp.gov/ace http://apps.cbp.gov/csms CSMS keeps you updated on the latest ACE: System outages Upcoming webinars or port visits Deployment of new capabilities Updates to technical documentation Partner Government Agency (PGA) requests

ACE Resources Technical Support For technical support with the ACE system, functions or data, please contact: General Support For non-technical inquiries please submit questions to: News & Training For non-technical inquiries please submit questions to: ace.support@cbp.dhs.gov (866) 530-4172 askace@cbp.dhs.gov cbp.gov/aceoutreach cbp.gov/trade/ace/training-and-reference-guides apps.cbp.gov/csms/csms

Questions? askace@cbp.dhs.gov www.cbp.gov/trade/automated/ace-faq May 1, 2015 Mandated use of ACE for all electronic manifest filings. November 1, 2015 Mandated use of ACE for electronic Cargo Release and associated Entry Summary. October 1, 2016 Mandated use of ACE for all remaining electronic portions of the CBP cargo process.