ACE: Pathways for Success

Introduction

Market leaders are taking a systematic approach in their adoption of U.S. Customs and Border Protection’s (CBP) Automated Commercial Environment (ACE). They are working to ensure that compliance does not disrupt their business; capitalizing on the potential benefits of the regulation; and taking active steps now to ensure a smooth transition ahead of anticipated deadlines.

Successful brokers and importer self-filers are able to unlock the potential benefits by ensuring that they have a strategy in place to effectively transition to ACE as the new system of record. They are approaching ACE systematically to avoid the pitfalls of a rush to last-minute compliance.

Leading Adopters:

• Know which components of ACE could help add to operational efficiency or improve customer service and are helping their customers to onboard where required
• Effectively use a single vendor or systems integrator to bring all the critical components of ACE together without changing context or focus

Where We’ve Been & Where We’re Going

History

As part of the overall North American Free Trade Agreement (NAFTA) implementation, the 1993 Customs Modernization Act or ‘Mod Act’ changed U.S. customs laws to help apply modern techniques and procedures to the import process. ACE, the Automated Commercial Environment, is part of an overall long-term improvement effort to create a centralized system-of-record through which the U.S. government will track, control, and process information related to the import and export of goods.

On February 19, 2014, President Obama signed an Executive Order that effectively established a deadline of December 31, 2016, for full implementation of the International Trade Data System (ITDS).

Key Focus Dates

• 1993: Trade ACT of 2002 called for advance filing of electronic cargo information
• May 1, 2015: Mandatory use of ACE for electronic import and export manifest
• Nov 1, 2015: Mandatory use of ACE for electronic Cargo Release and related Entry Summary filings
• Dec 1, 2016: Mandatory use of ACE for all remaining portions of the CBP cargo process

New Methods: Agile Methodology

CBP has implemented a number of basic organizational and governance changes to ensure the success of current and future ACE development projects. Key to this plan is the shift toward the Agile Development paradigm, which calls for teams to work concurrently with build-drops scheduled at regular intervals.

The agency's new procedures:

• Have moved away from delivering large suites of capabilities toward a more segmented approach
• Call for more collaboration with stakeholders during the development and deployment phases
• Increase trade outreach programs to add to overall industry regulatory knowledge and visibility
• Involve volunteer field personnel from the trade serving as ACE Trade Ambassadors
• Refine deadlines and offer a plan to deliver core trade processing within specified dates

Unlocking the Benefits

Electronic Census Warning Resolution

Census overrides can now be transmitted electronically, eliminating manual paperwork. This automated functionality has been a long-requested enhancement by the trade and industry associations, helping filers reduce paperwork and increase efficiency.

Remote Location Filing (RLF)

ACE Type 03 entry summaries are paperless, allowing qualified filers with continuous bonds to remotely file at the first U.S. port of arrival.

Periodic Monthly Statements (PMS)

Payments are collected once a month instead of on a transaction-by-transaction basis. This enables duty payments to be consolidated, allowing filers to hold onto funds for a longer period.

Post-Summary Corrections (PSCs)

A PSC serves as an electronic replacement of ACE entry summary data, moving from a paper-based to a paperless process, benefiting both CBP and the trade.

Document Imaging System (DIS)

Allows for the electronic filing of certain documents, streamlining requests and reducing the need to send multiple forms to the government.

ACE Cargo Release Pilot

ACE Cargo Release allows filers to electronically request faster release of parts of a shipment as they arrive, improving efficiency in the cargo release process.

Pathways for Success

The pathway to successful ACE adoption is non-linear. Successful adopters are taking a strategic approach to ACE adoption with critical evaluations at key milestones. They are exploring and developing organizational/procedural alignments ahead of the deadline to adopt the best internal procedures.

A good solution for transitioning to ACE should leverage the benefits of ACE to help filers save money while improving service and competitiveness.