Los Angeles Customs Brokers & Freight Forwarders Association (LACBFFA) ACE Webinar ACE Cargo Release & Future ACE Development September 30, 2014 Welcome and Introductions Mark Hirzel LACBFFA President

Introductions - Speakers Vincent Iacopella Chief Operating Officer The Janel Group/Janel World Trade Ltd. (LACBFFA Chair and Legislative Chair) Crystal Adair Vice President, Customs Services DB Schenker (LACBFFA Board Member and Membership Chair) Sandra Langford-Coty Vice President, Customs Brokerage OHL International (LACBFFA Board Member and Marketing and Communications Chair)

Mandatory Dates for ACE Transition Submit questions during the webinar to: la.cbffa@verizon.net

ACE Cargo Release

ACE Cargo Release Benefits Enhances cargo security Allows CBP and the trade to identify and address potential risks earlier in the process Does not provide results until “Wheels-Up” (Bill match) Streamlines the release of cargo Earlier risk assessment decisions Earlier and more detailed messaging Reduces transaction costs Greater predictability; allows importers to make logistical arrangements in advance of arrival Reduces “exceptions” needing special processing after arrival Opportunity to streamline broker operations processes due to streamlined messaging and data submission 5 5

ACE Cargo Release Data Simplified entry streamlines the data elements on CBP’s 3461 entry form This promotes the concept of “the owner of the data knows the data best,” resulting in more accurate information After the streamlining, the following simplified entry data set replaces the CBP 3461:

ACE Cargo Release Requirements Only Air, Ocean, Rail and Truck modes of transportation Only Type 01 and 11 consumption entries Only a continuous bond and an electronically-filed single transaction bond may be used to support the entry filing at this time; If the port of entry is different from the port of unlading, no release will be issued unless an In-Bond is found to be associated with the bill of lading in the CBP system. If an In-Bond number is provided in the entry submission, the Planned Port of Entry must also be provided No other government agency requirements Use of CBP-created Encrypted Number [Format: ‑CCCCCCCCCCC] for Consignee is not accommodated for the SE transaction at this time Simplified entry and summary transactions must be filed in ACE 7 7

ACE Cargo Release Process Simplified Entry is the first phase of Cargo Release. Pilot participants will submit a reduced amount of information—12 required and three optional data elements—prior to the arrival of the merchandise in the U.S. Simplified Entry streamlines the release of goods and enhances cargo security. It segregates the filing of the transportation information from the filing of the entry information. This allows for the earlier filing of entry information which will in turn allow CBP personnel to apply more time and resources as part of its risk-segmented approach in identifying high-risk shipments while potentially reducing transaction costs for the trade community. Filers can update the entry information until the point that the conveyance arrives. 8

What’s Different? Filer must be accepted into the Cargo Release Pilot Fewer data elements – 27 down to 12 (for now) Two-step process, or can certify for release via summary Commercial entity reporting Buyer Seller Manufacturer – not MID, transmit name and address Time frame – transmission prior to departure is the goal Updates permitted – may file “replace” data until the conveyance has been arrived and released EDI Deletion/Cancellation Requests Paperless environment – no 3461-dealing with non automated partners Document Imaging System – used to support the paperless environment Currently supported through an email transmission of requested documents

Status Notifications Initial response – edit validation – transmission accepted or rejected If SE makes match to ACAS, can provide preliminary status m(air environment) If no ACAS, linked to AAMS ( M1 in Ocean) If neither on file – receive status as no match, and will be suspended until ACAS or AAMS sent ( Ocean M1) Types of ACE Cargo Release Messages ACE Cargo Release Add Status Message Conditional Cargo Release Processing Status Messages Bill Match Dispositions Status Messages

Status Messages Prior to arrival, you may update the data, If the SE transmitted a bad MAWB/HAWB causing no bill match: If freight has not departed, may delete entry and re-file If freight has departed, do B/L update If everything has been transmitted in advance, and in good order, once the carrier transmits the flight departure message (FDM) in AAMS, you will receive a release status message. Release date update message would be sent upon conveyance arrival: 10-day clock starts with conveyance arrival if released upon arrival 10-day clock starts with release date if release issued after conveyance arrival Updates from Heather: “If the cargo will not move, transmit deletion” “If the conveyance has not arrived, fix and transmit as Replace” (it doesn’t matter if freight has departed or not – it’s a matter of the arrival) “If the conveyance has arrived, and there is no bill match, fix and transmit as Replace” “If the conveyance has arrived, and there is a bill match, but the bill in the SE is incorrect, transmit as Update” (could be when there is a typo on bill number even when matched).

