Automated Commercial Environment (ACE) Update May

UPS® Customs Brokerage Webinar Series

May 19, 2016

Update on ACE

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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

UPS® ACE Update

• Panelist

• Stuart Schmidt, LCB

• Trade Compliance Manager

• Panelist

• Joe Brogan, LCB, CES

• Customs Compliance Manager

• Host

• Greg Maddaleni, LCB

• Customs Brokerage Manager

Presenters

Entry, FDA and other PGAs





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ACE Update

Agenda

Current statistics

Timing

What we are learning from Lacey (APHIS), NHTSA & FDA

Benefits, best practices and record keeping

Other ACE news

Q & A





Update on the continued ACE import migration

ACE Submission Rate =

(ACE Volume / ACE + ACS Total Volume)

67%71%

74% 73%

79%84%

95%98%

10% 12% 14%

20%

31%

42%

66%71%

Oct '15 Nov '15 Dec '15 Jan Feb Mar Apr May 14th

ACE Entry Summaries (% of Total) ACE Cargo Releases (% of Total)

Source: www.cbp.gov/trade/automated





Apr 30th

5

2016 ACE timeline

Still awaiting official word regarding remaining PGAs

Mar 31st May 28th

Jul 23rd

Jun 15th

May 31st

Full transition to

new ACE-AES

export platform

Entry summary• Specific

summary types*

APHIS (Lacey)

NHTSA

Cargo release• Specific entry

types*

FTZ (06)

FDA Guide 2.4.1

(mandated)FDA mandated

All remaining cargo

release and entry

types (mandated) • Excluding PGAs

not yet

implemented

Source: CBP.gov

*Applicable entry types:

(01) Consumption

(03) Antidumping/ Countervailing Duty

(11) Informal

(23) Temporary Importation Bond (TIB)

(51) DCASR (Defense Contract Admin.)

(52) Government – Dutiable

(06) FTZ (from May 28)

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.


Implemented

March 31

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What are we learning from Lacey (APHIS)?

Lacey Act

• What has changed?

• Electronic filing will migrate to ACE (previously via ACS)

• What did not change?

• Data elements primarily remain the same

• Impact to importers (what have we learned)

• Email address (associated with contact and phone of wood provider) now required

– Not systematically captured with existing document packet information

– Requires adopting a new process

• Future - reporting measures will expanded






Implemented

March 31

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What have we learned so far from NHTSA?

National Highway Transportation Safety Administration

• What is changing

• Additional data elements added

• Impact to importer and what have we learned?

• New elements may or may not reside with document packet

• Requirement to set up a process to capture additional elements

– REI, TPE or OEI?

– Side view or rear view mirrors regulated as glazing?

– Where can I find glazing manufacturer codes?

– Used parts, who do I report as the fabricating manufacturer?






Key impacts:

Mandated

implementation

June 15th

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What can we learn from FDA?

Despite not yet being mandatory, more than 500,000 transactions already registered (more than all other PGA’s combined)

• What is changing

• ACS migration to ACE

• Certain fields that were once optional are now mandatory

• New data elements to be captured

• Impact to importer and what is changing

• Specific data elements (aligned to commodity type) need to be gathered

• Where elements are not within the entry packet:

– Conduct an “upstream” analysis to verify how to source that information

• Temporary relaxation of four data elements

• Data Quality is key to admissibility






ACE Benefits

• Heightened awareness

• Importer’s better understanding of an agency’s specific compliance requirements

• Decreased opportunity for importer to make an error

• Tighter processes

• Automated processes

• Data submission time constraints removed

• Facilitation of automatic acceptance

• Faster turnaround for complete submissions and exceptions

• New processes allow quicker exchange of information

• Accurate data provides opportunity for quicker approval

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What should be your new process?

What are the missing elements?

Captured in the existing entry packet?

Tied to the specific commodity?

Tied to an entity (e.g., manufacturer)?

Identify missing elements

Create “upstream” procedures for transactional information

Maintain / expand current parts database

Develop new process

Develop implementation timeline

Prioritize and rank the key components

Implement the revised program





Record keeping implications

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Importer

• Required back up information (reasonable care)

Further Assistance

• Help in setting up a compliant record keeping process

Filer

• Their responsibilities (responsible supervision)





What else?

• When are the other agencies going to begin mandating ACE?

• General date remains as “this summer”

• Awaiting a detailed schedule that lays out the specific dates by agency

• Hybrid model (June 15)

• What will happen with ITRAC reporting?

• ITRAC (for the time being) is not going away

• ITRAC contains more complete information because it pulls data from both ACE and ACS

– As the migration completes, the information difference between ACE and will ITRAC

will dissolve

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Questions and answers

UPS® Customs Brokerage and UPS® TMS can assist your migration to ACE

UPS Trade Management Services

• Customer-specific audits

• Import and export compliance assessments

• Shipper’s Letter of Instruction (SLI)

• Import management

• Export management

• Classification for HTS and other schedules

• Compliance manuals

• Export Classification

• Export manual creation and maintenance

UPS Customs Brokerage

• Centralized filing

• All modes / all carriers

• Standardized processing across multiple

modes

• PGA processing

• Document imaging

• EDI solutions

• Global regulatory compliance

• Centralized AES filing process available





The progressing ACE implementation

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• The ACE migration continues with mandated usage for FDA clearances

• June 15, 2016

• UPS Customs Brokerage and UPS TMS can assist your migration to ACE

• UPS online survey assessing ACE import related risk

– Ask today upon checking out

• Contact your UPS sales executive

• Upcoming webinar topics:

• June 30: Trans-Pacific Partnership (TPP)

• July 28: Global compliance management

• August 25: Global visibility management

Thank you

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Automated Commercial Environment (ACE) Update May

Business

Transcript of Automated Commercial Environment (ACE) Update May