81 FR 59644 - Notice Announcing the Automated Commercial Environment (ACE) as the Sole CBP-Authorized Electronic Data Interchange (EDI) System for Processing Electronic Drawback and Duty Deferral Entry and Entry Summary Filings

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

Federal Register Volume 81, Issue 168 (August 30, 2016)

This document announces that the Automated Commercial Environment (ACE) will be the sole electronic data interchange (EDI) system authorized by the Commissioner of U.S. Customs and Border Protection (CBP) for processing electronic drawback and duty deferral entry and entry summary filings. This document also announces that the Automated Commercial System (ACS) will no longer be a CBP-authorized EDI system for purposes of processing the electronic filings specified in this notice. This notice also announces a name change for the ACE filing code for duty deferral and the creation of a new ACE filing code for all electronic drawback filings, replacing the six distinct drawback codes previously filed in ACS.

[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)]
[Notices]
[Pages 59644-59645]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20794]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice Announcing the Automated Commercial Environment (ACE) as 
the Sole CBP-Authorized Electronic Data Interchange (EDI) System for 
Processing Electronic Drawback and Duty Deferral Entry and Entry 
Summary Filings

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: This document announces that the Automated Commercial 
Environment (ACE) will be the sole electronic data interchange (EDI) 
system authorized by the Commissioner of U.S. Customs and Border 
Protection (CBP) for processing electronic drawback and duty deferral 
entry and entry summary filings. This document also announces that the 
Automated Commercial System (ACS) will no longer be a CBP-authorized 
EDI system for purposes of processing the electronic filings specified 
in this notice. This notice also announces a name change for the ACE 
filing code for duty deferral and the creation of a new ACE filing code 
for all electronic drawback filings, replacing the six distinct 
drawback codes previously filed in ACS.

DATES: Effective October 1, 2016: ACE will be the sole CBP-authorized 
EDI system for processing electronic entry and entry summary filings 
for certain entry types, and ACS will no longer be a CBP-authorized EDI 
system for purposes of processing the electronic filings specified in 
this notice.

FOR FURTHER INFORMATION CONTACT: Questions related to this notice may 
be emailed to [email protected] with the subject line identifier 
reading ``ACS to ACE October 1, 2016 transition''.

SUPPLEMENTARY INFORMATION: 

Background

Statutory Authority

    Section 484 of the Tariff Act of 1930, as amended (19 U.S.C. 1484), 
establishes the requirement for importers of record to make entry for 
merchandise to be imported into the customs territory of the United 
States. Customs entry information is used by U.S. Customs and Border 
Protection (CBP) and Partner Government Agencies (PGAs) to determine 
whether merchandise may be released from CBP custody. Importers of 
record are also obligated to complete the entry by filing

[[Page 59645]]

an entry summary declaring the value, classification, rate of duty 
applicable to the merchandise and such other information as is 
necessary for CBP to properly assess duties, collect accurate 
statistics and determine whether any other applicable requirement of 
law is met.
    The customs entry requirements were amended by Title VI of the 
North American Free Trade Agreement Implementation Act (Pub. L. 103-
182, 107 Stat. 2057, December 8, 1993), commonly known as the Customs 
Modernization Act, or Mod Act. In particular, section 637 of the Mod 
Act amended section 484(a)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 
1484(a)(1)(A)) by revising the requirement to make and complete customs 
entry by submitting documentation to CBP to allow, in the alternative, 
the electronic transmission of such entry information pursuant to a 
CBP-authorized electronic data interchange (EDI) system. CBP created 
the Automated Commercial System (ACS) to track, control, and process 
all commercial goods imported into the United States. CBP established 
the specific requirements and procedures for the electronic filing of 
entry and entry summary data for imported merchandise through the 
Automated Broker Interface (ABI) to ACS.

