Trade User’s Guide for ACE-ESAR Release A2



Trade User’s Guide for ACE-ESAR Release A2

Prepared by Arthur Litman (FedEx Trade Networks) and Celeste Catano (Kewill TradePoint Systems)

The reader should be advised that any decisions, policies, and solutions set forth in this document are subject to change at any time without prior notice. This document is not approved, endorsed, or sanctioned in any way by Customs and Border Protection or the Department of Homeland Security.

Contents:

➢ Introduction

➢ Account Setup

➢ Pre-Release

➢ Release

➢ Entry Summary

➢ Other Entry Types

➢ Document Presentation

➢ Payment of DTF

➢ Post-Summary Corrections

➢ Notices and Requests for Information

➢ Reconciliation Processing

➢ Liquidation/Closeout

➢ Refunds-Increases

➢ Protest Processing

➢ Imaging of Documents

➢ Implementation/Roll-out

➢ Glossary of Acronyms

Introduction:

This guide was produced to help current ABI/ACS customs brokers, self-filers, and their automation vendors focus on significant changes they might experience as ACE ESAR (Entry Summary, Accounts, Revenue) Release 5 is rolled out; currently expected in Mid, 2008. It is arranged in a somewhat sequential order and focuses on key areas of activity. Within each area we provide information on what we see as operational changes, automation changes, and outstanding questions. This guide is not meant as a comprehensive guide to all aspects of ACE. The details of the automation changes are not finalized and will be further refined in future Trade Ambassador workshops with CBP and the ACE Support Team.

For the automation changes, we have estimated the significance of each change. The indicators are Small – less than 24 hours of programming, Medium – 24 to 80 hours, and Large – over 80 hours of programming.

Under the “outstanding questions” sections, CBP has provided us with some answers. These are indicated after the question, in bold italics.

Account Setup

Operational Changes

• Portal Accounts

o Importers will have a choice of becoming an ACE Secure Data Portal account, with all the associated requirements and benefits.

▪ Importers can give brokers access to all or part of its information.

o Customs brokers will find it advantageous to set up their own ACE Secure Data Portal account as early as possible:

▪ Required for participation in PMS for both entries filed in the broker’s name and for Non-portal Account clients.

▪ Will have access through broker’s portal to client’s information for entries where the broker was the filer.

• Valuable reports.

• Validation of information.

▪ Allows brokers participation in cross account processing. This is where a broker can have access to multiple clients’ portals utilizing the ACE Secure Data Portal with one user ID and password.

• The broker will log into their account and be presented with a list of importer accounts that have given them access to their information. The broker selects the account from the list and can then work with the information. Brokers will only be allowed to work on one account at a time. The broker will have the ability to switch from one import account to another.

• Non-Portal Accounts Participation in PMS

o CBP-5106 - The data required to open a new account will be revalidated and a participation “switch” set by CBP’s Financial Center.

o Brokers will be able to set up an importer account using a power of attorney.

o Non-portal importers can participate in Periodic Monthly Statement payment if they have a continuous bond. Participation can be though a broker’s statement or the importers can have their own separate statement. Non-portal importers using their own separate statement can have funds drawn from their own ACH account or, if agreed, their broker’s.

• Account Master Data – As part of the initial implementation of ACE ESAR, CBP, in ESAR Drop A1 (May, 2007) will be setting up ACE master files. These files will be available through existing ABI transactions and the Secure Data Portal (referred to as the portal). Please note that the portal functionality will allow create, update, and read capabilities. These will include:

o Accounts Master Data (Profiles)

o Name, Address, Point of Contact

• Master Data: Please note that the portal functionality is query and read only.

o Tariffs

o Manufacturer IDs

o Organizational Data (Port/FIRMS Codes)

o Countries

o Exchange Rates

o Reference Data to support ESAR Drop A2

Automation Changes

• Brokers have asked to provide CBP-5106 initial filings and updates using ABI EDI transmissions. (Small)

• Trade has also asked for access for brokers to update basic ACE Secure Data Portal information, such as name and address changes, using ABI EDI transmissions.

o Brokers are concerned about costs incurred to make simple corrections using the Internet programs because of the inherent slowness of the connections, the complexity of making changes and the possibility of inconsistent data between the broker’s system and CBP’s portal because of input errors.

