CBP Issues Federal Register Notice on Its NCAP/ACE Test for ESAR (Part I)

This notice also announces the types of ACE portal accounts that have been added or enhanced.

(On September 9, 2007, CBP deployed ESAR A1. Among other things, with the deployment of ESAR A1, previously-available ACE account types were enhanced and additional account types were created.)

This is Part I of a multipart series of summaries, and highlights information regarding the previously-available ACE account types, misconduct penalties, etc. See future issue for summary of expanded ACE accounts.

ESAR to Provide New/Enhanced Account Management Functions for Portal Accounts

According to CBP, these new capabilities provide enhanced account management functions for ACE portal account holders and expand the universe of ACE account types. With the deployment of ESAR A1, the number of account types expanded from 3 to 11:

broker (enhanced)

carrier (enhanced for truck; new for air, rail, sea)

cartman/lighterman (new)

driver/crew (new)

facility operator (new)

filer (new)

foreign trade zone (new)

importer (enhanced)

lighterman (new)

service provider (new) (According to the ACE application this includes software vendors, service bureaus/centers, port authorities, preparers, and surety agents.)

surety (new)

ACE is Now the System of Record for Certain Data Elements

According to CBP's notice and CBP sources, ACE is now the lead system (i.e., system of record) for CBP-required master data elements (e.g., company name, address, point of contact) as well as related reference files (e.g., country code, port code, manufacturer ID, gold currency exchange rate and conversion calculator). This means that the master account data and reference files will be permanently housed in ACE, but will be distributed to other CBP systems such as the Automated Commercial System (ACS).

Enhancements for Previously-Available ACE Account Types

The following enhancements were added to the previously-available account types:

Importer portal accounts. Importer portal accounts have the ability to create and maintain specified importer data via the ACE portal.

Filers also have the ability to create a new CBP Form 5106 (Importer ID Input Record) via the ACE portal or the Automated Broker Interface (ABI).

CBP also states that until ACE e-bond functionality is deployed, importers who have a continuous bond on file who want to update their CBP Form 5106 information will need to submit the CBP Form 5106, along with the paper bond rider, to the CBP Revenue Division in Indianapolis.

Additionally, importers and filers have the ability to view applicable Participating Government Agency (PGA) licenses, permits and certificates (LPCs) via the ACE portal.

CBP notes that eligibility requirements for Importer Portal Accounts remain unchanged.

Broker portal accounts. Broker portal accounts have access to the following functionalities through the ACE portal: maintenance of organizational demographic data (e.g., addresses, points of contact, etc.); license and permit qualifiers; data on managing officials; employee lists; relationships to individual licensed brokers; points of contact and address information (at filer code level, for each local broker permit and each port covered by the local permit, and for the national broker permit).

Broker portal accounts are also able to generate the following reports: local and national broker permits on an annual basis; broker employee lists; open broker permits; and delinquent permit user fees by port or broker.

Broker portal accounts with a filer code may be used to create the CBP Form 5106 via the ACE portal and can view applicable PGA LPCs.

CBP adds that eligibility requirements for Broker Portal Accounts remain unchanged.

Truck carrier portal accounts. In addition to its current capabilities, a truck carrier portal account will now be able to view any applicable PGA LPCs and have access to the following functionalities through the ACE portal: maintenance of addresses and points of contact; and pre-registered truck conveyance, equipment, shipper, and consignee data.

A truck carrier portal account will also be able to create and maintain driver accounts and search for and correlate existing driver accounts to their carrier account.

According to CBP, eligibility requirements for truck carrier portal accounts remain unchanged.

Misconduct May Lead to Civil, Criminal Penalties, Etc.

According to CBP, with regard to misconduct, an ACE test participant may be subject to civil and criminal penalties, administrative sanctions, liquidated damages, and/or suspension from the test.

Examples of misconduct include: failure to follow the terms and conditions of the test; failure to exercise reasonable care in the execution of participant obligations; failure to deposit duties or fees in a timely manner; misuse of the ACE portal; engagement in any activity which interferes with the successful evaluation of the new technology; etc.

Certain Provisions in 19 CFR Suspended During Testing Period

CBP states that during the testing of the ESAR functionality, CBP is suspending provisions in 19 CFR Part 24 relating to the filing of the CBP Form 5106, as well as provisions in 19 CFR Part 111 relating to current procedures that are done via paper by customs brokers and that will now be done electronically.

ACE Participants Required to Evaluate the ESAR Test

CBP states that to ensure adequate feedback, participants are required to participate in an evaluation of this test. CBP is also inviting all interested parties to comment on the design, implementation and conduct of the test at any time during the test period. CBP will publish the final results in the Federal Register and the Customs Bulletin.

(For more information on ESAR A1's functionality, including information on CBP Form 5106, see ITT's Online Archives or 08/09/07 and 06/11/07 news, 07080920 and 07061105, for BP summaries of CBP's discussion of the deployment of A1 at the ACE Exchange VI and V conferences, respectively.

See ITT's Online Archives or 09/20/07 news, 07092005, for most recent BP update on the deployment of ESAR A1. See ITT's Online Archives or 09/27/07 news, 07092705, for BP summary announcing a revised ACE application (which includes the expanded account types).

See ITT's Online Archives or 08/31/07 news, 07083145 1, for BP summary announcing that the ACE Account Services Desk was increasing staffing levels to prepare for the new capabilities that are coming with the deployment of A1.

See ITT's Online Archives or 08/06/07 news, 07080610, for BP summary announcing that CBP updated its ACE Web-based training to include a course on A1.)

CBP general notice (FR Pub 10/18/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-20553.pdf