Steve Hilsen Lead Executive Single Window Program Office Deborah Augustin Acting Executive Director ACE Business Office (ABO) ACE Status National Customs.

Steve HilsenLead ExecutiveSingle Window Program Office

Deborah AugustinActing Executive DirectorACE Business Office (ABO)

ACE StatusNational Customs Brokers and Freight Forwarders Association of America (NCBFAA)April 22, 2015

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ACS Implementation

Customs Modernization Act Enacted

Automated Commercial Environment (ACE) program initiated with Modernization contract

Trade Act of 2002 Enacted

Executive Order Requiring implementation of the Single Window by 2016

ACE Program Re-baseline; initiation of Agile development methodology

20061984 1993

Historical Timeline

2001

SAFE PortAct Enacted

2013 2014

It’s Time!

Trade Support Network established

1994

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What trade is saying…Primary topics:

• Transition period for mandatory dates

• PGA readiness/pilot programs

• Technical implementation guidance

• CBP business process clarity

• Understanding key changes

• Changes to CBP and industry business practices

• Software vendor readiness

Complex and Challenging!

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…What trade is also saying“A small minority of brokers has been really engaged in ACE and is doing the majority of transactions in ACE. A large number have done little or nothing.”

“With the changing customs and security requirements, and ACE in particular, we recognized we had to improve our customs system and revise business operations. You sometimes have to spend money to make money.”

“I’ve talked to brokers in the last three months who still say it’s been 15 years, I’m not sure it’s going to happen on that date. But that to me means that they’ve not been keeping the pulse of what’s really happening.”

"It is unlikely that CBP will show leniency towards those that do not comply, particularly not for large businesses that have no real excuse for being unprepared.“

“Implementing a new system runs a risk of business disruption, or a drop in customer service levels…Risk management <is> crucial.”

Business Decisions!

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January 2015Electronic import manifest for air and export manifest for air/ocean/rail

May 3, 2015ACE mandatory for all electronic manifest filings

~1 week away

June 2015All entry types delivered

November 1, 2015ACE mandatory for all electronic cargo release and related entry summary filing

7 months away

October 1, 2016ACE mandatory for all remaining electronic portions of the CBP cargo process

18 months away

July 2016All remaining core trade processing capabilities delivered

ACE Mandatory Dates

Deployment of Key ACE Capabilities

20162014 2015

Key Dates for ACE TransitionCommitment to Milestones!

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ACE Progress SuccessfulAgile

Delivery!

Functionality Available in ACE for 2015 Mandatory Dates

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Process Available in ACE Now Coming Soon

Pre-Arrival (Manifest)

• Filing of truck, ocean and rail manifests • Air import manifest processing will be transitioned to ACE May 3rd

Arrival (Entry) • File 01, 03 and 11 entries for any mode File an ACE entry at any port

• Coming in June 2015:• All Remaining entry types• Pipeline entries• Non-ABI Entry

Post Release (Entry Summary)

• File 01, 03, 11 entry summaries• Pay duties/fees on a monthly basis• Ability to file an electronic correction via

Post Summary Corrections

• Coming in June 2015: • All remaining entry summary types• Remote Location Filing • Non-ABI Entry Summary

Exports • File Commodity Data • Software has been developed to allow for electronic export manifest filing in air, ocean and rail modes

• These capabilities will be piloted upon publication of FRNs

PGA Integration • 5 PGA Pilots underway• EPA, FSIS and NMFS pilots

underway now

• Capabilities for 15 agencies needed for November 1 to be delivered June 2015, except for APHIS non-Lacey

• Additional PGA pilots planned; scheduled available on www.cbp.gov

All capabilities needed to meet the May 3rd mandatory date have been deployedAll capabilities needed to meet the November 1st mandatory date have been or will be deployed by June 27, 2015

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Technical Specifications for November 1

CATAIR chapters and Implementation Guides for CBP functionality being made mandatory on November 1st have been posted to CBP.gov since January 2015.

PGA Message Set IGs will be posted by May 12, 2015

Also included on this page is a listing of all software vendors certified to file entries and entry summaries in ACE.

Go to: www.cbp.gov/ace and click “Technical Documentation” in the left hand menu

Available Guidance!

PGA Readiness for November 1CBP and 15 PGAs identified with requirements that must be incorporated into ACE in order to meet the November 1 date for mandatory filing of entry and entry summaries

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Department Agency

Department of Agriculture • Agricultural Marketing Service (AMS)• Food Safety and Inspection Service (FSIS)• Animal and Plant Health Inspection Service (APHIS)

Department of Commerce • National Marine Fisheries Service (NMFS)• Enforcement and Compliance (E&C)

Department of Defense • Defense Contracts Management Agency (DCMA)

Department of Health & Human Services • Centers for Disease Control and Prevention (CDC)• Food and Drug Administration (FDA)

Department of Homeland Security • U.S. Customs and Border Protection (CBP)

Department of the Interior • Fish and Wildlife Service (FWS)

Department of Justice • Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)• Drug Enforcement Administration (DEA)

Department of State • Directorate of Defense Trade Controls (DDTC)

Department of Transportation • National Highway Traffic Safety Administration (NHTSA)

Department of Treasury • Alcohol and Tobacco Tax and Trade (TTB)

Independent Agencies • Environmental Protection Agency (EPA)

PGAs with Requirements

for Nov. 1

PGA Forms for November 1 Lists all forms that

must be submitted in ACE in November and the mechanism: PGA Message Set

(EDI Transmission) Document Image

System (DIS)

Available at www.cbp.gov/ace

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PGA Guidance!