Outstanding Questions

• Will ABI EDI programs be provided that will allow changes in brokers’ systems to also update the ACE Secure Data Portal information? This was requested for simple information such as name, address, phone, etc. For A1, CBP is looking at providing a message set similar to the ABI TI transaction (Importer 5106 Add) to handle 5106 updates.

• Will the broker be able to maintain its own account using an ABI transmission? This is not considered to be in scope for A1/A2 but may be addressed in a later ACE release.

• Will there be an automated method of assigning/obtaining importer numbers where no IRS or SS# exists? Pending legal/policy decision.

• Will brokers be allowed to set up an ACE Secure Data Portal Account for an importer under a Customs Power of Attorney? Pending FRN for brokers to establish portal accounts for importers specifically as it relates to PMS.

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Pre-Release

Operational Changes

• The e-Bond programs will be in place.

o Check bond sufficiency.

o Check if preparer has authority to file bond.

o Processing continuous e-Bonds.

o Processing single transaction e-Bonds.

• Agents for sureties will be able to file bonds electronically using ABI, or manually using the ACE Secure Data Portal.

o Sureties, however, must have first given them authorization.

• With the bond information stored electronically, CBP will be able to do a bond sufficiency check at the time an entry is processed.

Automation Changes

• E-Bonds – New CATAIR message set. (Medium)

Outstanding Questions

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Release

Operational Changes

• Note: the release of cargo is not part of ESAR A2, but will come later.

• ACE will continue to allow the option of using a two-step process (Entry, followed by Entry Summary)

• Note: trade should watch the relationship between “ultimate consignee” at release and “ultimate consignee” at summary. Currently they are defined differently as between release and summary. The CBP-346l (form and data) currently accommodates multiple consignees but the CBP-7501 accommodates only one. Under ACE the CBP-7501 will be changed to accommodate the CBP-3461 Ultimate Consignee information at the entry summary line item level.

• Note: Release acts as the trigger for the obligation to pay DTF.

When release is “certified” from the CBP-7501 dataset,

o It is expected that no partial data transmissions will be allowed. If the certified CBP-7501 data is used, the “Declaration” will be part of the transmission.

o Receipt and acceptance of Entry Summary combined with release by CBP will act as a trigger to:

▪ Transfer the DTF due to the Finance system.

▪ Require all subsequent changes in the CBP-7501 to be done using the PSC process.

o “Full replace” of the CBP-7501 data set can be done until the shipment is released. After that, once accepted, all changes to the CBP-7501 data must be through PSC.

• When a two-step process is used (CBP-3461 data followed by CBP-7501 data):

o The CBP-7501 data must be filed, including the Declaration, within the 10 working-days period to avoid late filing penalties.

o “Full replace” of the CBP-7501 data set can be done until the shipment is released. After that, all changes to the CBP-7501 data must be through PSC.

Automation Changes

• There will be an additional one-character flag on the Entry Summary ABI transaction that will indicate whether the specific transmission acts as the Entry Summary Declaration. (Small)

• The ability to transmit Ultimate Consignee data at the line item level on the CBP-7501 EI transaction. (Medium)

• CBP-7501 changes to print the multiple Ultimate Consignees at the line item level. (Small)

Outstanding Questions

• How will we handle the different need and definition of Ultimate Consignee on the CBP-7501 (the party who caused the import – particularly important when the broker is the importer of record) from that on the CBP-3461 (the “deliver to” parties)? This is to be decided by OFO.

• How will we handle release under Immediate Delivery in ACE? This is to be handled as it is today. ACE processing does not impact Immediate Delivery.

