CBP Pushes Back Mandatory Use Dates for ACE

CBP made some major changes in its timeline for requiring use of the Automated Commercial Environment, allowing for Automated Commercial System filing several months beyond the original mandatory use date, the agency said Aug. 31 (here). The original Nov. 1 deadline will now begin a "transition period" where use of ACE is "encouraged," with more ACE requirements phased in through July. The changes came in response to a number of industry concerns recently lodged with CBP (see 1507290066 and 1507150063), as well as shifts in resources related to the move to ACE for Air Manifest (see 1506110007). CBP said it still plans to finish the ACE transition by Oct. 1, 2016 (here), ahead of the completion of the International Trade Data System by the end of 2016, as required by a 2014 White House executive order (see 14021928).

Along with the Department of Homeland Security, the Border Interagency Executive Council, and the White House, CBP "has been actively tracking and assessing stakeholder readiness for the mandatory filing of all electronic entry and entry summaries in ACE," CBP said. "While significant capabilities have been deployed to date, concerns about stakeholder readiness have necessitated a reassessment of our current timelines."

Nov. 1, originally the date for required use of ACE for entry summary and cargo release filings, will now begin a transition period for ACE testing, said CBP. During this period, "use of ACE is allowed and encouraged for electronic entry and corresponding entry summary filings for entry types 01, 03, 11, 51, and 52 with or without [Partner Government Agency] data," it said. The "majority of the ITDS technical capabilities for entry and entry summary" will be available as of Oct. 31, "by which time the remaining capabilities for Food and Drug Administration and for APHIS will have been released for testing and adoption by industry," said Debbie Augustin, head of the ACE business office, during an Aug. 31 conference call. CBP and the PGAs will closely monitor industry progress during the transition period, she said.

Beginning Feb. 28, ACE will be required for electronic entries and entry summaries, said CBP. Also, electronic filers will need to use ACE for Food and Drug, Administration, National Highway Traffic Safety Administration, and Animal and Plant Health Inspection Service Lacey Act data, said CBP. Next, CBP will publish a final rule on an unspecified date in July, after which ACE will be required for several other Partner Government Agencies, including the Environmental Protection Agency and Drug Enforcement Agency, it said. The ACE requirement will also apply to Fish and Wildlife Service data as long as FWS gets necessary regulatory revisions in place by the time of the CBP final rule, CBP said.

The final rule would eliminate the use of "hybrid filings," which are part electronic, part paper filings, said CBP Assistant Commissioner for the Office of International Trade Brenda Smith. "Because of the operational costs associated of handling information in two different forms, we are working to streamline those processes," she said. Currently, most filings come in a hybrid form, she said. CBP plans to propose a rulemaking ahead of the final rule in early 2016, Augustin said.

CBP also plans to ratchet up ACE-related training, said Todd Owen, CBP Assistant Commissioner for the Office of Field Operations, while speaking on the call. There's already been some webinars for CBP officers and the agency will next send out employees to the ports to provide some "hands on training," he said. The NCBFAA is cataloging some issues and the locations that seem to need more attention, said Owen.

Several factors were behind the decision to delay the ACE milestones, said Smith. The problems in ACE air manifest forced CBP to move some of its resources, which led to a "couple of week delay in the rollout of the capability" of some ACE capabilities and PGA pilots, she said. The PGAs, which indicated to CBP that some more time for preparing was needed, also affected the changes, said Smith. Most of the remaining risk of the ACE rollout now sits with the PGAs, said Charles Armstrong, assistant commissioner for the Office of Information and Technology.

Involved trade groups were appreciative of the updates. “CBP has demonstrated again that the Agency truly listens to their partners in the trade community and is dedicated to ensuring that changes to Government policies and regulations are operationally feasible and beneficial for the U.S. economy,” said Michael Mullen, Express Association of America executive director in an email. “By allowing a phased implementation of ACE entry capabilities between November 2015 and February 2016, CBP will facilitate the ability of importers and logistics firms to manage the holiday surge more efficiently and achieve a smoother transition to ACE,” he said. The National Customs Brokers & Forwarders Association of America and Airforwarders Association also applauded the revised timeline.