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CBP Posts COAC Documents, Including ACE 2.0 Update

CBP will in 2023 begin testing two projects under the DHS Silicon Valley Innovation Program (SVIP) “that will connect CBP with trade users,” the agency said in a document released ahead of an upcoming meeting of the Commercial Customs Operations Advisory Committee. The projects are being used to “verify some ACE 2.0 concepts” to inform CBP’s development of ACE 2.0, “which could begin as early as 2025,” CBP said.

As previously announced (see 2205040064), the five SVIP projects cover steel, pipeline oil, natural gas, food safety and e-commerce, and the trade-facing tests in 2023 will cover “the first two.” The steel project is intended to assist with origin compliance under USMCA and improving product identification, CBP said. The pipeline oil project will “affirm free trade status no matter how many times oil is sold on the open market,” and the natural gas project “will facilitate origin determination and eliminate goods entering from prohibited countries,” the agency said.

A project on food safety will “track perishable goods from farm to import, reduce importer waste, and allow identification of packing materials used in shipping food products,” and a project on e-commerce will “enhance traceability of goods bought and sold by online retailers and ensure that importers comply with CBP and other partner government agencies requirements.”

All five projects test the feasibility of incorporating distributed ledger technology, though CBP has moved away from its prior emphasis on blockchain (see 2104230003), and is instead emphasizing interoperability, “which allows all types of systems to participate in supply chain activities without forcing industry into one technology,” the agency said.

The trade-facing testing of the two SVIP programs will be followed by testing in 2024 on the ability “to transmit data to PGAs, which will produce an upgraded single window,” CBP said. “ACE 2.0 is an agency priority and CBP is actively working to secure the necessary funding to support the acquisition,” it said.

CBP posted the following documents for the Dec. 7 COAC meeting, to be held in College Park, Maryland:

Administrative

Intelligent Enforcement

Next Generation Facilitation

Secure Trade Lanes

Rapid Response