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Entry Summary (CBP-7501) Preparation and Transmission

Operational Changes

• The 10 working (business) day cycle will remain for submission of all Entry Summary data (or paper Entry Summaries) regardless of whether paid individually, by Daily Statement, by PMS, or where no payment is required.

o Currently PN (ACH authorization) is utilized to complete the Entry Summary Declaration. In ACE the PN will only be used for financial purposes

• Census Warnings: A sophisticated system is being developed in ACE to allow better communications between ABI filers and CBP with respect to the Department of Commerce census parameters:

o A new business process using override codes will be developed.

▪ CBP upon receipt of an entry summary transmission reviews and validates each entry summary against a set of criteria maintained by Census. If the values are out of range of the census parameters, a warning message is issued to the filer.

▪ The trade then has 2 options: (1.) Re-submit the entry summary with changes to the values that caused the census warning (2.) Send in the appropriate census override code for the data that is out of range.

▪ The Trade will also be able to submit override codes as part of their initial entry summary submission. This can be used where the Trade is confident from past experience that the data will generate a census warning. ACE will determine if valid override code(s) were provided? If the answer to this is no the Trade will receive an error response. If valid override code(s) were provided, the census warning will be removed from the entry summary and the override code(s) will be written to the entry summary line item.

▪ There were discussions about providing Census with the ability to create importer specific parameters.

▪ The trade has requested an ABI Query that will allow the trade the ability to see what entries have Census Warnings that have not been responded to.

• Quota/Visa Processing will be enhanced in ACE. The system will better understand the relationships between categories and HTS numbers. There will also be a more sophisticated (read: automated) system to handle closings and over-subscriptions.

• Licenses, Permits, Certificates will be enhanced in ACE. ACE should recognize what is needed in a better way and, hopefully, give better feedback to the ABI user.

• Flagging for Reconciliation will be allowed both at the time of filing as well as via Post-Summary Corrections. ACE reconciliation flagging will be at the line item levels. Flagging at the header will have the effect of flagging all the line items.

• IASS will be part on ESAR release A3 and not dealt with in the A2 release. However the requirements have been reviewed and, where necessary, accommodated in this release.

• Note the focus on line item data in ACE – as opposed to header emphasis in ABI.

• Additional party information will be required for AD/CVD Cases to record the Shipper/Exporter for each line.

• Once the summary is accepted, if there is no “Documents Required “ request from CBP:

o For duty/tax/fee free summaries, you simply meet the regulatory recordkeeping requirements and you are done.

o For shipments with duties/taxes/fees due, these funds will be paid either individually, by Daily Statement, by PMS, or where no payment is required. You also then simply satisfy the normal regulatory recordkeeping requirements.

• Under ACE, the filer will continue to indicate on an Entry Summary filing that the duties will be paid using PMS.

Automation Changes

▪ EI (Entry Summary) transaction change to accommodate the flagging for reconciliation at the line level instead of the entry level. (Small – if your system already makes this determination at the line level. Large - if it does not)

▪ Census Warnings. A change to the EI (Entry Summary) message is being developed to allow for the transmission of a new Census Override Code as part of the initial submission, or upon receipt of a Census warning. (Medium)

• The requirement to make corrections using PSC may require changes in the filer’s existing system to accommodate line-item changes with reason codes. In addition, the filer will need to maintain and identify all versions of the Entry Summary data that has been transmitted to CBP. (See PSC correction section below)

Outstanding Questions

What are the rules for Consolidated Informal Entries? TBD during a future workshop session.

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Other Entry Types

Operational Changes

• It is expected that ESAR Drop A2, will include most entry types.

o Quota entries – These will be part of Drop A2.

o Foreign Trade Zone (FTZ) Admissions (note: CBP is currently developing FTZ capabilities under ACS that will be available in ACE).

o Drawback entries – not until ESAR Drop A3, expected 2010 or later.

o TIB Entries – These are close to being analyzed and expected to be in Drop A2.

o Trade Fair Entries – These will be part of Drop A2.

