CBP and the trade community may still not be ready for ACE drawback and reconciliation by Oct. 29, despite CBP’s recent delay of the deadline, customs lawyer Michael Cerny said during a panel discussion at a National Customs Brokers & Forwarders Association of America conference in Washington Sept. 12. Both systems have been “barely tested,” and software developers still aren’t ready with programming, said Cerny, who chairs the Trade Support Network’s drawback subcommittee. CBP’s CATAIR requirements and business rules still aren’t set with less than two months before the deadline, a situation reminiscent of the approach to CBP’s original November 2015 deadline for all of ACE, he said.
CBP faces a challenging budget environment for ACE as it works to find funding for improvements and new functionalities long desired by the trade community, said Cynthia Whittenburg, deputy executive assistant commissioner at CBP’s Office of Trade, at a National Customs Brokers & Forwarders Association of America conference in Washington Sept. 12. Following completion of “core” ACE in December, the “funding profile” will “adjust downward” as CBP will be legally required to use ACE operations and maintenance funding for operations and maintenance, and will not be able to use the funds for building new capabilities, including for partner government agencies (PGAs). “So when you see in our appropriations and funding, 'ACE,' those dollars are going strictly to fixing bugs and keeping the system running,” she said.
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As implementation of core ACE capabilities nears completion, CBP and the trade community “need to keep an eye on” congressional budgets to make sure the resources are in place for improvements after 2016, said Brenda Smith, executive assistant commissioner of CBP’s Office of Trade, at the National Customs Brokers & Forwarders Association of America Government Affairs Conference on Sept. 12 in Washington. Though completion of core ACE by the Obama administration’s December 2016 deadline is “in the bag,” there is “vast room for improvement,” Smith said. CBP and the trade community need to make sure that ACE is not only the “best of the best” single window in 2016, but continues to be going forward, she said.
CBP outlined the changes to come once ACE becomes required for electronic drawback filings, set for Oct. 29, on the agency's website (here). Most of the changes, such as a limit of 5,000 records and the use of the Document Image System, were previously described by CBP (see 1608110026).
CBP will move the mandatory use date to Oct. 29 for several post-release processes in ACE, including reconciliation and drawback, according to a letter from CBP sent to Trade Support Network leadership and posted by CustomsNow (here). A CBP spokeswoman confirmed the contents of the letter and said the agency's website would be updated soon. The change follows a request from the Trade Support Network asking for more time to prepare for drawback and reconciliation in ACE (see 1608310049). "CBP is moving this date from October 1, 2016 to October 29, 2016 to allow additional time for our trade stakeholders to transition these capabilities to ACE," the letter said. "This adjustment affects the mandatory filing of liquidation, drawback, reconciliation, duty deferral, collections, statements, and automated surety interface," it said.
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CBP posted an updated version of its ACE Entry Summary Business Rules and Process document, dated Sept. 1 (here). "The updated version of the document includes a rewritten Liquidation section, a revised and expanded Protest section, and minor edits to the Drawback section (more updates to this section will be coming soon)," CBP said in a CSMS message (here).
CBP received and is considering how to respond to a Trade Support Network leadership council request to allow for a grace period for drawback and reconciliation filing after deployment in ACE (see 1608310049), an agency spokeswoman said. "CBP is continually evaluating the readiness around this transition and is committed to ensuring that the transition does not disrupt the flow of commerce," she said. " A response will be provided to the trade community upon further assessment of these considerations." The TSN asked for a 60-day "grace period" during which filers could use the Automated Commercial System while testing ACE for drawback and reconciliation.
CBP should give the trade community a grace period of 60 days to file in the legacy Automated Commercial System after it deploys drawback and reconciliation in ACE on Oct. 1, the Trade Support Network leadership council said in a letter to the agency dated Aug. 26. Current plans to deactivate ACS for drawback and reconciliation at the same time CBP launches drawback and reconciliation in ACE do not leave enough time for testing and training, and the agency still hasn’t issued the required policies and regulations, it said.