ACE Cargo Release Add Status Message 01 Message Rejected 02 Message Accepted 03 Message Accepted with Warning(s) 04 Message Referred to Human Review 11 Record Rejected 13 Record Accepted with a Warning

Status Messages –Conditional Cargo Release Processing 03 PENDING INTENSIVE EXAM 22 RELEASE DATE UPDATE 23 ENTRY CANCELLED 90 UNDER CBP REVIEW 96 DOCUMENT REQUIRED (DIS) 97 ADMISSIBLE 98 RELEASED (no Paperless vs. Release) 99 RELEASE SUSPENDED (Carrier updates to split)

Status Messages Bill Match Dispositions 91 NO BILL MATCH 92 ACAS BILL ON FILE 93 BILL ON FILE 94 BILL DEPARTED 95 BILL ARRIVED 51 MANIFEST HOLD CBP 52 MANIFEST HOLD AGRICULTURE 53 CBP HOLD 54 CBP MANIFEST HOLD REMOVED 55 AGRICULTURE MANIFEST HOLD REMOVED 56 CBP HOLD REMOVED 57 SPLIT BILL DOES NOT QUALIFY FOR RELEASE 58 QTY IS MORE THAN MANIFESTED BILL QTY Refer to: CATAIR Chapter – ACE Cargo Release / SE ACE Cargo Release / SE Status Notification

ACE Cargo Release Tips ACE Cargo Release Transmission No need for Quantity, Firms Code, Planed Port of Entry (unless PGA/Or you transmit IT#), Flight / Date etc. In the case of where the entered quantity will be less than the full manifest quantity, the bill of lading Quantity is a required data element (i.e. 100 PKGS: 60 PKGS Entry / 40 PKGS Inbond) ACE Cargo Release Notification, upon bill match, will return: Bill Status Details (Departed/Arrived) Flight Details Date Details Manifest Quantity Details ACE Entry Summary transmission ACE Cargo Release notification will provide much of the needed transportation details to file the Summary and prepare Delivery Order ACE Entry Summary must include all required data transmitted today Manage Entry Summary Transmission if filing two step process Port Details IT Detail (IT#, Ports, Dates) Split Indicator Split Details

ACE Air Cargo Release Tips Split Shipment Cargo tendered to the carrier as a single shipment, under a single bill of lading for carriage on a single conveyance, and subsequently split by the carrier for transport on multiple conveyances No need to FAX/email CBP to post each part of the split. The current manual process is very labor intensive for Trade and CBP. Significant change and improvement to the process Split Indicator decision time: Hold All - Release Entry when all cargo qualifies for release (all parts arrive) On initial transmission, do not send Split indicator (CBP assumes Hold All) No need to send an “Update” once you are notified of split if you wish to Hold All Filer will not see a release until all parts have arrived. Release for each part will post automatically Cargo Release Notification will show SPIT SHIPMENT RELEASE PENDING until all parts arrive Immediate Delivery Procedures - Request Special Permit to release cargo incrementally Send SE “Update” to change Split Indicator to “2” If Split indicator “2’ is transmitted prior to arrival, entry date will be set to when the first portion of the split shipment has arrived, if Updated after a portion of the splits have arrived, release date will be the entry date. Release for each part that has arrived will post automatically 10 days for all parts to arrive. More than 10 days from release date or arrival (whatever is latest), must do a new entry for the balance. (“Split Bill not Eligible for Release” message will be received)

ACE Cargo Release Update ACE Cargo Release (SE) Updates are sent as a “U” Update action code The Update code is used to correct or update: Bill of Lading information Report specific transportation information Change the “Split” indicator (Similar to the Bill of Lading update in ACS) Update to the bill information is allowed up to 15 days after the cargo has arrived When filer only needs to update the bill of lading and specific transportation information, use the Update submission rather than the Replace submission as there is an important distinction between and Update and a Replace “U” Update does not need to be reviewed by CBP “R” Replace has to be reviewed by CBP

ACE Cargo Release Corrections ACE Cargo Release (SE) Correction requests are sent as a “R” Replace action code Corrections are transmitted to CBP electronically for data elements other than bill of lading information Eliminates Pen & Ink/Old & New manual correction by CBP Correction request must include filer contact name and phone number that can discuss the correction NO correction after both arrival and release Filer will receive “Replace Request Pending” status Correction must be actioned by CBP before filer can submit a subsequent correction

ACE Cargo Release Corrections Corrections will run through selectivity targeting CBP system will provide visibility to CBP Officer of each data element that has been replaced compared to the original data transmitted Correction accepted by CBP: Filer will receive a new disposition message (SO) Cargo Release will have a new “version” Correction is now the “active” entry record Correction Rejected: CBP will send a Reject Reason Code Look for Comments Make Sure Entry Summary is updated as necessary

ACE Cargo Release Cancellations ACE Cargo Release SE Deletion/Cancellation requests are sent as a “D” (Delete/Cancel) action code Send contact name and number of person who can discuss the cancellation If the Delete/Cancel action is submitted prior to bill match, ACE Cargo Release will be Deleted and entry number can be reused for another entry submission If “D” action is submitted after bill match, this becomes a Cancellation, and request will be reviewed by CBP prior to accepting or rejecting the cancellation request CBP will process Cancellation or Reject Request Cancellation Requests Rejections: CBP will be able to return standard messages as well as customized comments. If Request is rejected, a new Request must be submitted to pursue a cancellation. Each Request submission stands on its own