Automation Changes

Outstanding Questions

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Document Presentation

Operational Changes

ACE will provide for a full separation of the payment of any DTF from the process of submitting documentation to CBP.

o This applies to transactions individually paid, paid on Daily Statements or PMS, or where no payment is required.

o This is a significant change from ACS, where the Daily Statements provided a vehicle for submission of “docs required.”

• ACE will allow for receipt of the required documents both by paper and through an acceptable electronic transmission.

• ACE will return a message that documents are required.

o This can be immediately with the ABI response

o This can also be at a later date.

• The submission of documents will be separate from the payment of duties in ACE. This will apply to all entries regardless of whether they are individually paid (i.e. non-statement), paid on Daily Statement, Monthly Statement, or where no payment is required.

o A new ACE business process will be developed for the submission of entry documents as statements will no longer be used as transmittal documents.

▪ Paper documents – TBD depending on outcome of workshops on “Documents Required” processing.

▪ EDI and Image documents.

• CBP is exploring methods of receiving electronic transmission of images.

o The trade has asked that this be implemented with ACE ESAR Release A2.

o A number of issues are being reviewed regarding licenses, permits and certificates for both CBP and participating governmental agencies.

• Broker/Importer must transmit the AII messages to CBP by the 10th working day after release.

• When paper documents or an accepted electronic transmission is not timely received, a late filing liquidated damage claim can result.

• Reminder: If there was no “docs required” message received when the Entry Summary was finalized (certification/Declaration), then you are done; unless you receive a request from CBP at a later time.

Note: The document presentation process is going to be further defined in future workshop sessions.

Automation Changes

• There will be a new ABI query that will provide, by filer, outstanding “docs required” entries – that is, where CBP’s records don’t show receipt. We asked that the query be based on number of days outstanding (i.e.: docs required over 6 days from release). (Medium) TBD pending the workshops on ‘Documents Required’ processing.

Outstanding Questions

• What acceptable electronic transmissions of Entry Summary “package” will be allowed beyond the current AII programs? A solution has not been identified TBD

o When? TBD

o What about where PGAs require paper only? This will require coordination with ITDS. Further discussion may be necessary.

• What is the status of the bar-code cover sheet that was discussed during the workshops? TBD pending the workshops on ‘Documents Required’ processing.

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Payment of Duties, Taxes and Other Fees (DTF)

Operational Changes

• ACE will allow for the current methods of duty payment:

o Individual Entry payments

o Daily Statement

o PMS

• Under ACE PMS (which is currently operating on the ACS platform) will be enhanced and refined.

• Under ACE both the Daily Financial Statements and PMS payment process will be entirely separate from the operational processing (see Document Presentation section below).

• When a PSC results in an increase or refund, and the PSC is accepted in the same month as the underlying entries, the amount will be reflected on the same PMS statement. This, essentially, acts as an offset.

o This could relieve a lot of the 520(a) requests.

Automation Changes

• Elimination of the Periodic Daily Statement (No programming changes to ABI but could result in operational changes)

• The QN (Automated Clearinghouse) transactions is modified to support other stmt/bill types (supplemental) and will be used for all ACH debit processing (medium)

• PN (Periodic Daily Statement ACH Debit Authorization/Entry Summary Presentation) transactions will be deleted.

• Changes to existing statement re-route transactions (QO) to support other bill types. (Small)

• Changes to the existing QR (Daily Statement) and MS (Periodic Monthly Statement) transactions (Medium)

• New message set related to supplemental and miscellaneous bills. These are generated individually on a weekly basis. They can be paid through ACH Debit via ABI and ACH Credit. This will also include items from the Post-Summary corrections if the corrections were made after the monthly statement was created. (Medium)

• New message set to allow for a Statement Status Query. (Medium)

Outstanding Questions

• How will the government switching to affect the rollout?

o We know that there are new routing requirements for ACH payments as of October 2005.

• The trade had asked for a query of all open accounts receivable items from CBP. Will this be provided through EDI (ABI)?

