Automated Commercial Environment (ACE)

With major changes ahead for CBP’s national permitting scheme, licensed customs brokers are increasingly concerned with the prospects for the profession, said several brokers in interviews. The expansion of remote location filing on national permits to all entry types and government agencies, set to occur by the end of 2016 alongside full implementation of the Automated Commercial Environment, could allow brokerages to employ a single licensed individual to qualify all of their customs business. Brokers have been active in voicing concerns that such an outcome could undermine compliance and make customs brokering a less attractive profession, but have yet to find a solution acceptable to CBP.

CBP issued the following releases on commercial trade and related matters:

Cindy Allen, formerly of DHL Global Forwarding and prior to that head of CBP’s ACE Business Office, opened a new consulting firm focused on assisting importers, exporters, customs brokers and software developers, she said in an email. The new company, named Trade Force Multiplier, will advise importers and exporters seeking to comply with the demands of partner government agencies and customs brokers seeking to automate and implement the Automated Commercial Environment. The firm will also offer a training and reference resource for desk-level employees at brokerages, importers, exporters and forwarders.

CBP will open up its Automated Commercial Environment entry summary pilot to type 51 entries (merchandise imported by the Defense Contract Management Command (DCMAO NY) Military Only) and type 52 entries (government-dutiable – other than Defense Contract Management Command (DCMAO)), it said in a notice (here). Brokers and importers that use ACE will be able to electronically file an ACE entry summary for the release of entry type 51 and 52 cargo, in the air, ocean, rail, and truck modes of transportation as well as for mail, pedestrian, and passenger (hand-carried) modes of transportation, it said. The same eligibility requirements apply as those for entry types 01, 03 and 11, which are already part of CBP’s entry summary test. Brokers and importers seeking to participate should contact their CBP client representatives, or otherwise email Steven Zaccaro at steven.j.zaccaro@cbp.dhs.gov.

The Federal Communications Commission will temporarily waive its Form 740 certification requirements for radio frequency (RF) devices imported after CBP's Automated Commercial Environment becomes mandatory for FCC entries on July 1, it said in an order issued Oct. 19 (here). The waiver, which will remain in effect until Dec. 31, 2016, allows time for the FCC to consider its proposal to eliminate importer declaration requirements entirely (see 1508110024), without imposing “significant burdens” on importers that would otherwise be forced to file on paper once ACE is required, the FCC said. Given the complexity of the FCC rulemaking, it’s possible the commission will be “unable to reach and publish a final determination” by July 1, when CBP will no longer accept electronic filing of FCC Form 740 via its legacy Automated Commercial System, it said.

CBP announced it is beginning a pilot to test filing of Electronic Export Information (EEI) through AESDirect in the Automated Commercial Environment (here). Beginning “no earlier than Oct. 1,” U.S. Principal Parties in Interest (USPPIs) or their authorized agents will be able to transmit EEI by selecting the “Submit AESDirect Filings” link in the ACE Exporter Account Portal, said CBP in the notice, which also has instructions on how to sign up for an Exporter Portal account. Once fully functional and available to all filers, ACE AESDirect will replace the Census Bureau’s AESDirect system, and the legacy system will be discontinued, said CBP.

PALM SPRINGS, Calif. -- Still lackluster filing rates in the Automated Commercial Environment for cargo release have Brenda Smith, CBP assistant commissioner for the Office of International Trade, already nervous about whether industry will be ready for the Feb. 28 mandatory use date, she said at the Western Cargo Conference on Oct. 16. While still optimistic, with around 10 percent of cargo release filings using ACE, she said there's some major concern. "Are we going to make Feb. 28?," she asked. "With these numbers? I don't think so."

CBP on Oct. 17 began accepting entry and entry summary types 23 (Temporary Importation Bond (TIB)) and 06 (Consumption – Foreign-Trade Zone (FTZ)) in the certification and production environments of the Automated Commercial Environment, the agency said (here). CBP previously scheduled deployment of quota-related entry types for Feb. 27, but has since revised that plan following industry concerns (see 1509300020).

CBP will open up its test for the Document Image System to "anyone transmitting cargo release or entry summary information to" the Automated Commercial Environment, the agency said in a notice (here). As of the effective date, Oct. 15, CBP will also expand the forms that are supported in the DIS, it said. CBP will also announce additions of DIS-eligible forms in CSMS message, rather than through Federal Register notices, and will maintain a list of eligible forms on its website (here). The changes are among CBP's preparations for the planned transition to ACE (see 1509300020).

CBP spelled out its plans for shutting down the Automated Commercial System and requiring the Automated Commercial Environment for electronic filing in an interim final rule (here), as expected (see 1509300020). The interim rule explains that ACE will be an authorized Electronic Data Interchange system as of Nov. 1 and that CBP will phase out ACS as an authorized EDI. CBP will also end pilot programs and adjust its regulations as part of the change to ACE, it said. Comments are due Nov. 12.