Automated Commercial Environment (ACE)

With CBP regulations on new drawback procedures still not issued, software developers are growing concerned about whether they will be ready for the new system’s upcoming deployment in ACE. CBP has pledged to have capabilities in place for the new Trade Facilitation and Trade Enforcement Act drawback provisions on Feb. 24, but though the agency has found funding and begun its own programming efforts, software developers have been unable to start coding, leaving little time for testing before the deadline, several developers said in interviews.

A Trump administration policy to repeal two regulations for every new one created could be complicating the Department of Homeland Security’s issuance of a proposed rule to make mandatory the air cargo advance screening (ACAS) program run by CBP and the Transportation Security Administration (TSA), Cargo Airline Association President Stephen Alterman told senators Sept. 28. "I think that one of the problems that they're encountering is we do have this new administration's rule that you can't put in new rules without taking two away, and the cost implications of that," he said. Acting CBP Commissioner Kevin McAleenan has argued that ACAS qualifies for an exemption from the "two-for-one" requirement because it has a national security basis (see 1705180027).

The Alcohol and Tobacco Tax and Trade Bureau signed a memorandum of understanding to take part in the Commercial Targeting and Analysis Center, CBP said in a Sept. 19 news release. The CTAC, which includes CBP and Homeland Security Investigations, is a multiagency enforcement partnership. “The CTAC stands as a glowing example of how interagency collaboration as ‘one U.S. Government at the border’ can better serve the American public,” said Brenda Smith, executive assistant commissioner for the CBP Office of Trade. “CTAC collaboration, which is fortified by the progress of the Automated Commercial Environment (ACE) Single Window, allows for better management of resources and more efficient, streamlined import processing.”

CBP will push back the mandatory use date for e214 foreign-trade zones admissions in ACE to Dec. 9, Acting CBP Commissioner Kevin McAleenan said at the National Customs Brokers & Forwarders Association of America Government Affairs Conference on Sept. 11 in Washington. The delay of the deadline, previously set for Sept. 16, comes in response to concerns from industry, McAleenan said. The agency planned to make a formal announcement on Sept. 11, he said.

CBP posted on the agency's website some documents for the upcoming Commercial Customs Operations Advisory Committee (COAC) meeting on Aug. 23 in San Diego. Only the government papers and the agenda for the meeting were posted. Among other things, CBP said in its Border Interagency Executive Council issue paper that the BIEC principals plan to meet on Aug. 28 to consider a working group report on partner government agency targeting and manifest access. "The BIEC is working on several major projects, along with developing a process to prioritize enhancements to Automated Commercial Environment (ACE) that are considered 'post-core,'" the agency said. The BIEC will also "be focusing on continued ACE enhancements and simplifying CBP processes, in line with CBP’s trade priorities and funding availability," it said.

The transition of Importer Security Filing (ISF) from the legacy Automated Commercial Service to ACE will be included as part of CBP’s Sept. 16 ACE deployment (see 1707270035), the agency said in a CSMS message. “More details will be available the week of August 21. In the meantime, trade parties may continue to test ISF in CBP’s certification environment,” it said. ISF had been scheduled for deployment on Jan. 14, 2017, before it was postponed indefinitely (see 1701060052), along with other ACE post-release capabilities (see 1701110039).

CBP's Commercial Targeting Enforcement Directorate and the Johns Hopkins University Applied Physics Laboratory (JHU/APL) are working together on a project to use "commercial trade data to enhance and identify pattern identification, entity links, and anomalies within large datasets," the Department of Homeland Security said. The project was mentioned within a newly released DHS 2016 data mining report to Congress (here). The project, called Socrates, "was initiated to determine the analytical abilities JHU/APL could apply to trade data analytics" and "during Fiscal Year (FY) 2016, a pilot test was completed by JHU/APL using import data," DHS said.

CBP is looking at whether to relax a limit on the number of import entries allowed on manual drawback entries after Jan. 14, said Randy Mitchell, director, Commercial Operations, Revenue and Entry Division, at CBP. Mitchell, who spoke on a drawback webinar Jan. 4, said the agency right now still plans to limit manual claims filed at drawback centers to 25 import data "elements" starting Jan. 15, as described in the ACE Entry Summary Business Rules (here). But, "we're discussing right now if we need to broaden that," he said. "We're really working with our operational office also because it really impacts them if we loosen that policy decision up and include all of the import entries," he said. CBP is "weighing all those concerns" and will update its business rules if it decides a change is necessary, he said. Several webinar participants inquired about the limit.

The Commercial Customs Operations Advisory Committee (COAC) for CBP will next meet Nov. 17 in Washington, CBP said in a notice (here).

CBP faces a challenging budget environment for ACE as it works to find funding for improvements and new functionalities long desired by the trade community, said Cynthia Whittenburg, deputy executive assistant commissioner at CBP’s Office of Trade, at a National Customs Brokers & Forwarders Association of America conference in Washington Sept. 12. Following completion of “core” ACE in December, the “funding profile” will “adjust downward” as CBP will be legally required to use ACE operations and maintenance funding for operations and maintenance, and will not be able to use the funds for building new capabilities, including for partner government agencies (PGAs). “So when you see in our appropriations and funding, 'ACE,' those dollars are going strictly to fixing bugs and keeping the system running,” she said.