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Post-Summary Corrections

Operational Changes

• The intent of the PSC is to replace the paper SILs and PEAs with an automated system to make corrections to entry summaries that have already been filed.

• Once the Entry Summary data is accepted by ABI and the goods are released, the PSC process must be used to make any corrections.

o CBP is requiring an audit trail of all changes and versions.

o Exception: A PCS cannot be used to resolve a matter that has been flagged for Reconciliation.

o A “full replace” may be used until the goods are released.

• If Entry Summary data is initially ABI rejected, it is not necessary to use PSC to correct the summary.

• PSC will be handled in ACE similar to an underlying Entry Summary. Once ABI accepted, the PSC can also be routed within CBP to the appropriate party (anywhere in the U.S.) for review and a decision.

o No subsequent correction can be submitted for an Entry Summary until the previous correction has been resolved financially (i.e. paid / appeared on a final daily or monthly statement).

• PSC will be allowed for both header and line item changes.

o Most data fields can be changed using PSC including the participating government agencies data.

• A list of fields that cannot be changed will be developed.

o Reason codes will be required for each change.

• Specific reason codes are currently being developed and will probably include a general category with a more specific suffix.

Lines cannot be replaced when using PSC.

o Entry lines can be deleted. The deleted line number cannot be re-used.

• Census Override codes will be sent using the PSC.

• PSC will be the vehicle to flag a line for reconciliation if it was not done at the time of initial summary filing.

o However, PSC cannot be used to remove a flag. This must be done by filing a reconciliation entry.

• CBP will not limit the number of PSCs that can be filed for an entry.

o See the rules limiting non-clerical error duty refunds below, though.

o After 183 days from the date of entry, PSCs must be accompanied by a request for a one-year liquidation extension. The request will be sent as part of the PSC.

• PSCs filed during CBP’s 2-week liquidation processing cycle will be rejected.

• The current ABI processing allows for an unlimited number of replacements to the CBP-7501 data within the 10-day window after release. Under ACE this will not be allowed and all changes to the CBP-7501 will be visible to CBP.

o Today a large percentage of releases are made by certifying release from CBP-7501 data (one-step processing). Under ACE, filers may want to consider using the two-step process in situations where they may not have all necessary information at the time of release.

• The “clerical error” duty refund issue:

o Changes as a result of “clerical errors” will be allowed as often as necessary.

o PSC refunds resulting from other than “clerical errors” may trigger the immediate liquidation of the Entry, with the refund being issued at liquidation.

• This is because 520(a) only allows refunds prior to liquidation for clerical errors.

• The TSN Legal/Policy Committee is supporting legislation that would allow the use of PSC and pre-liquidation refunds for all corrections.

• Note: CBP does not, at this time, expect to use PSC for handling Prior Disclosures.

• Financial issues:

o If the PSC is accepted within same PMS period as the underlying Entry Summary, then the net amount due will appear on the statement (the original amount will be offset by any increase or refund).

o If beyond the original PMS period, then PSC increases or refunds will be processed in the next accounting cycle after CBP approval is complete.

o Interest resulting from PSCs will be handled at the time of liquidation

• Applies to both refunds and increases

• It is expected that the current de minimis rules will be applied

• The trade had asked for a query of all open accounts receivable items from CBP. Will this be provided through EDI (ABI)?

• CBP is expected to allow PSCs to be used for the following entry types: 01, 02, 03, 05, 06, 07, 08, 09, 11, 12, 21, 22, 23, 24, 25, 26, 31, 32, 34, 38, 51, and 52.

• Entry types not included are:

o 04 – Appraisement

o 33 – Aircraft & Vessel Supply

o 41-46 – Drawback

o 61 – Immediate Transportation

o 62 – Transportation and Exportation

o 63 – Immediate Exportation

o 64 – Barge

o 65 – Permit to Proceed

o 66 – Baggage

Automation Changes

• Entry Summary Corrections – Full Replace of the entire entry will not be allowed after the entry has been released and the Entry Summary has been accepted. Line numbering must remain intact after additions and deletions because the changes sent to Customs will require the line number. For each correction that will be made, a reason code will need to be sent along with the change. These changes will be sent to customs using a new CATAIR message format. (Large)

• Additional messages will be sent from CBP

• Initial ABI system acceptance or rejection

• CBP’s agreement or disagreement of the PSC. This message may include a textual component from CBP when the change is rejected. (Medium).

