CBP reveals new dates for ACE post-release rollout

U.S. Customs and Border Protection on Thursday released its newest schedule for delivering the remaining post-release capabilities in its new umbrella information technology system, the Automated Commercial Environment.    U.S. Customs and Border Protection (CBP) on Thursday released its newest schedule for delivering the remaining post-release capabilities in its new umbrella information technology system, the Automated Commercial Environment (ACE).
   CBP had initially planned to deploy this final phase of its ACE rollout on July 8, but a week before decided to hold off due to its desire to conduct more testing. This was the fourth time that this stage of ACE deliverables was delayed by the agency.
   The ACE post-release capabilities will include liquidation, reconciliation, drawback, duty deferral, statements, collections and the Automated Surety Interface (ASI). The system promises to move these processes off the agency’s aging Automated Commercial System, as well as eliminate lingering paper-based processing performed by CBP and the import industry.
   “With the exception of the collections functionality, these remaining post-release capabilities are ready and available for trade testing,” CBP said in a statement.
   “Since the collections capabilities are largely inward facing, the replanned deployment strategy will enable us to separate collections and deploy the other post release capabilities of ACE core using a phased approach,” the agency explained. “Developers are working software changes that will allow ACE deployment of these post release capabilities, while also ensuring that they continue to interface seamlessly with collections in the legacy system.”
   The new schedule for ACE post-release delivery includes three dates:
     • Sept. 16—Non-ABI (Automated Broker Interface) entry summary/lineless (for CBP only), duty deferral, e214 (electronic foreign trade zone admission), and manufacturer identification creation.
     • Dec. 16—Statements.
     • Feb. 24, 2018—Reconciliation, ACE core drawback and Trade Facilitation and Trade Enforcement Act (TFTEA) drawback, liquidation and ASI.
   Between February 2018 and February 2019, the trade will have the option to file either core drawback or TFTEA drawback, CBP said.
   Core drawback includes consolidation to entry type 47, submission of entry drawback package electronically for claims, systems validations, integration with post release processes, and improved systems controls. It also does not require line-level reporting, CBP said.
   The new TFTEA drawback includes substitution based on the eight-digit Harmonized Tariff Schedule (HTS) or Schedule B number, requirement to file all drawback claims electronically, recordkeeping requirement of three years from date of liquidation, all claims due five years from date of import, reliance on documents kept in “normal course of business,” and requires line-level reporting, the agency said.
   Drawback specialists are anxious about the simultaneous ACE rollout of both core and TFTEA drawback, as CBP iterated that it will deploy TFTEA drawback capabilities in accordance with the legislative mandate of Feb. 24, 2018.
   “When you have any new system that is being developed, regardless of how much testing you’ve been able to do, there will be kinks to work through when the system goes live, especially when the new system has new data elements and validations that have never processed live data,” said Dave Corn, vice president of drawback specialist Comstock & Theakston Inc., and co-chairman of the American Association of Exporters and Importers (AAEI) Drawback and Duty Deferral Committee.
   “The ideal situation would have allowed for core drawback to go live in ACE before the TFTEA deadline (on Feb. 24, 2018), as there will be overlap between the core drawback system and the ACE system that is being programmed to allow for the changes in the new drawback law. With two systems that need work, it will be a lot to handle at once,” he said.
   Realizing this challenge, CBP has told AAEI and the National Customs Brokers and Forwarders Association of America (NCBFAA) that it will work closely with their respective drawback committees during the next several months to smooth the transition.
   Despite the continuous fits and starts related to ACE over the years, the importer and customs broker industries have appreciated CBP’s efforts to work closely with them.
   “We are pleased with CBP’s approach of not releasing any new programming prematurely, minimizing the risk of bugs and errors,” Geoff Powell, NCBFAA president, told American Shipper. “Collections is the most critical piece of functionality and therefore must be released without any programming errors.”
   Early on, the NCBFAA recommended that CBP release drawback, reconciliation, liquidation and collections separately as each of these functions posed different potential issues. 
   “CBP initially thought this might be unattainable due to the complex interconnectivity of these post release functions, but we are pleased they were able to overcome that,” Powell said. “When we spoke with CBP in the beginning of June about the July 8th deployment, they raised the possibility of delaying the deployment. We pointed out that if it was delayed beyond September, the timing could impact many of our members due to reconciliation and drawback time limits, and could further impact those members that are heavily involved with the Christmas rush and would not have resources available for deployments in October and November. We are very pleased that CBP was able to find a solution to break them out separately.”  
   In the months ahead, CBP said it will train its personnel and provide them with updated information on each ACE capability prior to the deployments. The agency has also promised to keep the importers and customs brokers informed throughout the new deployment schedule.
   “Over the last couple of months, CBP said they would advise the trade through a Federal Register notice (FRN) of the proposed new dates,” Powell said. “I appreciate CBP’s outreach recently directly with the trade to properly outline the schedule, be available for answers and be open to any meetings with the trade to ensure a smooth transition, as opposed to just using the FRN vehicle.”