Industry, Brokers Set For Smooth ACE Transition in Coming Months, Says Kerlikowske

MIAMI -- There's no indication that importers and brokers will not be prepared for the rapidly approaching Automated Commercial Environment deadlines, said CBP Commissioner Gil Kerlikowske in a sit-down interview with International Trade Today on Feb. 24 at the International Chamber of Commerce and U.S. Council for International Business symposium. Kerlikowske said he expects only a “tiny” percentage of traders and brokers will not be ready for the required use of ACE. As of May 1, CBP will require ACE for all electronic manifest filings, while all electronic cargo release and entry summary filings will be required in ACE as of Nov. 1.

CBP outreach has been sufficiently thorough and far-reaching, said Kerlikowske. “There should be no doubt or no question in the industry’s mind what is expected of them,” said Kerlikowske. “And all of the feedback I’ve gotten from them is that they understand it, they recognize it, and they’re fully prepared.” CBP and the private sector are working “hand in glove,” he said, adding that the trade community should contact CBP quickly if concerns remain. Still, Kerlikowske has said industry and government face ACE transition challenges (see 1502230013).

Importers and brokers who don’t have ACE software in place by the deadlines will be forced to file on paper, said CBP Senior Trade Advisor Maria Luisa Boyce, who also took part in the Feb. 24 interview. That could fuel paperwork burdens at some ports of entry. There may not, however, be concrete plans laid out to cope with missed deadlines, Kerlikowske indicated. “I can’t say I’ve looked at certain contingency plans,” he said. But “I’d be foolish to say we wouldn’t have some contingency plans in place.” Kerlikowske said the agency would be able to allocate targeted resources if need be.

Industry only stands to benefit from the transition though, Kerlikowske said, pointing to speed in filing and greater transparency in the process, including added ability to identify points of cargo hold-up. “As much as a benefit as it is for us and other government agencies to look at that single window, and say ‘yes it’s being held by FDA,’ the same can happen with these companies,” he said. “They can look at it and say ‘well gosh, this is being held by FDA, and there’s a form that’s needed’ or something like that, instead of calling up, trying to filter down and say who’s holding it and why ... so now they can look at the screen just like we can.”

President Barack Obama issued an executive order one year ago to require implementation of the International Trade Data System, the platform that encompasses ACE and brings all 47 commercial screening agencies into the single window, by the end of 2016 (see 14021928). Kerlikowske said some members of the trade community have questioned him about the readiness of all those agencies by the executive deadline, but said there aren’t expected bureaucratic obstacles for those agencies. “If you’re a cabinet secretary or you’re a high-level official at any of these agencies, and you see an executive order from the president that says everybody should be on board and everybody should be doing this, in my old job, I’d call that a clue,” said Kerlikowske.

Despite some question as to how quickly the other agencies will be able to update regulations to accommodate electronic filing (see 1410220035), Kerlikowske expects the changes to go smoothly, as they have elsewhere in the government. “A lot of this stuff has been overcome in other areas throughout government where before it might have said paper, and then electronic filings were acceptable,” he said. “It might have said signature, and then electronic signatures were applicable.”

The commissioner also chimed in on legislation pending on Capitol Hill. Customs Reauthorization will strengthen the agency, Kerlikowske said. “Would it be helpful and would we want to work with members of Congress to have an authorization bill for CBP? Yes,” he said. “It makes [authorization and appropriation] very specific to an organization that’s now been around since 2003," the year CBP was created as part of the Department of Homeland Security. Kerlikowske also reiterated his criticism of the looming Department of Homeland Security funding lapse, as he did earlier in the day in a speech (see 1502240031).