1 Periodic Monthly Statement Process Wesccon 2004 Dale H Wilson Office

2 Agenda Periodic Monthly Statement Terminology Periodic Monthly Statement Process Portal Screens Sample Periodic Monthly Statement Additional Information Questions

Periodic Monthly Statement Terminology

4 Daily Statement Periodic Daily Statement (PDS) Periodic Monthly Statement (PMS) ‘EI’ – Entry Summary ‘HP’ – Statement Delete ‘PN’ – Periodic Daily Statement Debit Authorization and/or Entry Summary Presentation

Periodic Monthly Statement Process

6 The Periodic Monthly Statement process consists of the following steps: 1.Process entry summaries for Periodic Daily Statement 2.Remove entries before preliminary Periodic Daily Statement 3.Produce preliminary Periodic Daily Statement 4.Remove entries before final Periodic Daily Statement 5.Process Periodic Daily Statement ACH Debit authorization and/or entry summary presentation 6.Produce final Periodic Daily Statement 7.Remove entries before preliminary Periodic Monthly Statement 8.Produce preliminary Periodic Monthly Statement 9.Remove entries before final Periodic Monthly Statement 10.Process payment (ACH Credit / ACH Debit) 11.Produce final Periodic Monthly Statement

7 Periodic Monthly Statement Process Step 1 – Process Entry Summaries for Periodic Daily Statement  This process may be thought of as the existing daily statement process with no payment due until the 15th calendar day of the month following entry or release.  Filer transmits entry summary data and schedules it for a Periodic Daily Statement using existing EI application identifier.  The payment type indicator value (record identifier 30) indicates the statement type: 6 – Broker/Filer Periodic Daily Statement or 7 - Importer Periodic Daily Statement or 8 - Combined Importer Periodic Daily Statement  The periodic statement month (new field on record identifier 30) indicates the month for payment. This controls the Periodic Monthly Statement on which the entry summary will be included.

8 Periodic Monthly Statement Process Step 1 – Process Entry Summaries for Periodic Daily Statement (Continued)  Entries excluded from the Periodic Monthly Statement process  Reconciliation (Type 09)  NAFTA Duty Deferral (Type 08)  Entries with tax class codes  Entries with Census errors/warnings  ABI release and entry messages same as existing daily statement.  This creates/updates a receivable in the subsidiary ledger for the entry summary.  Entry summary receivable can be viewed on the sub-ledger report through the reports tab of the ACE Secure Data Portal.

9 Periodic Monthly Statement Process Step 2 – Remove Entries Before Preliminary Periodic Daily Statement  The entry summary payment type indicator can be updated using the HP application identifier. This allows for:  Changing method of payment from a single payment to a statement payment (daily statement or Periodic Daily Statement) or vice versa.  If changing the entry summary to appear on a Periodic Daily Statement, the periodic statement month (new field on record identifier H) indicates the month for payment. This controls the Periodic Monthly Statement on which the entry summary will be included.  This reverses/updates a receivable in the subsidiary ledger for the entry summary.

10 Periodic Monthly Statement Process Step 3 – Produce Preliminary Periodic Daily Statement  On the preliminary statement print date indicated on the EI transmission CBP will route the preliminary Periodic Daily Statement (application identifier QR) to the filer.  No difference in record layouts for a regular daily statement and a Periodic Daily Statement.  The payment type indicator value (record identifier B of the QR application identifier) indicates the statement type: 2 - Broker/Filer daily statement or 3 - Importer daily statement or 5 - Combined importer daily statement or 6 - Broker/Filer Periodic Daily Statement or 7 - Importer Periodic Daily Statement or 8 - Importer Combined Periodic Daily Statement  This adds the Periodic Daily Statement number to the entry summary receivables in the subsidiary ledger.

11 Periodic Monthly Statement Process Step 4 – Remove Entries Before Final Periodic Daily Statement  The entry summary payment type indicator can be updated using the HP application identifier. This allows for:  Deleting an entry from an unpaid preliminary statement (daily statement or Periodic Daily Statement)  Changing the payment type indicator and preliminary statement print date (record identifier H) after the preliminary statement is issued  If changing the entry summary to appear on a Periodic Daily Statement, the periodic statement month (new field on record identifier H) indicates the month for payment. This controls the Periodic Monthly Statement on which the entry summary will be included.