PGA Pilot Schedule

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Agency/ Program Pilot DescriptionImport/ Export

(Planned) Pilot Start

Date

Implementation Guidance

Environmental Protection Agency (EPA) - Ozone Depleting Substances (ODS)

Electronic submission of data related to ozone depleting substances (PGA MS)

Import Ongoing Published on www.cbp.gov/trade/ace/catair

EPA - Vehicles and Engines Electronic submission of data related to vehicles and engines (DIS & PGA MS)

Import Ongoing Published on www.cbp.gov/trade/ace/catair

USDA Food Safety and Inspection Service (FSIS) Electronic submission of data related to meat, poultry, and egg products (DIS & PGA MS)

Import Ongoing Published on www.cbp.gov/trade/ace/catair

EPA - Hazardous Waste Electronic submission of data related to exported hazardous waste Export Ongoing Published on www.cbp.gov/document/guidance/cbp-

proprietary-formatEPA - Pesticides Electronic submission of Notice of Arrival for pesticides (DIS & PGA MS) Import July '15 Published on

www.cbp.gov/trade/ace/catairDOT National Highway Traffic Safety Administration (NHTSA)

Electronic submission of the NHTSA HS-7 form declaration (DIS & PGA MS)

Import July '15 Published on www.cbp.gov/trade/ace/catair

DOJ Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

Electronic data related to declaring importation of firearms, ammunition and explosives (PGA MS)

Import July '15 Published on www.cbp.gov/trade/ace/catair

HHS Food and Drug Administration (FDA) Electronic submission of data related to several FDA commodity classes (PGA MS)

Import July '15 Published on www.cbp.gov/trade/ace/catair

USDA Agricultural Marketing Service (AMS) Electronic submission of data related to egg products (DIS & PGA MS) Import July '15 Published on www.cbp.gov/trade/ace/catair

USDA Animal and Plant Health Inspection Service (APHIS) - Lacey Act

Electronic submission of Lacey Act declaration data (PGA MS) Import July '15 Published on www.cbp.gov/trade/ace/catair

Dept of Treasury Alcohol and Tobacco and Trade Bureau (TTB)

Electronic notice of release of tobacco products; certification / exemption of label / bottle approval (DIS & PGA MS)

Import July '15 Published on www.cbp.gov/trade/ace/catair

PGA Pilot Schedule (cont.)

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Agency/ Program Pilot DescriptionImport/ Export

(Planned) Pilot Start

Date

Implementation Guidance

Defense Contracts Management Agency (DCMA) Electronic submission of the Certificate of Duty Free Entry (PGA MS) Import July '15 Under review

Directorate of Defense Trade Controls (DDTC) Electronic submission of data relating to the import of defense articles (PGA MS)

Import July '15 Published on www.cbp.gov/trade/ace/catair

DOC National Marine Fisheries Service (NMFS) - 370

Electronic submission of NOAA 370 Fishery Certificate of Origin related to importation of processed, frozen and canned tuna (DIS & PGA MS)

Import DIS PILOT Ongoing - PGA MS - July 2015

Published on www.cbp.gov/trade/ace/catair

NMFS Antarctic Marine Living Resources (AMLR) Electronic submission of data related to toothfish (DIS & PGA MS) Import July '15 Published on www.cbp.gov/trade/ace/catair

NMFS Highly Migratory Species Electronic submission of data related to import / export of highly migratory species of tuna and swordfish (DIS & PGA MS)

Import / Export

July '15 Published on www.cbp.gov/trade/ace/catair

Centers for Disease Control and Prevention (CDC) Electronic submission of data related to products of human origin (blood, tissue, etc.) that fall under the Harmonized Tariff Schedule’s Chapter 30 tariff codes (DIS)

Import July '15 Not Applicable

USDA APHIS - Animal Care and Veterinary Services

Electronic submission of data related to veterinary products (PGA MS) Import September '15 Published on www.cbp.gov/trade/ace/catair

USDA APHIS - Biotech / Plant Protection & Quarantine (PPQ)

Electronic submission of PPQ data for CBP Agriculture Specialists (PGA MS)

Import September '15 Published on www.cbp.gov/trade/ace/catair

Consumer Product Safety Commission (CPSC) Electronic submission of data related to certificates of compliance for imports (PGA MS)

Import January '16 30-Apr-15

Fish and Wildlife Service (FWS) Electronic data related to declaring importation / exportation of fish or wildlife (DIS & PGA MS)

Import / Export

January '16 30-Apr-15

CBP and PGA Readiness for November 1- Field Readiness, Cross Agency Pilots

Participants

Pilot Goal

Pilot Details• Internal meetings begin in May with PGA interests, port officials and the CEE

to discuss the piloting scope and schedule, discussing the pilot opportunity with the trade community and sharing upcoming ACE dates at key pilot ports with CEE and company locations.

