ACE Update and Broker Benefits Agenda

ACE Update and Broker Benefits

Agenda § Overview § Summarized ACE Timeline § ACE Project Priorities § ACE Trade User Metrics § Broker ACE Account Benefits § Value of Reports – Broker Perspective § Simplified Entry § Post Summary Correction Overview and Policy § ACE e-Manifest Rail and Sea (M 1) § ACE Portal Application/ACE Resources § Questions § Presenters’ contact

ACE Project Priorities Priority Delivered Category Remaining Priority Rank Functionality ACE e-Manifest: Truck 1 ACE e-Manifest: Rail & Sea Air Manifest Integration of Multi-Modal Manifest Vessel Management System 2 A 2 B Document Image System 2 C PGA Message Set 2 D PGA Interoperability 2 E Cargo Release Simplified Entry, Phase I Future Phases of Simplified Entry ACE Accounts and Reports Periodic Monthly Statement Entry Summary (Type 01 and 11) Entry Summary Antidumping/Countervailing Duty Entries (Type 03) Post Summary Corrections 3 Entry Summary Edits

ACE Project Priorities Priority Delivered Category Remaining Priority Rank Functionality Remaining Entry Summary Types Mail Entry Writing System Importer Activity Summary Statement (Simplified Summary) Drawback Entry Summary Reconciliation Protest Entry Liquidation Exports 5 Financial Exports Integration of all financial capabilities in ACE 4 Priority fixes (Problem Reports) Ongoing fixes and enhancements Operations and Maintenance ACS re-hosting AES re-hosting Reducing O&M costs Transition to target architecture SEI assessment and integration planning Other System Migration (LIMS, SEACATS, etc. )

ACE User Metrics - Trade § As of May 2012 § There are 20, 397 Trade Accounts in ACE § There are now 81 certified filers in ACE and 61 of them filed entry summaries in ACE in May 2012 § 215, 369 Entry Summaries were filed in ACE in May 2012 § The above total represents 8. 8% of eligible Entry Summaries. The eligible condition is met when both of the following are true: the filer is certified in ACE; and the Entry Summary is Type 01, 03, or 11 § All certified filers (Importer/Brokers) are encouraged to increase their entry summary filings in ACE

Broker ACE Account Benefits § Brokers establishing their free ACE Portal Account enjoy the following benefits: § Offer periodic monthly statement to qualified importers § Pay duties and fees on eligible entry summaries by the 15 th work day of the following month § Run over 125 customized transactional and financial reports § Create blanket declaration records in ACE for clients without ACE Portal accounts § Respond to post summary request for documents § Search, display and print AD/CVD case information and AD/CVD messages § Comply with 19 CFR 111 reporting responsibilities § Access to link to view Importer Security Filing reports § Create entry banks

Value of Reports: Broker Perspective § Brokers can: § Monitor their compliance with import requirements § Monitor the compliance of their import clients § Obtain verification of Periodic Monthly Statement activity including: § End of month accruals for unpaid duty § Cash flow projections § Compare CBP data with their own data § Provide customized reports to their clients

Key ACE Reports § Filer or Importer Quick Views § Entry Summary Aggregate and Detail Reports § CBP Form 28, 29, 4647 Status Report § Periodic Monthly Statement Reports § Periodic Statement Quick View – Broker § Periodic Statement Quick View – Importer § Multi-Modal Manifest Reports § BOL Status Report § In-Bond Details Report

ACE Reports Data Refresh Periodic Monthly Statement Data Refreshed Hourly Multi-Modal Manifest Data in the Trade Reporting Folder Refreshed Every Two Hours Compliance Data Refreshed Monthly All Other Report Data Refreshed Nightly

Simplified Entry (SE) § Simplified Entry is the first phase of Cargo Release in ACE § The pilot on SE was conducted at the ports of Indianapolis, Chicago, and Atlanta (May 29, 2012 – June 4, 2012) § Seven trade participants successfully filed simplified entry transactions followed by successful ACE entry summaries § Future calls with the trade will take place to determine how CBP and trade will proceed with the deployment § CBP is discussing the next steps for SE deployment with the pilot participants, while program enhancements are implemented