12 Periodic Monthly Statement Process Step 4 – Remove Entries Before Final Periodic Daily Statement (Continued)  If an entry summary is deleted from a preliminary statement (daily statement or Periodic Daily Statement) it will be included with record identifier Q7 as part of the final daily statement transmission.  This reverses/updates a receivable in the subsidiary ledger for the entry summary.

13 Periodic Monthly Statement Process Step 5 – Process Periodic Daily Statement ACH Debit authorization and/or entry summary presentation (PN)  New application identifier (PN) will be used for Periodic Daily Statement ACH Debit authorization and/or entry summary presentation.  For ACH Debit participants this is similar to the existing ACH Debit authorization (application identifier QN) for daily statements.  For ACH Credit participants this is new. They will not use the payer unit number field of this transaction.  Like the QN transaction for the existing Daily Statement, multiple Periodic Daily Statements can be included in a single PN transaction.  The PN transaction stops the ’10 day’ clock for late file purposes. Entry summaries and a copy of the Periodic Daily Statement must also be presented to the entry section at this time.

14 Periodic Monthly Statement Process Step 5 – Process Periodic Daily Statement ACH Debit authorization and/or entry summary presentation (PN) - Continued  When the PN transaction is processed the Periodic Monthly Statement number is added to the entry summary receivables in the subsidiary ledger.  At this time the Periodic Monthly Statement (that this Periodic Daily Statement belongs to) can be viewed through the statements tab of the ACE Secure Data Portal.

15 Periodic Monthly Statement Process Step 6 – Produce Final Periodic Daily Statement  During the ACS end-of-day cycle, on the night the PN transaction is processed, CBP will route the final Periodic Daily Statement (application identifier QR) to the filer.  No difference in record layouts for a regular daily statement and a Periodic Daily Statement.  The payment type indicator value (record identifier B of the QR application identifier) indicates the statement type: 2 - Broker/Filer daily statement or 3 - Importer daily statement or 5 - Combined importer daily statement or 6 - Broker/Filer Periodic Daily Statement or 7 - Importer Periodic Daily Statement or 8 - Importer Combined Periodic Daily Statement

16 Periodic Monthly Statement Process Step 7 – Remove Entries Before Preliminary Periodic Monthly Statement  An entry summary can be removed from a Periodic Daily Statement after the final Periodic Daily Statement has been generated but prior to payment of the Periodic Monthly Statement.  The entry summary is removed using the existing HP application identifier.  When the entry summary is removed after the final Periodic Daily Statement has been generated, the entry becomes a ‘single pay’.  This reverses a receivable in the subsidiary ledger for the entry summary.  If an entry summary is removed after the final Periodic Daily Statement has been generated, it will be included with record identifier Q7 as part of the of the preliminary and final Periodic Monthly Statement transmission (application identifier MS).

17 Periodic Monthly Statement Process Step 8 – Produce Preliminary Periodic Monthly Statement  CBP will route the preliminary Periodic Monthly Statement (new application identifier MS) to the filer on the date selected.  The default date will be the 11th of the month.  A date from the 1st through the 11th of the month may be selected by:  The importer for importer and importer combined statements  The broker/filer for broker/filer statements  The payment type indicator value (record identifier B of the MS application identifier) indicates the statement type: 6 – Broker/filer Periodic Monthly Statement or 7 - Importer Periodic Monthly Statement or 8 - Importer Combined Periodic Monthly Statement

18 Periodic Monthly Statement Process Step 9 – Remove Entries Before Final Periodic Monthly Statement  An entry summary can be removed from a Periodic Daily Statement after the final Periodic Daily Statement has been generated but prior to payment of the Periodic Monthly Statement.  The entry summary is removed using the existing HP application identifier.  When the entry summary is removed after the final Periodic Daily Statement has been generated, the entry becomes a ‘single pay’. If paid after the 10th day, the entry becomes a late pay.

19 Periodic Monthly Statement Process Step 9 – Remove Entries Before Final Periodic Monthly Statement (Continued)  This reverses a receivable in the subsidiary ledger for the entry summary.  If an entry summary is removed after the preliminary Periodic Monthly Statement has been generated, it will be included with record identifier Q7 as part of the of the final Periodic Monthly Statement transmission (application identifier MS).