• After these meetings, the team will work to consolidate comments to the Business Process Documents, providing to participants in DRAFT form before the pilots begin.

• The Business Process Document will be further enhanced once the pilots kick off, as they will identify overlapping PGA issues/authorities that occur in any one given industry. This document, and reference guides, will be updated as the pilots run.

• Auto: EPA, CBP, DOT/ NHTSA • Elec: FCC, CBP, FDA, CPSC• Medical Devices: CBP, FDA

• Validate Business Process Documents, inclusive of Desk Reference Guides, for CBP and the Trade in advance of November 1st deadline.

Process Clarification!

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CBP & PGA Readiness for November 1

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Desk Reference

Guides

.

Business Process

Documents

ACE Training and Deployment

Field Readiness

Coordinators

Cargo Release Support Network

Cross Agency Pilots

The Business Process Documents capture current, interim, and to-be processes for cargo release and entry summary. This cargo release portion has been guided by the Cargo Release Support Network, with input from policy equities.

Supplemental reference guides will provide the field with PGA-specific policy guidance. This will be further enhanced with ACE training efforts, coordinated by the Field Readiness Coordinators.

The Business Process Documents will be further enhanced by the Cross-Agency pilots, which will identify overlapping PGA issues/authorities that occur in any one given industry. This document, and reference guides, will be updated as the pilots run.

Filer Transition Strategy

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Trade Outreach!

ACE Adoption Highlightsas of March 31, 2015

Cargo Entry Submission Rates

• ACE cargo entry submission rate for the month of March remains relatively flat at 4%.

• Volume of eligible ACE cargo entry increased by 18% while volume of cargo entries in ACS grew by 21%.

^

Entry Summary Submission Rates

• ACE entry summary submission rate for the month of March reached an all time high of 50%.

• Volume of eligible ACE entry summaries increased by 26% while volume of ES filed in ACS only grew by 14%.

Software Vendors who File Entries/Entry Summaries

Certified to file entries 55%

Certified to file entry summaries 95%

Top 200 Filers in FY 2014

Approved to file entries in ACE 18%

Have filed an entry in ACE 33%

File > half entries in ACE 0

Approved to file entry summaries in ACEs

100%

Have filed an entry summary in ACE

77%

File > half entry summaries in ACE 40%

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Software Vendors

Adopting!

File Now!

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Monitoring ProgressSingle Window/ACE Program Oversight:

• White House/National Security Council/National Economic Council/Office of Management and Budget

• Congressional Oversight Committees

• Deputies Committee

• Border Interagency Executive Committee

• International Trade Data System Board of Directors

• Department of Homeland Security

• U.S. Customs and Border Protection

Managing for Success!

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Adopt and benefit now!Benefits to the broker community

Don’t Delay!Benefits of ACE Cargo Release Entry:

Eliminate submitting paper Form 3461 (entry document)

File shipment data prior to carrier notifying CBP of departure

Receive status updates prior to cargo arrival

No need to submit corrections through a paper form

Make corrections to cargo entry data electronically

Benefits of ACE Entry Summary:

Eliminate submitting Form 7501 (paper entry summaries)

Request ACE cargo entry certification from ACE entry summary

File Antidumping/Countervailing Duty entry summaries (Entry Type 03) using Remote Location Filing (RLF)

Process Census warning and overrides electronically through ACE

Transmit Post Summary Corrections (PSC) electronically, receive refunds quicker

Gain access to an expanded AD/CVD query

Obtain more information from the ACE Entry Summary query

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Key Dates for Nov. 1 Readiness• Remaining PGA IGs Finalized – May 12th

• Cargo Release Process and Procedure Document – May 15th

• Remaining Nov. 1 Functionality Available for Testing (i.e., in CERT) – May 20th*

• Remaining Nov. 1 Functionality in Production – June 27th*

• Remaining Software Vendors Certified for Cargo Release – July 10th

• Nov. 1 APHIS/Non Lacey Act Functionality Available for Testing – August 10th

• Nov. 1 APHIS/Non Lacey Act Functionality in Production – September 20th

• PGA and Cross Agency Pilots – Ongoing; ref. Published PGA/Cross Agency Pilot Schedules

NOVEMBER 1 MANDATORY USE OF ACE FOR ELECTRONIC ENTRY AND RELATED ENTRY SUMMARY FILINGS

* Does not include APHIS-Non/Lacey Act Functionality

Working in Partnership!

AC

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