1 Automated Commercial Environment (ACE) and Cargo Release/Simplified Entry Update New York/New Jersey Brokers June 5, 2013 Monica Crockett, Director,

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Automated Commercial Environment (ACE) and Cargo Release/Simplified Entry Update

New York/New Jersey Brokers

June 5, 2013

Monica Crockett, Director, Entry Summary, Accounts & Revenue

ACE Business Office

U.S. Customs and Border Protection

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Making the Single Window to Trade a Reality

Critical to Multiple Missions and Priorities

National Export National Export Initiative Initiative

Support U.S. manufacturing growth by facilitating exports

Single WindowSingle Window

Security and Security and SafetySafety

Provides new tools for anti-terrorism and trade

targeting and risk segmentation

• Increased USDA food seizures 30 fold during first year of ACE use

• $46M/yr savings to CBP from ACE; able to dedicate more time to suspect cargo

• Saving ocean export manifest participants ~$900K/year in reduced courier costs

One U.S. One U.S. Government at Government at

the Borderthe BorderStreamline interagency

processing through collaboration and less

paperwork

• Four Partner Government Agencies (PGAs) receiving automated data via ACE PGA Interoperability

U.S. Economic U.S. Economic CompetitivenessCompetitivenessReduce transaction costs

in U.S. supply chain

• Up to 33% faster truck processing with ACE

• As high as 68% of duties and fees paid interest free via ACE; significant cash flow benefits to filers

Global Supply Global Supply Chain StrategyChain StrategyStrengthen the global

supply chain to protect U.S. interests and

enhance prosperity

• Pre-arrival data linked and available via ACE

Automated Commercial Environment Automated Commercial Environment

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What is ACE?

Pre-ArrivalExpands data available to assess safety, security,

compliance• Air Manifest

• Conveyance Mgmt• PGA Reporting• PGA Hold Requests• Entry Integration w/ truck• Entry integration w/ air • Truck integration w/ SE• PGA Holds• Entry integration w/ sea• Entry integration w/ rail• PGA Integration• Entry Corrections/

Cancellations

• Simplified Entry Pilot• Document Image System • PGA Interoperability

• Initial ES Types• AD/CVD Entry Summaries• AD/CVD Case Mgmt• Automated Forms• Post Summary Corrections

• Export Truck Manifest• Export Rail Manifest• Export Sea Manifest• Export Air Manifest• AES Re-Engineering

• DIS Sea Manifest Pilot

• Bonds and Bond Processes• Creation/Issuance of Periodic

Monthly and Daily Statements• Financial Components of

Entry Liquidation and Drawback

• Fines and Penalties Interface (SEACATS)

• Importer Record Maintenance• Red Flag Reporting

• Periodic Monthly Statement

68% duties & fees collected via ACE

22% of Entry Summaries filed in ACE

More than 76,000 Simplified Entries filed

Reduced courier/printing costs saving each

participant ~$900K/year

• Rail Manifest• Sea Manifest• Truck Manifest

30% faster truck processing with ACE

• ES Validations• Liquidation• Remote Location Filing • Quota and Protest• Remaining Entry Types

ArrivalEnables speedier release of legitimate imported cargo

Post ReleaseModernizes data requirements

to validate trade law compliance

ExportsModernizes processes and

enhances assessment of cargo for safety, security, compliance

FinanceStreamlines payment

mechanisms

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NOTES: * The Product Backlog is a list of all core trade functionality for development in current priority order . Schedule is subject to change as priorities for backlog items change. High confidence in projects scheduled for the next six months. All core functionality is identified in ACE Product Backlog.

Next items on ACE Prioritized Product Backlog *SE integration with In-bondOcean/Rail Manifest integration with SECargo Release data build outES Validation - Duty CalculationsExport Manifest foundationPGA Message improvementsABI Profiles

Sprint 1

Sprint 2

Sprint 3

Sprint 4

Sprint 5

Sprint 6

Sprint 1

Sprint 2

Sprint 3

Sprint 4

Sprint 5 Sprint 6

AES Re-engineering Team 1

PGA Message Set

Initial ES Validations

Team 2

Team 3

Team 4

Agile Pilot

Entry Corrections / Cancellations

PGA Message Set (continued)

ES Validation - Classification

Entry Corrections / Cancellations (continued)

ACE Development Roadmap

Agile Pilot – Increment 1January 31 to May 7, 2013

Increment 2May 8 to August 6, 2013

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Began January 2013 to test CBP’s ability to build ACE using Agile development methodology Smaller pieces of functionality more frequently, resulting in a more flexible, user-focused

development process

Development underway with 4 teams; will scale to 9-12 teams by 2014

CBP has successfully developed, tested, and demonstrated: Electronic Entry Corrections and Cancellations

• Reduces time and cost associated with former paper process

• Allows officers to assess risk associated with data change

Partner Government Agency (PGA) Message Set

• Facilitates more rapid decision making by multiple agencies

• Successfully integrated PGA Message Set with the Environmental Protection Agency

Initial Entry Summary Validations

• Increases integrity of data submitted and compliance of revenue collected

• Identified by the trade community as key to their adoption of ACE entry summary filing

Work is ongoing to re-engineer the Automated Export System (AES) Completion planned for end of 2013 calendar year

Development Process

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Core functionality will be completed within approximately three years