ACE Cargo Release Cancellations If an ACE Entry Summary has been transmitted: ACE Entry Summary is in Trade Control   Send SE Deletion/Cancellation “D” action Delete Entry Summary Transmission ACE Entry Summary is in CBP Control Send cancellation request to CBP per the ACE Entry Summary Business Rules. When that Entry Summary is cancelled, the ACE Cargo Release transaction will automatically be cancelled DIS submission related to the correction / cancellation request: Send Documents in advance of the submission of the correction / cancellation request. DIS should include the Filer-assigned [DIS] Reference number which links it to the specific correction / cancellation request This reference number should be unique for the associated entry number and should not be repeated for other DIS submissions for the same entry number, including the entry summary and other post summary submissions

ACE Cargo Release Submitting Documentation to CBP Send an email to SimplifiedEntryDocs@cbp.dhs.gov with the below details. Subject Line should have: ENTRY_NUMBER=12345678; FILER_CODE=ABC;ACTION=ADD Note that 12345678 and ABC are only examples. Do not put ‘-‘ (dashes) in the entry number Do not affix the Filer code to the Entry. They should be separate as shown above. ACTION=DELETE may be used to indicate to CBP that the attached document was sent in Error There should one or more attachments (preferably pdfs) on the emails you submit. The file names of the attachments should have the document-type as a prefix with a ‘dash’. For ex. (02-WhateverYouLike.pdf). You can use any filename after the 02- as per your company’s naming preference. The document-type prefix must be between 01 and 10 (i.e. the same types in the SE spec, that you would have received on the CBP DocRequest in the SO message) In the email body use the below section to indicate any POC_INFO and a COMMENT (Both items are optional). Plus, you can have any text before and after the section below in your email if you like.     START_DATA     POC_INFO=Stephanie Holloway 973-514-5535     COMMENT=Any comment you might want CBP to see.     END_DATA

ACE Cargo Release Submitting Documentation to CBP File Size Limitations The total email size including all attachments may not exceed 10MB For larger documents please breakup into multiple documents and submit multiple emails for the same Entry (i.e. same email subject line) Submission Status Email : Upon submission you will receive an automated email from the CBPDocsRequired mailbox indicating SUCCESS or FAILURE Do not submit emails to the CBPDocsRequired mailbox Sample response:

Single Transaction Bonds Entries that require a single transaction bond must email a scanned copy of the STB to the revenue division, office of administration mailbox at the following email address: ACE_STB@cbp.dhs.gov CBP will return inadequate STBs to the filer via email for corrective action Some software vendors may have built an automated function to email this if you have an automated SEB program Some sureties have this function in their on line web based bond customer interface-check with your surety

Participating Government Agencies (PGAs)

PGA Integration CBP is prioritizing onboarding of those PGAs with release decision authority to ensure they are integrated with Cargo Release by the time it becomes mandatory PGAs who do not play a role in determining cargo admissibility, but will be receiving data, will be onboarded by the end of 2016 Additional HTS Flags added in the ABI Tariff Updates PGA with release authority: Food and Drug Administration (BTA) Environmental Protection Agency(TSCA) (Insecticide, Fungicide) Fish and Wildlife Service Food Safety Inspection Service (Meat & Poultry) ** (Pilot) FMCSA (EPA Vehicles and Engines) (Ozone Depleting Substances) ** (Pilot) Plant Protection Quarantine Must Apply To Participate in the PGA Pilots

ACE eBond Coming January 3, 2015

ACE eBond STB Centralization Concept

ACE STB eBond Entry – Broker & Surety Process

ACE STB eBond Communication with Sureties Ensure your ABI vendor is working with your surety to establish data connection The trade is looking for sureties to standardize the data elements based on the list below Shipment Level Action Code (Add, Replace, Delete) Entry Filer/Number and Type Importer of Record Number Bond Amount Bond Principal Country Estimated Value Bond Producer Account Number Total Duty, Fees, AD/CVD and IR Tax AD/CVD Only Indicator Broker Reference Anticipated Port Code Contact method for Exceptions Line level Tariff Numbers PGA Agency Codes AD/CVD Case Numbers

ACE STB eBond Benefits CBP Brokers Assurance surety is accepting liability Validation of bond prior to release No paper Uniformity Brokers Bond filing will be 24/7 No documents required RLF entries will be accepted on STBs Better reporting from surety http://www.cbp.gov/document/guidance/customs-ebond-createupdate-catair-chapter

Future ACE Development

Remaining Deployments High Level View http://www.cbp.gov/document/guidance/ace-development-and-deployment-schedule

Recent ACE Capabilities (November 2013 – July 2014)

Recent ACE Capabilities (November 2013 – July 2014)

Current Deployment Three Phases

Current ACE Benefits

ACE Resources

ACE Resources

ACE Resources http://nemo.cbp.gov/ace_online/ Web-based training courses User friendly Detailed content

ACE Resources http://www.lacbffa.org/resources_ace LACBFFA page has links to CBP page ACE webinar presentations are posted here

Upcoming LACBFFA Events To register visit: http://www.lacbffa.org

Thank You! Presentation will be posted to: http://www.lacbffa.org/resources_ace Submit questions to: la.cbffa@verizon.net