20 Periodic Monthly Statement Process Step 10a – Process Payment (ACH Credit)  For ACH Credit participants, the Periodic Monthly Statement payment is initiated by the participants with their bank.  When the payment is received and processed during the ACS end- of-day cycle, the final Periodic Monthly Statement (new application identifier MS) is routed to the filer.  The receivables created for the entry summaries are marked paid in the subsidiary ledger.  The Periodic Monthly Statement is marked paid and can be viewed through the statements tab of the ACE Secure Data Portal.

21 Periodic Monthly Statement Process Step 10b – Process Payment (ACH Debit)  For ACH Debit participants, the Periodic Monthly Statement payment is initiated by CBP on the 15th of the month. The debit authorizations processed during the month will be sent to the bank for processing.  No action is required by the ACH Debit participant.  The receivables created for the entry summaries are marked paid in the subsidiary ledger.  The Periodic Monthly Statement is marked paid and can be viewed through the statements tab of the ACE Secure Data Portal.

22 Periodic Monthly Statement Process Step 11 – Produce Final Periodic Monthly Statement  After the payment is processed during the ACS end-of-day cycle, the final Periodic Monthly Statement (new application identifier MS) will be routed to the filer.  The payment type indicator value (record identifier B of the MS application identifier) indicates the statement type: 6 – Broker/Filer Periodic Monthly Statement or 7 - Importer Periodic Monthly Statement or 8 - Importer Combined Periodic Monthly Statement

23 Periodic Monthly Statement Process

24 Periodic Monthly Statement Process

Portal Screens

26 Statements Tab – Open Periodic Monthly Statements

27 Periodic Daily Statements associated to a specific Periodic Monthly Statement

28 Entry Summaries associated to a specific Periodic Daily Statement

Broker Application Process Broker Account Application Process – see 69 FR 5362, dated Feb. 2, 2004 Requires Internet access and participation in Customs-Trade Partnership Against Terrorism (C-TPAT) Additional requirements for use of Periodic Monthly Payment/Statement – see 69 FR 5362, dated Feb.4, 2004 Requires payment via ACH Credit or ACH Debit and participation in ABI See also – 69 FR 54302, dated Sept 8, 2004 (Importers and Brokers) 69 FR 55167, dated Sept 13, 2004 (Truck Carriers) 29

30 Broker Application Process Send application to: Broker Account Applicants must provide following information  Broker Name  Filer Code  Unique Identification Number (EIN, SSN)  C-TPAT Certification  Internet access  ABI participation  ACH Credit or Debit participation

Benefits Periodic Monthly Statement (PMS) Ability to service customers who are ACE Importer Accounts Ability to pay Via PMS when broker is shown as importer of record. If acting as Importer of record, must obtain bond rider as stated in FRN. Ability to view statement as it is being built. Ability to select either a national or a port statement. Reports Over 60 reports available plus quick views covering account financial and transactional data. User access Ability for the Account Owner to set user access privileges. No Access, View Only or Full Access can be granted at the portal tab level 31

Questions?

Additional Information

34 Additional Information – The Pay Basis Indicator  The Pay Basis Indicator of the Entry Summary EI transaction (submitted through ABI) is what determines the type of Periodic Daily Statement on which a particular entry summary will appear:  Broker Periodic Daily Statements have entry summaries with a Pay Basis Indicator 6  Importer Periodic Daily Statements have entry summaries with a Pay Basis Indicator 7  Importer Combined Periodic Daily Statements have entry summaries with a Pay Basis Indicator 8  If an entry summary appears on a Broker Periodic Daily Statement, that Periodic Daily Statement will appear on a Broker Periodic Monthly Statement.  If an entry summary appears on an Importer Periodic Daily Statement, that Periodic Daily Statement will appear on an Importer Periodic Monthly Statement.  If an entry summary appears on an Importer Combined Periodic Daily Statement, that Periodic Daily Statement will appear on an Importer Combined Periodic Monthly Statement.

35 Additional Information – Broker Accounts  In ACE Release 3, Broker Accounts (brokers set up with a broker account, and importers with a filer code set up with a broker account) will have the ability to produce:  Broker Port Periodic Monthly Statements (Pay Basis Indicator 6)  Broker National Periodic Monthly Statements (Pay Basis Indicator 6)  Importer Port Periodic Monthly Statements by filer code (Pay Basis Indicator 7)  Importer Combined Port Periodic Monthly Statements by filer code (Pay Basis Indicator 8)  The way a broker or importer with a filer code indicates a port or national Broker Periodic Monthly Statement (Pay Basis Indicator 6) is to indicate this when setting up their broker account. Broker accounts will have the option of ‘Port’ or ‘National’ Periodic Monthly Statements.

