CBP postponed some major deployment plans for ACE originally set for Jan. 14, the agency said in a CSMS message (here). The scheduled deployment was to include liquidation, drawback, reconciliation, duty deferral, collections and statements (see 1612090030). "In consideration of stakeholder feedback and the complexity of the ongoing integration testing, CBP is providing additional time to prepare for the final core ACE deployment and ensure a smooth transition of liquidation, drawback, reconciliation, duty deferral, collections, statements and Automated Surety Interface capabilities in ACE," it said. "CBP will provide updated information and a new deployment date in the near future." Although it is postponing the ACE mandatory use date for drawback, most liquidation capabilities, reconciliation, duty deferral, collections, statements and the Automated Surety Interface, CBP will still move forward on Jan. 14 with posting notices of liquidation to its website as planned (see 1612090026).
Drawback
A duty drawback is a refund by CBP of the duties, taxes, or fees paid on imported goods, which were imposed upon importation. More broadly, a drawback also includes the refund or remission of other excise taxes pursuant to other provisions of law. CBP's duty drawback scheme under the Customs Act of 1962 allows exporters to receive a refund on customs duties they paid on imported products that are then used or incorporated into other products for export or remain unused until importation.
The International Trade Commission on Jan. 1 posted the Preliminary Edition of the 2017 Harmonized Tariff Schedule (here). The new HTS implements a wide range of changes to the World Customs Organization’s Harmonized System tariff nomenclature, which forms the basis for the HTS, that took effect at the beginning of 2017. This is the sixth and final part of International Trade Today's multipart summary, covering vehicles, precision instruments, manufactured articles and special tariff provisions under chapters 87-99. This part also includes a list of subheadings that were assigned the special program indicator (SPI) "NP" to denote eligibility for the Nepal Preference Program.
CBP won't add capabilities in ACE for Automated Broker Interface filing of Importer Security Filing transactions or the Automated Surety Interface as was planned in the Jan. 14 deployment, it said in a CSMS message (here). CBP said it would send out a notice about the future deployment date for ISF and that an "interim solution developed with the sureties will be in place until ASI is deployed in full at a later date." CBP will still require filing in ACE beginning on Jan. 14 for drawback and duty deferral entries (see 1612090030). "CBP encourages filers to transmit all available transactions prior to 5pm EST on Friday, January 13, in advance of the cutover," the agency said. "If updates are required to Reconciliation, Drawback or Duty Deferral transactions filed in [the Automated Commercial System] prior to the cutover, filers will need to work with the Ports/Centers of Excellence and Expertise as appropriate." Also as of Jan. 14, Food and Drug Administration stand-alone prior notice submissions won't be accepted through ACS.
CBP is looking at whether to relax a limit on the number of import entries allowed on manual drawback entries after Jan. 14, said Randy Mitchell, director, Commercial Operations, Revenue and Entry Division, at CBP. Mitchell, who spoke on a drawback webinar Jan. 4, said the agency right now still plans to limit manual claims filed at drawback centers to 25 import data "elements" starting Jan. 15, as described in the ACE Entry Summary Business Rules (here). But, "we're discussing right now if we need to broaden that," he said. "We're really working with our operational office also because it really impacts them if we loosen that policy decision up and include all of the import entries," he said. CBP is "weighing all those concerns" and will update its business rules if it decides a change is necessary, he said. Several webinar participants inquired about the limit.
CBP issued the following release on commercial trade and related matters:
CBP will make numerous regulatory changes to reflect the Centers of Excellence and Expertise as a component of the agency, it said in an interim final rule (here). Among other things, the interim rule officially shifts responsibilities from the port directors to the CEE directors, CBP said. The new rule also describes the process by which importers will be assigned to Centers and the appeals process for their Center assignments, CBP said. The Trade Facilitation and Trade Enforcement Act required CBP to implement the CEE (see 1602170074). The interim rule will be effective Jan. 19.
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CBP’s Jan. 14 mandatory use date for drawback, reconciliation, duty deferral and liquidation in ACE will also be the date that the ACE transition occurs for statements and Importer Security Filings (ISF), CBP said in a CSMS message (here). However, the Jan. 14 deployment does not include Manufacturer ID Add, because “this capability must be deployed at the same time as Foreign Trade Zone (FTZ) Admissions (e214s).” Also, the ACE Product Code query will be removed from and no longer supported in ACE, CBP said.
CBP will require filing in ACE beginning on Jan. 14 for drawback and duty deferral entries (here) and reconciliation entries (here), it said. As of that date, filing in the Automated Commercial System for drawback, duty deferral and reconciliation will no longer be available, it said. CBP had previously mentioned the drawback deadline, and said it is targeting mid-January for other post-release functions including reconciliation, liquidation, duty deferral, collections and statements (see 1612010041).
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