Draft deployment plans are being created for stakeholder feedback December 31, 2015: Mandated use of Manifest and Cargo Release in ACE

December 31, 2016: Mandated use of all remaining ACE features

Stay engaged, migrate NOW

More than 99 percent of entry summaries can be filed in ACE. Numerous benefits: New ACE capabilities available only for ACE entry summary filers

Remote Location Filing for Type 03 Entries

Electronic Census Overrides

Electronic Post Summary Corrections

Transaction data available through Enhanced Reports

Getting started is easy: Visit us online at ww.cbp.gov/ace

Call your Client Representative

Call your Service Provider

Don’t Wait – Migrate

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ACE Stakeholder EngagementSprint

1Sprint

2Sprint

3Sprint

4Sprint

5Sprint

6Sprint

1Sprint

2Sprint

3Sprint

4Sprint 5 Sprint

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CSN CSN CSN CSN CSN CSN

CBP Subject Matter Experts On-Site

Release 1 PlanningWeek of

July 24-30(PGAs, Trade)

ITDS Board

ITDS Board

ITDS Board

ITDS Board

ITDS Board

ITDS Board

NSS ITDS

NSS ITDS

NSS ITDS

NSS ITDS

NSS ITDS

NSS ITDS

PGA Subject Matter Experts On-Site

TLC TLC TLC TLC TLC TLC

CBP

PGA

Trade

CSN = Monthly ACE meeting with CBP Support NetworkNSS ITDS = Monthly National Security Staff ITDS Task Force meeting

ITDS Board = Monthly ITDS Board of Directors meetingTLC = Monthly Trade Leadership Council meeting

WebinarFeb. 26-28

(all stakeholders)

PGA Message Set Webinar

March 20(all stakeholders)

On-siteSprint 4 Review

March 27-28

WebinarMay 16

(all stakeholders)

Weekly Field Readiness Network Updates

WebinarIncrement PlanningMay 13

Software Developer

ConferenceMay 21

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Simplified Entry (SE) is the first phase of Cargo Release developed in ACE. Cargo Release/SE pilot covers entry data for formal and informal consumption entries in the

air mode of transport.

CBP will continue to build upon the success of Simplified Entry to achieve full Cargo Release capability in ACE.

Benefits of Cargo Release/Simplified Entry Enhances Cargo Security

• Allows CBP and the trade community to identify and address potential risks earlier in the process

Streamlines Release of Cargo

• Earlier risk assessment decisions

• Earlier and more detailed messaging

Reduces Transaction Costs

• Reduces transaction costs for importers and CBP by requesting filing data once

• Greater predictability; allows importers to make logistical arrangements in advance of arrival

• Reduces “exceptions” needing special processing after arrival

Cargo Release/Simplified Entry Pilot

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1. Filers Submit a Streamlined Data Submission

Prior to the arrival of the merchandise, filers submit a reduced amount of information – 12 required and 3 optional data elements – for transporting the cargo to the United States.

2. Filers Can Provide the Information in Advance

The Simplified Entry can be filed earlier in the import process, allowing an expanded window of opportunity to identify potential risks earlier.

3. Filers Can Update the Data for Accuracy

It allows filers to update entry information, providing CBP more accurate data and enhancing cargo security.

4. More Detailed and Earlier Messaging

Document requests will look to identify specific documents as appropriate and can begin while goods are still overseas.

This simplifies the merchandise release process, allows for more streamlined electronic transmission for the filer, and assists

importers in finalizing cargo logistics.

Cargo Release/SE Overview

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Cargo Release/Simplified Entry reduces the number of duplicative data elements required to obtain release of products for cargo, eliminating the current entry (CBP Form 3461) This promotes the concept of “the owner knows the data best,” resulting in more accurate

information

The following SE data set replaces the CBP Form 3461:

Simplifying the Entry Process

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The Cargo Release/Simplified Entry pilot began in May 2012 in the air mode of transportation.

As of May 29, 2013, over 113,500 Simplified Entries have been successfully filed for 1,094 importers at 16 airports.

Document imaging capabilities were deployed in November 2012, allowing participants to electronically provide documentation supporting their Simplified Entries via e-mail.

The following documents can be transmitted via e-mail to support Simplified Entry:

Document Label Code

Packing List 01

Commercial Invoice 02

Other 03

Passport/Driver’s License/Government Issued ID 04

CBP-CF 3299 – Declaration for Free Entry of Unaccompanied Articles 05

CBP-CF 4455 - Certificate of Registration 06

CBP-CF 4457 – Certificate of Registration for Personal Effects Taken Abroad 07

CBP-CF 3299 – Certificate of Origin 08

Vehicle Titles, Certificates 09

Permit 10

Cargo Release/SE Pilot Status

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CBP is working to enhance the Cargo Release/Simplified Entry functionality in 2013 to include additional capabilities:

PGA Message Set

• Automates the collection, processing, and sharing of information required by PGAs

• Will replace the myriad of paper forms currently submitted to Federal agencies by the trade community during the cargo importation process

• Piloting with Environmental Protection Agency and Food Safety Inspection Service later this year

Entry Corrections and Cancellations

• Provides the capability for CBP to accept (or deny) corrections and/or cancellations sent by the trade community via EDI to Simplified Entries on file with CBP

Expansion of SE pilot to ocean targeted for 2014

Cargo Release/SE Next Steps

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