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)

Page Range		59644-59645
FR Document		2016-20794

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 Issue 168 (Tuesday, August 30, 2016)

[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

Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / Notices 59645

an entry summary declaring the value, systems, such as ACE, as the primary • 47—Drawback
classification, rate of duty applicable to means of receiving from users the
ACS as the Sole CBP-Authorized EDI
the merchandise and such other standard set of data and other relevant
System for the Processing of Certain
information as is necessary for CBP to documentation (exclusive of
Electronic Entry and Entry Summary
properly assess duties, collect accurate applications for permits, licenses, or Filings
statistics and determine whether any certifications).
other applicable requirement of law is On October 13, 2015, CBP published Electronic entry and entry summary
met. an Interim Final Rule in the Federal filings for the following entry type must
The customs entry requirements were Register (80 FR 61278) that designated continue to be filed only in ACS. CBP
amended by Title VI of the North ACE as a CBP-authorized EDI system. will publish a subsequent Federal
American Free Trade Agreement The designation of ACE as a CBP- Register Notice in the future when this
Implementation Act (Pub. L. 103–182, authorized EDI system was effective entry and entry summary filing will be
107 Stat. 2057, December 8, 1993), November 1, 2015. In the Interim Final transitioned in ACE.
commonly known as the Customs Rule, CBP stated that ACS would be • 09—Reconciliation Summary
Modernization Act, or Mod Act. In phased out and anticipated that ACS Due to Low Shipment Volume, Filings
particular, section 637 of the Mod Act would no longer be supported for entry for the Following Entry Types Will Not
amended section 484(a)(1)(A) of the and entry summary filing by the end of Be Automated in Either ACS or ACE
Tariff Act of 1930 (19 U.S.C. February 2016. Filers were encouraged
1484(a)(1)(A)) by revising the • 04—Appraisement
to adjust their business practices so that • 05—Vessel—Repair
requirement to make and complete they would be prepared when ACS was • 24—Trade Fair
customs entry by submitting decommissioned. • 25—Permanent Exhibition
documentation to CBP to allow, in the CBP has developed a staggered • 26—Warehouse—Foreign Trade Zone
alternative, the electronic transmission transition strategy for decommissioning (FTZ) (Admission)
of such entry information pursuant to a ACS. The first two phases of the • 33—Aircraft and Vessel Supply (For
CBP-authorized electronic data transition were announced in a Federal Immediate Exportation)
interchange (EDI) system. CBP created Register notice on February 29, 2016. • 64—Barge Movement
the Automated Commercial System See 81 FR 10264 (February 29, 2016). • 65—Permit to Proceed
(ACS) to track, control, and process all The third phase of the transition was • 66—Baggage
commercial goods imported into the announced in a Federal Register notice Dated: August 25, 2016.
United States. CBP established the on May 16, 2016. See 81 FR 30320 (May R. Gil Kerlikowske,
specific requirements and procedures 16, 2016). The fourth phase of the Commissioner, U.S. Customs and Border
for the electronic filing of entry and transition was announced in a Federal Protection.
entry summary data for imported Register notice on May 23, 2016. See 81 [FR Doc. 2016–20794 Filed 8–29–16; 8:45 am]
merchandise through the Automated FR 32339 (May 23, 2016). This notice BILLING CODE 9111–14–P
Broker Interface (ABI) to ACS. announces the fifth phase of the
Transition From ACS to ACE transition.
In this phase, CBP will decommission DEPARTMENT OF HOMELAND
In an effort to modernize the business ACS for all drawback and duty deferral
processes essential to securing U.S. SECURITY
filings. Additionally, CBP is removing
borders, facilitating the flow of the reference to NAFTA from the name U.S. Citizenship and Immigration
legitimate shipments, and targeting of the ACE filing code 08 for duty Services
illicit goods pursuant to the Mod Act deferral and is announcing a new ACE
and the Security and Accountability for filing code 47 for drawback, which will
[OMB Control Number 1615–0013]
Every (SAFE) Port Act of 2006 (Pub. L.
replace the following decommissioned Agency Information Collection
109–347, 120 Stat. 1884), CBP
ACS filing codes: Activities: Application for Travel
developed the Automated Commercial • 41—Direct Identification
Environment (ACE) to eventually Document, Form I–131; Extension,
Manufacturing Drawback Without Change, of a Currently
replace ACS as the CBP-authorized • 42—Direct Identification Unused
Electronic Data Interchange (EDI) Approved Collection
Merchandise Drawback
system. Over the last several years, CBP • 43—Rejected Merchandise Drawback AGENCY: U.S. Citizenship and
has tested ACE and provided significant • 44—Substitution Manufacturer Immigration Services, Department of
public outreach to ensure that the trade Drawback Homeland Security.
community is fully aware of the • 45—Substitution Unused ACTION: 30-Day notice.
transition from ACS to ACE. Merchandise Drawback
On February 19, 2014, President • 46—Other Drawback SUMMARY: The Department of Homeland
Obama issued Executive Order (E.O.) Security (DHS), U.S. Citizenship and
13659, Streamlining the Export/Import ACE as the Sole CBP-Authorized EDI Immigration Services (USCIS) will be
Process for America’s Businesses, in System for the Processing of Certain submitting the following information
order to reduce supply chain barriers to Electronic Entry and Entry Summary collection request to the Office of
commerce while continuing to protect Claims Management and Budget (OMB) for
our national security, public health and This notice announces that, effective review and clearance in accordance
safety, the environment, and natural October 1, 2016, ACE will be the sole with the Paperwork Reduction Act of
mstockstill on DSK3G9T082PROD with NOTICES

resources. See 79 FR 10657 (February CBP-authorized EDI system for the 1995. The information collection notice
25, 2014). Pursuant to E.O. 13659, a electronic entry and entry summary was previously published in the Federal
deadline of December 31, 2016, was filings listed below, for all filers. These Register on June 7, 2016, at 81 FR
established for participating Federal electronic filings must be formatted for 36556, allowing for a 60-day public
agencies to have capabilities, submission in ACE and will not be comment period. USCIS did receive six
agreements, and other requirements in accepted in ACS. comments in connection with the 60-
place to utilize ITDS and supporting • 08—Duty Deferral day notice.

VerDate Sep<11>2014 20:04 Aug 29, 2016 Jkt 238001 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 E:\FR\FM\30AUN1.SGM 30AUN1

Document Created: 2018-02-09 11:42:10
Document Modified: 2018-02-09 11:42:10

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		General notice.
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.
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''.
FR Citation		81 FR 59644

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 SECURITYU.S. Customs and Border Protection

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

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