CBP Posts Useful Update on ACE, Entry Simplification, & TSN Meeting

At the October 4, 2011 COAC meeting, U.S. Customs and Border Protection officials provided an update on the Automated Commercial Environment and the International Trade Data System since the previous COAC meeting in August 2011. According to CBP, ACE continues to be among the agency’s top business priorities. CBP officials also provided an update on its activities on M1, ITDS, Cargo Release, the September 2011 Trade Support Network Plenary, and ACE for Export Processing.

ACE, ITDS and Simplification

10 Participants Are ACE Certified for M1 Pilot, 23 Testing or Plan to Test

CBP started the e-Manifest: Rail and Sea (M1) pilot period began in September 2011. The trade early adopters begin participating in the M1 pilot by migrating to ACE from the legacy system currently processing rail and sea manifests (known as the Automated Commercial System (ACS)) by mid-October.

As of September 22, 2011 10 participants are ACE certified, 14 more have started testing, and nine more are planning to test sometime in the future.

According to CBP, the pilot ports (Baltimore, Buffalo and Brownsville) begin using M1 instead of ACS starting late October. The pilot completion is scheduled for December 28, 2011 and full system deployment is scheduled for January 2012.

(See ITT’s Online Archives 11101733 for summary on CBP notice announcing that ACE M1 pilot deployment would soon begin at three pilot ports.)

1st PGA Web Service Capability Up and CPSC is Operational

CBP says that it has also made great progress with the Commissioner’s ITDS initiatives. One of those initiatives, the PGA Interoperability Web Service (IWS), will enable a web service allowing CBP and PGA systems interface via standardized protocols.

The interface is a major step in realizing the Single Window concept through which PGAs and CBP will communicate and share information related to cargo imports. The first web service capability became available in fourth quarter of fiscal year 2011 and in the beginning of September, the Consumer Product Safety Commission began successfully receiving authorized production entry and entry summary data directly from CBP.

Technology to Support Collection of PGA Message Set to be Built in Oct

The PGA Message Set creates a single, harmonized set of information that will be collected electronically from international traders by CBP on behalf of the PGAs, thereby allowing CBP and the PGAs to make decisions about what cargo can come into the U.S. without the myriad of paper forms currently required.

According to CBP, the PGA Message Set was approved by the ITDS Board of Directors, on May 19, 2011. CBP published the “implementation guides” on www.cbp.gov for the PGA Message Set on June 3, 2011 so international traders and PGAs can begin getting ready to use this new capability. CBP says it will build the technology that supports the collection of this PGA Message Set in October 2011.

(See ITT’s Online Archives 11101720 for summary on CBP’s statement that only ACE summary filers will get DIS and PGA message set.)

CBP Discussing Which PGAs Will Test DIS Functionality

CBP notes that the Document Image System (DIS) allows trade members to supply documentation needed during the cargo release process to Federal agencies electronically. CBP created an ACE Portal link to allow CBP and PGAs to access DIS for imaged forms in March 2011. CBP says it plans to use “Web services” technology to push these imaged forms and corresponding “meta data” to PGAs. The interoperability standards for the web services were delivered to the PGAs in September 2011. CBP’s discussions with PGAs are underway to determine which agencies will begin testing this functionality.

(See ITT’s Online Archives 11100404 for summary of statement by CBP officials that CBP plans DIS pilot for single bonds, then STB remote entries.)

Cargo Release Contract Award Expected in 2012 if Adequate Funding

CBP states that the development of the Cargo Release requirements will focus on the admissibility of imported articles and their release into the commerce of the U.S. in coordination with PGAs and the trade community.

CBP has completed the Concept of Operations and Operational Requirements Document, two key requirements documents that capture the purpose and desired functionality of Cargo Release. Assuming adequate funding is available, the design and acquisition phase for Cargo Release will begin with an anticipated contract award in 2012.

(See ITT’s Online Archives, 11101911 for summary of future trade benefits of ACE cargo release.)