• Software changes may be required to delay the sending of the CBP-7501 data.

Outstanding Questions

• Can importers take advantage of any de minimis rules when they are preparing corrections where the differences in duties are, say, under $20? No. All changes need to be sent to CBP. All refunds and increases will be passed to the Finance Center who will make a determination on de minimis application.

• When we make changes on one line it will likely affect the entire summary because of residual effects on MPF and Charges. Will we have to flag all changed lines with reason codes or just the core change? This is pending further technical development TBD (Most likely it will be just the core changes).

• Can increases in duty be flagged to be paid on the next statement to minimize the associated interest payment? TBD.

• What are the rules with regard to mandatory ACE PSC for all corrections?

o How will this be handled when the importer wants to make a PSC itself on an entry filed by its broker? The importer will make the changes via the portal, based on TBD design.

o What about attorneys handling PSCs? Attorneys can be named as a user on the importer’s portal account.

• Will the extension request be automatic with the filing of the PSC or will the request for extension have to be handled separately? Request for extension will be done as part of the filing of the PSC.

• Will there be offsets on Daily Statements, similar to that for PMS, when PSCs are filed timely? Yes

• What rules will be established for utilizing PSC for prior disclosures? PSC is not the vehicle for Prior Disclosure.

• What will constitute abuse of the PSC process?

o What regulatory assurances can we get from CBP with regard to maintaining the same low level of 1592s and 1641s as we have today under the SIL process? Compliance regarding PSC are TBD

• Can PSC be done on the ACE Secure Data Portal? Discussions have taken place regarding the portal. PSC on the Portal will most likely be available after the initial A2 deployment. If changes are made on the portal, a message containing the changes will be sent back to the filer via an ABI Message.

• Can PSC be used to correct entries prior to release? TBD

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Notices and Requests for Information (CBP-28s and CBP-29s)

Operational Changes

• Importers and Brokers will be able to indicate on the ACE Secure Data Portal where and how they want notices and requests for information sent. The options will include: Mail, eMail and ABI Messages. An address, different than the 5106 address, can be specified.

o Both filers and importers of record will be notified in accordance with their individual profile.

o Non-portal importers will receive notices through the default method (paper mailing).

• Importers, brokers and others will be able to respond electronically as long as the request was not for original documents or a physical sample.

o See the discussion above regarding submission of documents.

• In the A2 drop, the -28s, CBP-29s and CBP-4647 (Notice of Redelivery) will be viewable on the web portal without the ability to respond. Future enhancements may provide the response capability on the Portal.

• A CBP-28s, CBP-29s may cover multiple entries and will be sent in the ABI message with a list of entry numbers covered by the request.

• If a request is sent where the entry number has not been assigned, the request will only be sent to the importer as the broker is unknown.

Automation Changes

• Electronic CBP-28s, CBP-29s and CBP-4647 (Notice of Redelivery) processing. This will be one or more new message sets that will include the attaching of images to the information that is being sent to CBP. (Medium to Large depending on how CBP decides to implement the image portion of this item.)

Outstanding Questions

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Reconciliation Processing

Operational Changes

• Under ACE, all flagging of an Entry Summary for reconciliation will be done at the line item level.

o We will still be able to set one flag for the entire Summary, but it will be the equivalent of flagging every line on that Summary.

• Retroactive (after original submission of the Entry Summary) flagging for Reconciliation will be allowed and will be a part of ACE Release A2.

o This will be accomplished using the PSC process and will be at the line item level.

o A Reconciliation entry must be filed once an item is flagged. There will be no canceling of flags or using PSC to remove a flag.

