Automated Commercial Environment (ACE) Update

Automated Commercial Environment (ACE)

February 25, 2016

What comes next?

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 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.

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ACE: what comes next?

• Host: Greg Maddaleni, LCB, Customs Brokerage Manager

• Panelist: Stuart Schmidt, LCB, Trade Compliance Manager

• Panelist: Barb Adamson, LCB, Customs Brokerage

Compliance Manager

Presenters


© 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. 3

Automated Commercial Environment

(ACE)

Agenda

• Review the new dates

• Current status of PGA’s* being implemented

• Other PGA’s

• The PGA Pilots

• Q&A feedback

• On your questions from ACE Webinar I

* Partner government agencies



ACE – key benefits

Automated processes will coordinate filing,

improve data quality and consistency

• Improves import/export compliance

• Increases data richness

• Faster turnaround and fewer delays

• When additional information required

• Timely agency approval

• “May proceed” message across PGA’s



Robust data analytics of your entries

U.S. customs and government agencies will have new tools to query all entries and discover atypical or unusual activities

• Agencies can query across all

data of likely shipments

needing their approval

• Government becomes less

dependent on random

inspections and audits

One common data

mart available to all

agencies

FWS

CDC

FDA

EPA

FCC

ITC

NRC

NHTSA

Etc…

ACE

data

mart

CBP

APHIS

FAS

FSIS

BIS

FTZB

NMFS

ATF

DEA

Common access

across all agencies



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CBP ACE – revised implementation schedule

Dates when usage will become mandatory

Source: http://www.cbp.gov/trade/automated/ace-mandatory-use-dates

Entry Summary

• (01) Consumption

• (03) Antidumping/

Countervailing Duty

• (11) Informal

• (23) Temporary Importation

Bond (TIB)

• (51) DCASR (Defense

Contract Admin.)

• (52) Government -

Dutiable

APHIS (Lacey)

• Incl. cargo release

NHTSA

• Incl. cargo release

March 31 May 28 Summer 2016

Cargo release

FTZ (06) release

Remaining entry

types

Other PGA’s

• Incl. FDA

FCC (July 1)

• FCC 740

suspension



ACE CBP statistics – YE 2015

61.0%65.0% 65.0% 67.0% 69.0%

72.5%76.0%

2.0% 3.0% 5.0%8.0% 10.0% 12.0% 13.5%

Jun Jul Aug Sep Oct Nov Dec

ACE Entry Summaries (% of Total)

ACE Cargo Releases (% of Total)

ACE Submission Rate =

(ACE Volume / ACE + ACS Total Volume)

• ACE entry summary

submission rate for

December rose from 72.5%

in November to 76.0% in

December

• ACE cargo release

submission rate grew from

12% in November to 13.5%

in December

CBP states that 76% of entry summaries and 13.5% of releases are processed through ACE

Source: www.cbp.gov/trade/automated



ACE CBP statistics – YTD January 2016

CBP states that 74.5% of entry summaries and 20.4% of releases are processed through ACE

61.0%65.0% 65.0% 67.0% 69.0%

72.5%76.0% 74.5%

2.0% 3.0% 5.0%8.0% 10.0% 12.0% 13.5%

20.4%

Jun Jul Aug Sep Oct Nov Dec Jan




(ACE Volume / ACE + ACS Total Volume)