ACE Post Summary Corrections (PSC) Overview § The capability to file Post Summary Corrections was delivered on June 4, 2011. § The Post Summary Correction (PSC) transaction: § Fully replaces the existing ACE entry summary as a new version § May be submitted for ACE entry summaries, types 01 and 03 only § Replaces the existing Post Entry Amendment (PEA) hardcopy process for ACE entry summaries § Provides the ability for the trade to submit corrections to ACE entry summaries via Electronic Data Interchange (EDI) § Is processed through all existing validations including Census warnings § May be subject to team review

ACE Post Summary Corrections Overview § Trade Benefits: § Electronic amendment process, via ABI, for ACE entry summaries § Allows electronic corrections to ACE Consumption and Antidumping/Countervailing Duty entry summaries § Paper Post-Entry Amendments eliminated for ACE entry summaries § Streamlined acceptance process § Uniform process for trade to submit corrections § Nationwide visibility for CBP § Creation of PSC filer § Creation of PSC reason codes § Enhanced reporting functionality.

ACE Post Summary Corrections Policy Purpose § Enables a filer to make electronic corrections, prior to liquidation, on ACE entry summary data presented to and accepted by U. S. Customs and Border Protection (CBP) Basic Rules § May be filed 270 calendar days from date of entry § Cannot be filed within 20 calendar days of the scheduled liquidation date § Applies only to ACE entry summaries

ACE Post Summary Corrections Policy § Full entry summary replacement § CBP will accept as the importer’s assertion that current version is correct § Data subject to the same edits and validations as standard ACE entry summary § CBP will retain entry summary versions § “Agree/Disagree” process eliminated § CBP will not review every PSC § PSC subject to same targeting, team review process as current ACE entry summaries § No limit on number of PSCs filed within allowable time frame § Eliminates quarterly Post Entry Amendment (PEA) requirement – Filer may send changes as they are discovered

ACE Post Summary Corrections § As of June 14, 2012, 2734 Post Summary Corrections (PSCs) have been submitted by 25 different filers § For additional information on PSC rules refer to section 9 in the “Business Rules and Process Document (Trade) posted on CBP. gov

e-Manifest: Rail and Sea Target Date Milestone March 29, 2012 Announcement via Federal Register Notice: • ACE as the only CBP-approved electronic data interchange (EDI) through which rail and sea manifests may be transmitted • Six-month transitional period to allow for any remaining rail and sea filers to complete the transition to ACE before decommissioning rail and sea capabilities in the Automated Manifest System (AMS) September 29, 2012 • Planned decommissioning of AMS for rail and sea manifest • Planned transition to ACE for filing of all rail and sea manifests

e-Manifest: Rail and Sea Attn: Filers § The e-Manifest: Rail and Sea Federal Register Notice announced the six-month timeframe for rail and sea carriers to transition to ACE and the decommissioning of AMS for rail and sea manifests § There are MANDATORY changes to functionality that impact ABI software developers and their users. These changes are found in ABI Application Identifiers QP and WP (In-Bond), BD (Broker Download), and NS (Status Notifications) § If the required programming changes are not made when this transition takes place on September 29, 2012, EDI messages for ocean and rail manifest and ABI in-bond transactions will fail

ACE e-Manifest Highlights § Enable CBP to place and remove holds at the conveyance, container and master bill level § Inform carriers which Participating Government Agency (PGA) has held their merchandise § Extend Broker Download to the sea environment; § Increase number of possible Secondary Notify Parties to 25 § Allow carriers to create list of trade partners who are authorized to use their type two custodial bond through the ACE Portal, i. e. In-Bond Authorization

ACE e-Manifest Highlights cont. § Allow carriers to create and maintain sea conveyance information through the ACE Portal § Send a status notification of disposition code “ 95” to Carriers and subsequent Secondary Notify Parties such as Port Authorities when a Paperless Master Inbond (IT, T&E, IE) has been deleted by the carrier § Provide 12 new reports for rail and sea carriers along with seven new reports for brokers and two for importers § Provide the ability to share customized reports with any user within the portal account