Transition From ACS to ACE

    In an effort to modernize the business processes essential to 
securing U.S. borders, facilitating the flow of legitimate shipments, 
and targeting illicit goods pursuant to the Mod Act and the Security 
and Accountability for Every (SAFE) Port Act of 2006 (Pub. L. 109-347, 
120 Stat. 1884), CBP developed the Automated Commercial Environment 
(ACE) to eventually replace ACS as the CBP-authorized Electronic Data 
Interchange (EDI) system. Over the last several years, CBP has tested 
ACE and provided significant public outreach to ensure that the trade 
community is fully aware of the transition from ACS to ACE.
    On February 19, 2014, President Obama issued Executive Order (E.O.) 
13659, Streamlining the Export/Import Process for America's Businesses, 
in order to reduce supply chain barriers to commerce while continuing 
to protect our national security, public health and safety, the 
environment, and natural resources. See 79 FR 10657 (February 25, 
2014). Pursuant to E.O. 13659, a deadline of December 31, 2016, was 
established for participating Federal agencies to have capabilities, 
agreements, and other requirements in place to utilize ITDS and 
supporting systems, such as ACE, as the primary means of receiving from 
users the standard set of data and other relevant documentation 
(exclusive of applications for permits, licenses, or certifications).
    On October 13, 2015, CBP published an Interim Final Rule in the 
Federal Register (80 FR 61278) that designated ACE as a CBP-authorized 
EDI system. The designation of ACE as a CBP-authorized EDI system was 
effective November 1, 2015. In the Interim Final Rule, CBP stated that 
ACS would be phased out and anticipated that ACS would no longer be 
supported for entry and entry summary filing by the end of February 
2016. Filers were encouraged to adjust their business practices so that 
they would be prepared when ACS was decommissioned.
    CBP has developed a staggered transition strategy for 
decommissioning ACS. The first two phases of the transition were 
announced in a Federal Register notice on February 29, 2016. See 81 FR 
10264 (February 29, 2016). The third phase of the transition was 
announced in a Federal Register notice on May 16, 2016. See 81 FR 30320 
(May 16, 2016). The fourth phase of the transition was announced in a 
Federal Register notice on May 23, 2016. See 81 FR 32339 (May 23, 
2016). This notice announces the fifth phase of the transition.
    In this phase, CBP will decommission ACS for all drawback and duty 
deferral filings. Additionally, CBP is removing the reference to NAFTA 
from the name of the ACE filing code 08 for duty deferral and is 
announcing a new ACE filing code 47 for drawback, which will replace 
the following decommissioned ACS filing codes:
 41--Direct Identification Manufacturing Drawback
 42--Direct Identification Unused Merchandise Drawback
 43--Rejected Merchandise Drawback
 44--Substitution Manufacturer Drawback
 45--Substitution Unused Merchandise Drawback
 46--Other Drawback

ACE as the Sole CBP-Authorized EDI System for the Processing of Certain 
Electronic Entry and Entry Summary Claims

    This notice announces that, effective October 1, 2016, ACE will be 
the sole CBP-authorized EDI system for the electronic entry and entry 
summary filings listed below, for all filers. These electronic filings 
must be formatted for submission in ACE and will not be accepted in 
ACS.
 08--Duty Deferral
 47--Drawback

ACS as the Sole CBP-Authorized EDI System for the Processing of Certain 
Electronic Entry and Entry Summary Filings

    Electronic entry and entry summary filings for the following entry 
type must continue to be filed only in ACS. CBP will publish a 
subsequent Federal Register Notice in the future when this entry and 
entry summary filing will be transitioned in ACE.
 09--Reconciliation Summary

Due to Low Shipment Volume, Filings for the Following Entry Types Will 
Not Be Automated in Either ACS or ACE

 04--Appraisement
 05--Vessel--Repair
 24--Trade Fair
 25--Permanent Exhibition
 26--Warehouse--Foreign Trade Zone (FTZ) (Admission)
 33--Aircraft and Vessel Supply (For Immediate Exportation)
 64--Barge Movement
 65--Permit to Proceed
 66--Baggage

    Dated: August 25, 2016.
R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2016-20794 Filed 8-29-16; 8:45 am]
 BILLING CODE 9111-14-P