Release/Entry Simplification Pilot Expected by End of 2011

CBP says that it will soon introduce a pilot for the Release/Entry Simplification initiative. The initiative is intended to produce a number of streamlined processes and reduce the administrative burden on filers. Cargo entry/entry summary filings will receive releases based on ISF data and financial processes will be greatly reduced by allowing entry summary filings to be submitted by group. The simplification process also brings data to CBP much earlier in the shipment lifecycle, further promoting trade facilitation. Pilot deployment is planned before the end of 2011.

(See ITT’s Online Archives [Ref11100510] for summary of simplified entry, summary, and financial processing presentation at the October 4, 2011 COAC meeting.)

TSN Plenary Topics

CBP Outlines Priorities for its Office of Int'l Trade

On September 22-23, CBP hosted a TSN Plenary session in the Washington, DC area. Office of International Trade (OT) Assistant Commissioner Al Gina outlined OT’s priorities as: (1) the role of the broker, (2) regulatory revisions, (3) management by account and the centers for excellence and expertise, (4) simplified processes, (5) e-Manifest, (6) PGA initiatives, (7) enhancing trade enforcement and revenue collection, (8) trusted trade programs and (9) ACE.

Deputy Commissioner Aguilar reaffirmed the agency’s commitment to both harmonizing the federal agencies and supporting ACE. CBP announced the formation of the Customs Support Network (CSN), an internal CBP organization designed to complement the TSN and make ACE more functional for internal users.

(See ITT’s Online Archives 11101753 for summary detailing the September 2011 TSN presentations.)

Considering PSC for Initiating Drawback and Reconciliation in ACE

ACE’s Post Summary Correction (PSC) functionality is being evaluated to determine if this functionality could be used for initiating Drawback and Reconciliation in ACE. As Post Summary Corrections, Drawback and Reconciliation are all types of adjustments made after entry summary filing, the Subcommittees are working to determine how the PSC functionality can be leveraged to incorporate other types of post summary adjustments into ACE. This approach could enable faster and more efficient delivery of additional capabilities in ACE rather than building drawback and reconciliation from scratch.

Entry Simplification to Serve Both ISF and Entry Purposes

The introduction of the entry simplification process is understood to not only serve to streamline the procedure, but will allow CBP to make earlier release decisions by notifying filers of required documents, if needed, thereby escalating the release process prior to arrival into the U.S. This entry simplification method will serve both Importer Security Filing (ISF) and entry processing purposes. (See ITT’s Online Archives 11100410 for BP summary on the October 4, 2011 COAC meeting at which CBP officials noted that under simplified entry, the ISF would still be required in the ocean mode.)

ACE and Exports, and a “One System" Approach

According to CBP, at the April 2011 COAC meeting, there was some discussion about ACE and exports and the “one system” approach as recommended by the President’s National Export Initiative (NEI).

ACE and Export Processing

CBP Looking at Enhancing AES to Provide Functionality to PGAs

Per the ITDS Board of Directors recommendation to Congress in December 2010, CBP and other effected agencies are examining the potential for enhancing the Automated Export System (AES) to provide functionality for additional ITDS agencies, including a detailed examination of ITDS agencies’ export requirements. The ITDS Board believes that introducing enhancements to these systems may have the potential to achieve basic single-window functionality for export commodity and transportation reporting on an accelerated schedule

CBP Examining ITDS PGA Export Requirements, Authorities

CBP’s assessment includes an examination of ITDS agencies’ export requirements and the authority under which they would be granted access to confidential export commodity information, current AES functions and access controls and an estimation of the functionality that would need to be added to provide single-window functionality for export reporting and data retrieval. The intent is to create a single export processing platform within ACE that will maintain the current export commodity reporting capability and store the data in ACE/ITDS for authorized agencies and industry to retrieve in a secure environment.

CBP Has Secured Funding for Export Processing Project

CBP has secured funding for the project. Work is anticipated to commence by the end of 2011 and an aggressive timetable is being set for project completion.

SMEs Should See Reduced Costs, Streamlined Processing

Small- and medium-size enterprises should see a significant benefit in reduced costs from improved and streamlined export processing by enforcement officials with access to centralized export data. The creation of a single export processing platform will make significant progress toward facilitating U.S. exports, improving exporters’ compliance with U.S. laws and regulations and achieving the President's goals for the National Export Initiative.

(See ITT’s Online Archives 11092117 for summary of CBP update on plans for automated export processing.)