ACE e-Manifest Highlights cont. § New rules and edits will also be in place with the deployment of e -Manifest: Rail and Sea. Changes include the following: § A Unique Voyage Indicator can be reported in the original ocean manifest submission § Place of receipt and foreign port of lading will become mandatory reporting data elements § Harmonized Tariff (HTS) numbers will be edited for validity to the sixth position § Valid bonds will be edited when carriers request in-bond moves or Permits to Transfer (PTT)

ACE e-Manifest Highlights cont. § Manifest unit of measure will be validated in both modes of transportation (currently only in rail) § Hazardous Material Code Qualifier, Flashpoint Temperature, Flashpoint § Temperature Unit of Measure and Negative Indicator will be edited for valid data § Quantity field will be added to the PTT (TI/356) transaction set to allow a PTT to be optionally reported at less than full bill quantity § With the implementation of M 1 functionality ACE will become the new system of record for all rail and sea manifest data filed with CBP

Carrier ACE Account Benefits § Ocean and Rail carriers establishing their free ACE Portal Account enjoy the following benefits: § View continuous bond information § Control and maintain use of type 2 custodial bonds through the in -bond authorization feature § Create, view and maintain ocean conveyance information that is on file with CBP § Send copies of shipment records to brokers through broker download § View and maintain account information § Run customized reports covering manifest, equipment, bill of lading and in-bond data refreshed every two hours and well as reports refreshed nightly § Access to ACE Reference files including UNLoc Code

Rail and Sea Carriers § Take Action Now to Be Prepared § If you are not yet filing data via ACE e-Manifest: Rail and Sea, nor testing to become certified, the time to take action is NOW § On September 29, 2012, ACE will be the only CBP approved EDI for transmitted CBP required advance information for ocean and rail cargo § As of May 31, 2012, 88% of ocean carriers and 47% of ABI software developers impacted by the transition to M 1 have either completed or are in the on-boarding process § If you are part of the 12% of the ocean carriers or the 53% of the ABI software developers who are NOT yet testing ACE Rail and Sea Manifest, NOW is the time to contact your Client Representative for assistance

ACE Portal Account Application § Information on establishing an ACE Portal Account can be found on CBP. gov: § § Select “Trade” Select “Automated Systems and Operational Support” Select “ACE: Modernization Information Systems” Select “ACE Portal Application and Program Participation” § The following selections are available: § ACE Application Form § ACE Secure Data Portal Account Application Instructions § ACE Secure Data Portal Account Application Demo

ACE Resources: Contacts for ACE Portal Support The Technical Support Center (TSC) at 1 -866 -530 -4172 or via email at CBP. TECHNOLOGY. SERVICE. DESK@CBP. DHS. GOV.

ACE Resources Portal Applications The application to request your free ACE Portal account as well as instructions and tutorials can be found on CBP. gov http: //www. cbp. gov/xp/cgov/trade/automated/modernization/ace_app_info/ http: //nemo. cbp. gov/ace_online Web Based Training for each release Cargo Systems Messaging Service A subscription based, broadcast message system for users of CBP automated commercial trade system http: //apps. cbp. gov/csms/ www. CBP. gov/Modernization • ACE Fact Sheets • Training and Reference Guides • Federal Register Notices • Presentations of Capabilities

Questions?

Presenters’ email contact § Drusilla. Clark-Addison@cbp. dhs. gov and telephone number 843 -579 -6552 § Martita. Shortridge@cbp. dhs. gov § Elizabeth. J. Laxague@cbp. dhs. gov § Neila. M. Venne@cbp. dhs. gov § Jeffery. J. Baker@cbp. dhs. gov § Seth. N. Fisher@cbp. dhs. gov § Eddie. W. Edmonds@cbp. dhs. gov § Steven. Cain@cbp. dhs. gov