• Under ACE, Reconciliation entries will be filed directly into the system. The off-line spreadsheets and disks will be eliminated.

• CBP is developing a test program under ACE to automatically handle an importer’s entries that are subject to AD/CVD. For participating importers, CBP would flag AD/CVD entry lines on their entries. A reconciliation entry is prepared with an entry number assigned by the filer. Once instructions are received from the Department of Commerce, it is expected that ACE will initiate the request for an AD/CVD Reconciliation entry summary number, thereby simplifying the current process considerably.

o There are a large number of automation and operational issues that must be dealt with, as well as interagency agreements.

• CBP, after long discussions with the trade, will maintain the Aggregate Reconciliation program.

o A new transaction will be developed for mass ‘No Change’ reconciliations to close out outstanding flagged lines that will not be changed. Canceling using PSC is not an option.

• Post Summary Correction will be used to make changes to a reconciliation entry once it has been accepted by CBP.

Automation Changes

• Post Entry Summary Flagging for reconciliation. (Medium)

• Reconciliation Entry submission (“RA”) will now have to include the Entry Summary line item number. The submission will also include HTS level information that will replace current spreadsheets for both Entry by Entry and Aggregate Reconciliation (Large)

• Reconciliation Entry submission will only have to report flagged lines instead of the entire entry. (Small)

• New ABI Entry Summary Query message that will include more information than the current Entry Summary Query. (Large)

• Aggregate no-change Reconciliation entry. (Medium)

• A Post Summary Correction will be used to make the changes to a reconciliation entry once it is accepted by CBP. The mechanics of this process will be similar to the PSC for Entry Summary. This is most likely going to be a new ABI Message type. (Large)

• AD/CVD Recon request (Large)

Outstanding Questions

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Liquidation/Closeout

Operational Changes

• CBP is expected to change its liquidation process to save costs

o Most entries will liquidate by operation of law one year from the Date of Entry

o No Courtesy Notice of Liquidations will be sent

▪ Exceptions will include entries not automatically liquidated at the one-year statutory period and for increases, refunds, extensions, suspensions, etc.

Automation Changes

• Brokers and importers may want to program their systems to watch for liquidations by operation of law and set triggers to warn when a file is to be protested.

• The liquidation message (NR) will be changed to report line level changes. (Medium) Design TBD.

Outstanding Questions

• How will CBP be sending Liquidation changes to the line level instead of the header level?

• The line level changes will need to show the line number with the field that changed and its new value. The duty/fees/taxes changes will also be reflected at the line level. Design TBD.

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Refunds – Increased duty bills

Operational Changes

• Increases and refunds, other than those that are offset (as related to PSC) will be processed as usual:

o Weekly cycle

o Individual bills

Automation Changes

Outstanding Questions

• Will there be any other offsets used by CBP? CBP will retain the ability to divert a refund and offset an open receivable.

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Protest Processing

Operational Changes

• Changes to Protest processing will be minimal in ESAR release A2

• Enhanced Protest Processing will be provided in ESAR release A3

Automation Changes

Electronic protests processing is status quo.

Outstanding Questions

• Will the ACE Secure Data Portal be used to file protests?

• What parties will be allowed to use ACE to file protests? ACE protest processing will be discussed in A3

o Importers, Brokers, Attorneys, Consultants?

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Imaging of Documents

Operational Changes

• The trade has asked that CBP develop a method of receiving images of documents electronically.

o This would be in lieu of presenting paper documents at the customhouses.

o This could be used for initial presentation of documents, responses to CBP-28s and 29s, or for other exchanges, such as protest support.

o CBP has agreed to do this, but has indicated that the transmission has to be as part of standard, acceptable exchanges with CBP – such as ABI.

• The “Vision”

o It is believed that CBP will receive significant benefit from receiving documents via image, especially when combined with a well-designed workflow system. It will allow for:

▪ Centralized processing.

▪ Improved productivity.