• ACE entry summary

submission rate for January

slightly declined compared

to December

• ACE cargo release

submission rate significantly

grew from 13.5% in

December to 20.4% in

January




ACE CBP weekly statistics

Entry summaries began to rise again towards the end of the month

Constant strong increases from cargo releases

75.0% 74.0% 74.0% 76.0% 78.0% 79.0%

16.0%19.0%

23.0% 24.0%28.0% 30.0%

9-Jan 16-Jan 23-Jan 30-Jan 6-Feb 13-Feb




(ACE Volume / ACE + ACS Total Volume)• ACE entry summary

submission rate now at

79%, 3 percentage points

up from January

• ACE cargo releases

increased another 10

percentage points in

January




ACE PGA statistics

Less than 1% of all PGA entries in 2015 were filed through ACE

1249 65

11422

183

284

840

102794

1,605

5,963

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

0

100

200

300

400

500

600

700

800

900

September October November December

# of Uniq. Filers+75% from Nov.

# of Uniq. Importers+196% from Nov.

# of Entry Count+272% from Nov.

Cumulative Total of PGA Entries via ACE

• As of December 31st, 840

importers (served by 114

filers) participated in PGA

pilot programs




ACE PGA statistics

5,192 importers now filing their PGA volume through ACE

12

49 65

11446922 183 284

840

5192

102

794 1,605

5,963

30228

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0

1,000

2,000

3,000

4,000

5,000

6,000

September October November December January

# of Uniq. Filers+311% from Dec.

# of Uniq. Importers+518% from Dec.

# of Entry Count+407% from Dec.

Cumulative Total of PGA Entries via ACE

• As of January 31st, 469

filers participated in PGA

pilot programs




PGA’s Update: FCC

FCC (Federal Communications Commission)

• What is changing

• FCC 740 will be suspended July 1

• FCC may decide in the future to collect data again at time of

import

– If so they will develop a PGA message set

• Impact

• Importers remain responsible to ensure imported product is

compliant with FCC standards

• While FCC reporting remains in place, importers need to be

aware of products requiring FCC data transmission despite

limited tariff flagging by FCC

http://apps.cbp.gov/csms/viewmssg.asp?Recid=21382&page=&srch_argv=FCC&srchtype=&bty

pe=&sortby=&sby=

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Key impacts:

No change

FCC 740

suspension

planned for July 1

http://apps.cbp.gov/csms/viewmssg.asp?Recid=21382&page=&srch_argv=FCC&srchtype=&btype=&sortby=&sby



Key impacts:

Implementation

moved to

March 31st

PGA’s Update: APHIS

Lacey Act

What is changing

• Electronic filing will migrate to ACE

What is not changing

• Data elements are remaining the same

• Website and paper declarations will remain available

Impact to importers

• Minimum impact (filer must assure data compatibility to

ACE)

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Key impacts:

Implementation

moved to

March 31st

PGA’s Update: NHTSANational Highway Transportation Safety Administration

What is changing

• Additional data elements to be added

– Program designation ie: REI, TPE, OFF, etc.

– Specific vehicle information including date of

manufacture

– Fabricating manufacturer

• NHTSA approval letters – each will be numbered and

reported via the ACE message set and may be uploaded in

the CBP Document Imaging System


• Goods subject to reporting

• Independent Certified Importer and Registered Importer

programs

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Key impacts:

Implementation

schedule for

summer 2016

(with remaining

PGA’s)

PGA’s Update: FDA

Medical devices example

What is changing

• ACS migration to ACE

• Intended use code mandatory

• Affirmation of Compliance (AoC) codes move from optional to

“required”

• Manufacturer's Identification Codes (MID) move to actual

name and address

• Device Initial Importer moves to Name and Address (required)


• Continue to use existing product codes

• Continue to use ITACs for image upload

Impact

• Information from importers to filer support the data element

changes

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Other PGA’s and PGA pilot programs

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• ATF

• APHIS

• (USDA Core)

• CDC

• DDTC

• E&C

• EPA

• FDA

• FSIS

• NHTSA

• NMFS

• The remaining PGA’s will migrate to ACE during the

summer of 2016

• Importers can take advantage of the existing PGA

pilot programs to migrate volume earlier to ACE




How to prepare

• Understand your data requirements

• Leverage current PGA pilots in place

• Opportunity to move volume early

• Stay informed about possible other pilots to be launched prior to the mandated

date

• Remain compliant

• Classification

• Parts database

• Recordkeeping



Questions and answers

General (1 of 2)

• Will the implementation of ACE change the duty claims process when an

incorrect tariff number was used upon entry?

