COAC Trade Members Call for FAQ Notifications, Hear ACE Updates
Members of the Commercial Customs Operations Advisory Committee voted unanimously to recommend that CBP beef up its communications with the trade by providing more transparency over when CBP updates the FAQs that the agency has been using to inform the trade on how it's implementing new tariffs.
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The vote occurred during COAC's quarterly meeting on June 18.
The first recommendation was to standardize the FAQs so that they can be easily identifiable. This would include providing highlights of the updated text and incorporating the date of change in the FAQ.
The second recommendation was to offer opt-in push notifications for FAQ updates; the third, for a change record to be maintained and available to the public.
These recommendations were based off of conversations that COAC members have had with other groups, according to Dave Corn, COAC member and trade co-chair.
Federal officials did not provide feedback on the recommendations, although Susan Thomas, acting executive assistant commissioner with CBP's Office of Trade, said separately in her opening remarks that CBP would continue to send cargo systems messages that provide guidance and instructions related to implementing tariffs in ACE, as well as use CSMS messages to transmit updates and related technical information.
CBP also will work with other government agencies to implement tariffs as they are announced and provide de minimis-related guidance, she continued.
Thomas provided COAC meeting attendees with an update on ACE, including enhancements to the system that would enforce the $800 threshold for de minimis shipments and be operational later this summer, she said.
She said that, on July 15, CBP expects to deploy an enhancement in ACE that will provide users with an automated rejection for shipments, including de minimis shipments with insufficient cargo descriptions, consignee information or shipper information. The latest ACE development schedule changed the deployment of automated rejections for manifests with insufficient cargo information from July 15 to "TBD."
And then on Aug. 12, CBP plans to deploy an enhancement in ACE that would enforce the daily $800 threshold on de minimis shipments (see 2506170029).
"We are testing our systems, raising awareness amongst importers and other supply chain actors and giving industry time to adjust their own systems," Thomas said. While ACE currently deploys an automated warning message alerting filers that they could exceed the daily $800 de minimis threshold, CBP does not yet reject a hold or a shipment if the threshold is exceeded. Rather, the shipment may be ineligible for clearance under de minimis entry procedures upon arrival, she said.
Thomas also provided an update on CBP's plans to deploy advanced technologies into ACE. Given the shifting nature of global trade and technology, CBP has pivoted from the term "ACE 2.0" to "ACE modernization." The new term reflects the planned addition of new components and capabilities that will enhance security, make ACE scalable to meet demands and position ACE to adapt to processes and evolving international trade requirements, she said.
"ACE modernization will give CBP partner government agencies and the trade community earlier access to digitized, dynamic and actionable data, cloud computing to improve large-volume data management, automation of labor-intensive processes, and support multilingual, seamless data exchange," Thomas said. "Modernizing ACE will enhance data integrity to improve cargo processing and account for emerging actors and business practices."
CBP already has begun to modernize ACE, as the agency reallocated some FY 2025 funds to the ACE program. This will help the agency efficiently implement executive orders and enforce de minimis rules, Thomas said. Furthermore, CBP is working on a long-term funding strategy that would allow the agency to maintain the system through 2023 and beyond, she continued.
Thomas gave several ACE-related statistics for fiscal year 2024, which ran from Oct. 1, 2023, through Sept. 30, 2024.
CBP processed more than 987 million cargo entries and 20 million export shipments in FY 2024, and on a typical day, the agency processed 10.9 million data-sharing transactions with partner government agencies, according to Thomas.
CBP also facilitated the importation of $3.6 trillion in legitimate trade, and it collected $88 billion in import duties, taxes and fees in FY2024.
The agency also has implemented 23 tariff-related executive orders in ACE, Thomas said.
In addition to providing an update on ACE, Thomas also provided an update on CBP's forced labor efforts. Between Oct. 1, 2024, and May 30, CBP has stopped 6,413 shipments valued at more than $119 million under forced labor enforcement protections.
CBP expects to deploy a forced labor allegation portal on June 20 that will allow the trade community users to submit allegations of companies using forced labor to undercut U.S. businesses and manufacturing, according to Thomas.