ACE/ITDS mirrors global automation efforts

  The countdown to a new, simpler way of doing business with U.S. Customs and other government agencies when it comes to cross-border trade is getting closer. 
   I’m talking about the Automated Commercial Environment and International Trade Data System. Think of them as new computer systems and software programs designed to take the red out of red tape.
   ACE is the new backbone of Customs and Border Protection’s trade processing and risk management activities and the key to many of its transformation initiatives the past four years, such as simplified entry/cargo release, Centers for Excellence and Expertise, Air Cargo Advanced Screening, a redesigned trusted trader program and greater facilitation of exports. It consolidates and automates border processing, and provides a single access point to connect Customs, partner government agencies and the trade community. Passing paper back and forth will largely become a thing of the past. And the trade community gets online access to their CBP transactional data that can be used to improve compliance and reduce duty liability.
   CBP officials realized years ago that automating inefficient processes wouldn’t make much difference in reducing their workload or the cost to industry of conducting international trade. So they worked closely with industry representatives to modernize and streamline many policies and procedures to take advantage of ACE.
   May 1 is the deadline for mandatory use of ACE for all electronic filing of manifests. The date will mostly impact air carriers, since truck, rail and ocean manifests are already being filed in ACE.
   The big date for importers and brokers is Nov. 1. That’s when all cargo release and related entry summary filings—the forms 3461 and 7501—must be filed in ACE. 
   By Oct. 1, 2016, all features of ACE supporting any kind of trade transaction with Customs should be completed and CBP will turn off the legacy Automated Commercial System. And by the end of 2016 all agencies are supposed to be able to do business through ITDS.
   ITDS will enable traders to submit import/export data to Customs, which will disperse the information to the appropriate government agencies based on pre-defined universal message sets and special data needs of particular agencies so as to reduce the need for duplicate filings. ACE/ITDS will be used by federal agencies to determine admissibility and communicate decisions among each and with filers.
   It should be noted ACE is not unique in the world of border management. There is a global effort led by the World Customs Organization to standardize electronic data formats and import and export procedures. Most countries, for starters, now accept import declarations in electronic format. The ultimate goal is for customs authorities to exchange import and export data to reduce redundancy for all involved and improve enforcement.
   Several customs authorities, such as the European Union, Japan, Singapore, South Korea and Mexico, have developed systems similar to ACE. Canada is also developing its “single window.”
   Mexico, in fact, is further along than the United States. Its single window for several agencies has been processing trade since 2011 and saved the country money.
   “Initiatives like the ‘single window’ need to be harmonized throughout the region,” CBP Commissioner Gil Kerlikowske said in a Nov. 18 address to the Council of the Americas, according to a copy of his speech. “This is why we are looking at an interoperability model that will be compatible among all countries in our region, and with the world, simplifying this process for companies doing business on a global scale.”
   Although the migration to ACE from existing middleware systems represents a major challenge for U.S. customs brokers, it is nothing compared the European Union’s Import Control System, according to supply chain software provider Kewill.
   “ICS involved significantly greater complexity than ACE because, although the European Union may have ‘free’ borders and a common Customs policy, each individual country still retains its own Customs authority, and ICS therefore effectively had to be implemented separately for each individual country,” Chelmsford, Mass.-based Kewill said in one of its blogs last year. “Importing into the USA means complying with ACE requirements as laid out by CBP—one system, one format. Importing into the EU involves submitting the required data in advance to the first port of entry in the format they require—multiple systems, multiple formats.” 
   CBP has done a good job minimizing technical glitches and inflexible procedures that could have caused cargo delays. The adoption of ICS in the EU had some initial hiccups, but there are no widespread reports of long-term slowdowns in processing times at ports today, according to Kewill. 
   “The worst case has been that electronic complexity replaced paper complexity and in reality the switch to automated procedures brought at least a degree of efficiency benefits.
   “Already, ACE is looking like a walk in the park by comparison. It’s one set of data requirements and processes, issued by one Customs authority and we already know when and how it’s happening,” the firm said.

This column was published in the February 2015 issue of American Shipper.