• Yes. The ACE environment transitions the paper post entry amendment process to an electronic post

summary correction process

• Has there been any more talk about allowing Non-Filers (Importers) to file a post

summary correction in hard copy or via the ACE portal?

• Currently only ABI filers will be able to file this information

• Our ACE submission got denied because we were missing two-three items. Do

we need to resubmit or can we just email/call someone and give them the data?

• Where an entry has been rejected because of missing data a new entry will need to be submitted with

the correct information




General (2 of 2)

• Will Customs require a FED TAX ID# for all buyers/consignees regardless of

value?

• Yes, with the exception of shipments below $2,500 in value

• When will FTZ entries (type 06) be accepted in ACE?

• FTZ entries are currently accepted in ACE but are not mandatory

• They will become mandatory May 28th (if they don’t contain PGA data)




ISF / MID

• Will ISF be a part of ACE?

– Yes. ISF is part of the automated commercial environment

• Will full name and address be required for manufacturers for all import entries

through ACE? Why?

– Yes. Instead of the MID code, ACE will follow the ISF process where manufacturers’

and other parties’ full address information will need to be received

– CBP is using full name and address cargo release information for targeting

purposes

• I have heard that in general MID requirements, outside of the FDA changes,

are going to be more stringent; do you have any information relating to those

changes?

– To date we are not aware of any additional MID changes




PGA (1 of 2)

• Do current regulations require importers to provide all of these new extra data

elements in ACE?

• Yes. The rule is that when ACE becomes mandatory for a particular PGA, the PGA’s

dataset also becomes mandatory

• Will we still be getting separate releases from Customs and FDA?

• No. Just like in ACS you get a customs release and a separate FDA “may proceed”

• Regarding the “may proceed" will this be a default answer from the FDA once

the information is submitted?

• No. It will remain a two step process where acknowledgement of submission takes

place and then “may proceed” status is transmitted

• Where can we find the FDA Intended Use code for specific commodities?

• FDA Supplemental Guidance for the Automated Commercial Environment

http://www.fda.gov/downloads/ForIndustry/ImportProgram/UCM459926.pdf




PGA (2 of 2)

• How will TSCA (toxic substances) information be reported in ACE?

• Please refer to the EPA PGA message set regarding toxic substances

• How does an importer get involved with a pilot?

• Engage through your filer




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UPS® Customs Clearance UPS® Trade Management Services

UPS® Import/Export

Technologies

• Customs clearance

• Standardized processing

across multiple modes

• Global regulatory compliance

• Document imaging

• EDI solutions

• CSA (Canada)

• Export

• Customer-specific

audits

• Import and export

compliance

assessments

• Classification for

HTS and other

schedules

• Import management

• Export management

• Broker/Forwarder

Management

• Shipper’s Letter of

Instruction (SLI)

• Compliance manuals

• ISF Compliance

• ISA Prequalification

• C-TPAT / AEO / PIP

certification

• Free Trade Agreement

(including NAFTA)

management

• Flex® Global View and

Quantum View®

• Entry tracking (freight and

small package)

• UPS Customer

Collaboration Tool

• UPS TMS Interactive

Portal

• UPS Entry Management

System

• UPS BorderReady®



ACE: getting ready and being ready

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• US Customs is already using ACE for manifests, entry summaries and cargo

releases

• Best practices

• Revisit your compliance practices

• Leverage current available PGA pilots

• Make sure to understand your PGA data requirements

• Next webinar

• March 31st: Exports and ACE

• Contact your UPS sales executive or UPS contact

– Request the UPS Trade Management Services (TMS) questionnaire

Thank you



Automated Commercial Environment

(ACE)

New Dates

• March 31 (previously Feb 28):

• Entry summary mandate

• APHIS (Lacey) and NHTSA

– Cargo release also req’d for these PGA’s

• May 28 (previously Feb 28):

• Cargo release

• Summer 2016:

• Other PGA’s (including FDA)

Source: www.cbp.gov/trade/automated/ace-mandatory-use-dates

Automated Commercial Environment (ACE) Update

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Transcript of Automated Commercial Environment (ACE) Update