Automated Commercial Environment (ACE)

Automated Commercial Environment (ACE)

January 28, 2016

What is ACE?

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: a new IT platform that

changes trade forever

• 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)• U.S. Custom’s new import and export processing

system

• Streamline and automate manual processes by

eliminating paper submissions

• Covers many customs processes including

• Entry summary

• Cargo release

• All manifests

• Export processing

• Visibility

• Interacts with Partner Gov’t Agency (PGA) systems

• ACS (Automated Commercial System) will no longer be

available after 2016



ACE – single window

The President signed an executive order on February 19, 2014 to develop “single window”, which the trade community will use to report imports and exports

TradeU.S.

customs

Gov’t

agency

Pre-ACE flow of information

Gov’t

agency

Gov’t

agency

Gov’t

agency

Documentation

(paper or electronic)Multiple systems



ACE – how it works

ACE provides one system to electronically manage all required entry information

Virtually all electronic or electronic

images

ACE

Participating

gov’t

agencies

(incl. CBP)Trade



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



ACE – how it works

Automated processes will coordinate filing,

improve data quality and consistency

• Improves import/export compliance

• Increases data richness

• Timely agency approval

• Faster turnaround and fewer delays

• When additional information required



CBP ACE – implementation schedule

ACE usage for entry/entry summary process

• November 1, 2015

• Transition period begins: ACE filing of electronic entry and associated entry summary

with or without PGA data is encouraged

• February 28, 2016

• ACE must be used and ACS (Automated Commercial System) will no longer be

available

• FDA, NHTSA, APHIS (Lacey) data must be filed using ACE

• Begin mandatory hybrid filing for remaining PGA’s

• July 2016

• ACE must be used for filing most PGA data (CPSC may be an exception)

• October 1, 2016

• Mandatory use of ACE for all remaining electronic portions of the CBP cargo

processes

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



ACE CBP statistics

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

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

Source: CBP: December 2015 statistics



ACE PGA statistics

Less than 1% of all PGA entries CY 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

• Of the 10 pilots, APHIS (Lacey),

FDA, and NHTSA are currently

mandated for February 28th

implementation

Source: CBP

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


• PGA message set

– A common and comprehensive set of data elements and messaging to support various

entry declarations across the PGA’s

• Designed to enable any authorized declaration scenario regardless of PGA

• Via joint PGA-Trade working group sessions, each PGA identified their required elements

– PGA’s will have to adapt current or develop new systems to receive and analyze the data

elements

• Will the number of data elements being collected increase?

– Yes, in some cases

• Some declarations were completely manual (no prior elements submitted electronically)

• Some elements added to increase an automated “May Proceed” rate

• “May Proceed”

– Filers will receive a “May Proceed” message to all approved ACE submissions

ACE and the PGA’s (Partner Government Agencies)

Why there is change and how it will affect you

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Source: CBP



• Automated processes

– Data submission time constraints removed

– Facilitates automatic acceptance

– Places a premium on data accuracy

• Faster turnaround for complete submissions and exceptions

– New processes allow quicker exchange of information

– Accurate data provides opportunity for quicker approval

• “May proceed” message across PGA’s

– A consistent response from each agency

– Avoiding one way submissions

ACE and the PGA’s

Key benefits

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Source: CBP



Mandatory PGA’s (for February)

FCC (Federal Communications Commission)

• Current process

• Form FCC 740 is filed electronically

– via Automated Commercial System - ACS

• What is changing

• FCC 740 will be suspended

• 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

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Source: CBP.gov; FCC.gov



• Current process

– Plants and plant products declaration form

– Electronic filing via ACS

• Also the LAWGS website and paper options available


– 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)


APHIS (Lacey Act)

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Source: CBP.gov; USDA.gov



• Current process

– Form DOT HS-7

– Electronic filing via ACS

• Information updated to NHTSA’s Motor Vehicle Import Information database


– 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


NHTSA

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Source: CBP.gov; DOT.gov



• Current process

– Declaration via ACS

• Use of product codes

– Document images uploaded via ITACs


– 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


FDA (Medical Devices)

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Source: CBP.gov; FDA.gov



Questions and answers

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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: Summary

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

releases

• Initial 4 PGA’s are migrating to ACE February 28th

• Evaluate your potential impacts

• Contact your UPS sales executive or UPS contact

– Address additional ACE or PGA questions

– Request the UPS Trade Management Services (TMS) questionnaire

• Today’s webinar is part of an ongoing webinar series:

– February 25th: Pre-implementation ACE Update

– March 31st: Exports and ACE

Thank you

Automated Commercial Environment (ACE)

Business

Transcript of Automated Commercial Environment (ACE)