36 Additional Information – Importer Accounts  In ACE Release 3, Importer accounts will not have the ‘Port’ or ‘National’ Periodic Monthly Statement option. Importer (Pay Basis Indicator 7) and Importer Combined (Pay Basis Indicator 8) Periodic Monthly Statements will always be ‘Port’ statements.  There will be no such thing as an Importer National Periodic Monthly Statement or Importer Combined National Periodic Monthly Statement (Pay Basis Indicator 7 and 8). If an Importer wishes to have a national statement, the only way to do this will be to use one filer code for all their entry summaries and to place them on a Broker National Periodic Monthly Statement (Pay Basis Indicator 6).

37 Additional Information – Using Multiple Filer Codes in One Port  Note: Just like today with Daily Statements, with Periodic Daily Statements and Periodic Monthly Statements, if an importer uses different brokers to process their entry summaries in a given port these entry summaries will appear on different Periodic Daily Statements and Periodic Monthly Statements if they are filed with different filer codes. Only if they are filed with one filer code (usually the importer’s if they have one), will all the entry summaries for that port appear on one Periodic Daily Statement and one Periodic Monthly Statement.

38 Additional Information – Broker Account Portal View  A broker account will be able to view the following Periodic Monthly Statements through the ACE Secure Data Portal:  Broker Periodic Monthly Statements containing their filer code  Importer Periodic Monthly Statements containing their filer code  Importer Combined Periodic Monthly Statements containing their filer code  Brokers will be also able to view all entry summaries with their filer code (no matter what importer number is used) through the Subsidiary Ledger Report of the ACE Secure Data Portal.  If a broker uses an importer’s filer code when filing entry summaries the broker will not be able to view the Periodic Monthly Statements on which those entry summaries are reported through the ACE Secure Data Portal. This is true no matter what type of Periodic Monthly Statement (Broker, Importer or Importer Combined).  Brokers will not be able to view entry summaries filed with an importer’s filer code through the Subsidiary Ledger Report of the ACE Secure Data

39 Additional Information – Importer Account Portal View  An importer account will be able to view the following Periodic Monthly Statements through the ACE Secure Data Portal:  Importer Periodic Monthly Statements (no matter what filer code) for their importer numbers  Importer Combined Periodic Monthly Statements (no matter what filer code) for their importer numbers  Importers will also be able to view all entry summaries with their importer number (no matter what filer code is used) through the Subsidiary Ledger Report of the ACE Secure Data Portal.  If a broker uses their own filer code when filing entry summaries for an importer, the importer will not be able to view the Periodic Monthly Statements on which the entry summaries are reported through the ACE Secure Data Portal if they are reported on a Broker Periodic Monthly Statement.

40 Additional Information – Subsidiary Ledger Report vs Periodic Monthly Statement Report  As was shown earlier, entry summaries go through several steps from the time that they are first filed through ABI until they are ultimately paid on a Periodic Monthly Statement. As they go through these steps, they may or may not be able to be queried through the ACE Secure Data Portal.  When an entry summary is filed, a release date, and class code information are present it can be queried through the Subsidiary Ledger Report of the ACE Secure Data Portal.  When an entry summary is filed and a release date is not available, but class code information is, and it appears on a preliminary Periodic Daily Statement, it can be queried on the Subsidiary Ledger Report.  When an entry summary appears on a Periodic Daily Statement it is assigned a Periodic Daily Statement number.

41 Additional Information – Subsidiary Ledger Report vs Periodic Monthly Statement Report (Continued)  When an entry summary appears on a Periodic Daily Statement and that statement has a ‘PN’ transaction processed against it, it is assigned a Periodic Monthly Statement.  Not until an entry summary has been assigned a Periodic Monthly Statement number can the monthly statement, and thus the entry summary be queried through the Periodic Monthly Statement Report (Statements Tab) of the ACE Secure Data Portal.  In almost all circumstances an account will have more entry summaries that can be queried through the Subsidiary Ledger Report than the Periodic Monthly Statement Report.