▪ Review and balance of workload – both locally and nationally.

▪ Enhanced audit capabilities.

▪ Productivity measurement (workflow analysis).

▪ Immediate receipt of, and access to, information.

▪ Greater enforcement visibility to data in security crises.

▪ Centralized recordkeeping and retrieval.

▪ Significant monetary and personnel savings over time.

▪ Saving many trees.

o We predict that combining image, AII and internal scanning, when paper documents are received at CBP, will result, very quickly, in entirely eliminating the enormous flow of paper documents into CBP – the long anticipated “paperless environment.”

o The “paperless environment” is being widely implemented by industry. Along with greater efficiency and financial savings. There are many examples for CBP use as reference.

• The trade has also asked that this imaging be introduced when ESAR is first brought up under release A2.

• Lastly, the trade has asked that, to take advantage of the greatest efficiencies, ACE be designed so that most CBP employees never see paper, but learn to work from images of documents and data. This should be implemented as ACE is rolled out to import specialists, CBP inspectors and others used to working in a paper-intensive environment.

Automation Changes

• To be determined once CBP decides on a methodology. (Large)

Outstanding Questions

• Will CBP be willing to invest in imaging and workflow for an A2 release? Yes, this is in scope for A2. Details are TBD.

• Will the system allow Faxing into the system? No.

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Implementation/Rollout

• As of this writing, CBP expects to implement ESAR drop A2, which includes most of the items above, in mid 2008.

• National Deployment - While there is still ongoing discussion on the topic, CBP’s working model is to implement the ACE changes for all users, at all ports, on the same day.

o It is more likely that filers would only be required to bring up core components of ESAR Drop A2 on initial release. Further portions would be rolled out soon after.

▪ Everyone would still be required to have these core functions up and running for a full switch on day 1.

▪ Because this would necessarily include basic entry summary changes and PSC, there would still be a large impact on everyone from both an IT and a process/education standpoint.

• ACE will use the legacy data feed format (ABI (with the changes outlined above), and others currently used for manifest).

• There is some discussion of later designing the system to accept XML and similar modern formats that do not have the 80-byte restrictions of ABI. This would not occur until well after ESAR is up and fully functional.

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Glossary of Acronyms

❑ ABI Automated Broker Interface

❑ ACE Automated Commercial Environment

❑ ACS Automated Commercial Systems

❑ AD/CVD Anti-Dumping and/or Countervailing Duty

❑ AII Automated (Electronic) Invoice Interface

❑ CATAIR Customs and Trade Automated Interface Requirements

❑ CBP U.S. Bureau of Customs and Border Protection

❑ CBP-28 CBP Request for Information form

❑ CBP-29 Notice of Action form

❑ CBP-214 FTZ Admission form

❑ CBP-3461 CBP Entry form for release of cargo

❑ CBP-5106 Importer ID Input Record

❑ CBP-7501 CBP Entry Summary form

❑ DTF Duties, Taxes and Fees

❑ EDI Electronic Data Interchange – such as ABI, ACS and ACE

❑ ESAR Entry Summary, Accounts and Revenue – Release 5 of ACE

❑ FTZ Foreign Trade Zone

❑ ID Immediate Delivery

❑ LPC Licenses, permits, certificates and other documents

❑ PMS Periodic Monthly Statement

❑ PEA Post Entry Amendment

❑ PSC Post-Summary Correction

❑ PTT Permit to Transfer (other location, such as a FTZ)

❑ SIL Supplemental Information Letters

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Note: This Guide was prepared by trade participants and is based on our interpretation of the rules, processes and procedures being developed for ACE, ESAR. It is meant as a reference to help other members of the trade focus on issues that may affect them as ESAR is rolled out. Because of the way the Guide was prepared, there are likely to be errors and omissions – please excuse them. Log-on to the ACE website at for the most up-to-date and accurate information. The guide is also a work in process and will be updated as we learn more about the programs and our questions are answered.

Questions and comments regarding this guide can be submitted to:

@

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