Automated Commercial Environment (ACE)

CBP added recent updates on the Automated Commercial Environment to its list of issues for the trade (here) on Nov. 18. CBP also provided links to a number of other ACE-related items in a CSMS message (here). Among those are the ACEopedia for November (here) and the adoption report for ACE in October (here). According to the adoption report, the ACE cargo release "submission rate grew from 8.3% in September to 10.2% in October." The low levels of cargo release submissions is a source of some concern at CBP ahead of the ACE transition dates (see 1510190017 and 1511050059).

CBP posted a list of Automated Commercial Environment technical issues (here). The "list is to inform ACE filers and other interested parties of the existing technical issues and when they are scheduled to be fixed (where possible)," said CBP in a CSMS message (here).

CBP is committed to "conducting the transition to [the Automated Commercial Environment] from our legacy systems in a manner that is sensible and responsible," the CBP Office of International Trade said in response to concerns from the National Association of Foreign Trade Zones. The NAFTZ recently voiced some worries for the timing of FTZ reporting requirements in ACE (see 1511190017). "We have worked closely with the NAFTZ and other key trade community stakeholders over the last several years on our plans for implementing ACE," said a spokeswoman. "CBP is continually evaluating the readiness around this transition and intends to do this in a way that does not disrupt the flow of commerce. We appreciate the concerns raised by the NAFTZ and will continue to work closely with them and all of our stakeholders to ensure we can successfully meet our shared goal of operating in a single window environment."

CBP should further revise its timeline for Automated Commercial Environment implementation, the National Association of Foreign Trade Zones said in a Nov. 16 letter to CBP Commissioner Gil Kerlikowske (here). A recent update to the CBP and Trade Automated Interface Requirements (CATAIR) changed the data reporting requirements for FTZs in ACE and require further testing, said the trade group. CBP previously scheduled deployment of quota-related entry types, including FTZs, for Feb. 27, but has since revised that plan following industry concerns (see 1509300020).

The elimination of "hybrid" customs filings that are both in paper form and electronic may force some companies to revert to paper filing, a worrisome prospect that "could severely impact the economy," said UPS in comments to CBP (here). Any "process that requires a full paper submission seems to contrast" with CBP's automation goal, the company said." Neither CBP, the [Partner Government Agencies] nor the Trade have the human capital to return to such an antiquated process," it said. The company's comments were in response to CBP's interim final rule and proposal that outlined the agencies plans to make the Automated Commercial Environment mandatory and wind down the Automated Commercial System (see 1510090017).

CBP will adopt a final rule on the centralization of the agency's continuous bond program that doesn't include several previously proposed provisions, CBP said in a notice (here). A CBP proposal in 2010 (see 10011105) mentioned numerous changes that the agency decided to avoid due to other regulatory updates, it said. The agency also added some new changes in response to public comments it received, CBP said. The rule is effective Dec. 14.

BALTIMORE -- The role of the Centers of Excellence and Expertise as a liaison between the port and the other government agencies is expected to grow as the program matures, said CBP and industry panelists while discussing the program at the East Coast Trade Symposium on Nov. 5. CBP is set to continue its expanded use of the CEEs, with plans to open the Apparel CEE to the entire industry by the end of the year (see 1511040014). While speaking with reporters on Nov. 4, Todd Owen, assistant commissioner of CBP’s Office of Field Operations, said the other six CEEs will also open to entire industries by June.

BALTIMORE -- Despite rapidly approaching deadlines for implementation of the Automated Commercial Environment by the trade community, the latest data from CBP still shows only about 10 percent of cargo release submissions are being done in ACE, said Steve Hilsen, CBP’s lead executive for the single window, at the East Coast Trade Symposium on Nov. 5. Though part of the reason for the low adoption rate is the incomplete implementation of partner government agency (PGA) requirements, there’s “a lot of cargo releases out there” that aren’t subject to PGAs, he said.

BALTIMORE -- CBP will no longer allow substantial changes to Automated Commercial Environment filing requirements for the three partner government agencies (PGAs) set for full implementation on Feb. 28, said Brenda Smith, CBP assistant commissioner-international trade, at a press conference held Nov. 4 at CBP’s East Coast Trade Symposium. However, the agency may still have to implement fixes for bugs and broken policies, she said. An official from one of those agencies, the Food and Drug Administration, later said changes may still be necessary to correct issues or account for new deployments in ACE that may affect FDA.

BALTIMORE -- CBP’s rewrite of its Part 111 customs broker regulations is again on hold until the agency completes regulatory changes required for implementation of the Automated Commercial Environment, said CBP Assistant Commissioner Brenda Smith at the CBP East Coast Trade Symposium on Nov. 4. The effort on broker regulations involves many of the same resources as the ACE regulatory changes, currently CBP’s top priority, meaning a proposed rule on Part 111 is at least six months away, she said.