82 FR 51852 - Automated Commercial Environment (ACE) Becoming the Sole CBP-Authorized Electronic Data Interchange (EDI) System for Generating, Transmitting and Updating Daily and Monthly Statements

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

Federal Register Volume 82, Issue 215 (November 8, 2017)

This document announces that the Automated Commercial Environment (ACE) will be the sole electronic data interchange (EDI) system authorized by U.S. Customs and Border Protection (CBP) for generating, transmitting, and updating daily and monthly statements for all entries except reconciliation (type 09) entries. This document also announces that the Automated Commercial System (ACS) will no longer be a CBP-authorized EDI system for processing such statements.

[Federal Register Volume 82, Number 215 (Wednesday, November 8, 2017)]
[Notices]
[Pages 51852-51853]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24336]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Automated Commercial Environment (ACE) Becoming the Sole CBP-
Authorized Electronic Data Interchange (EDI) System for Generating, 
Transmitting and Updating Daily and Monthly Statements

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 U.S. Customs and Border Protection (CBP) for 
generating, transmitting, and updating daily and monthly statements for 
all entries except reconciliation (type 09) entries. This document also 
announces that the Automated Commercial System (ACS) will no longer be 
a CBP-authorized EDI system for processing such statements.

DATES: As of December 9, 2017, ACE will be the sole CBP-authorized EDI 
system for generating, transmitting, and updating daily and monthly 
statements, and ACS will no longer be a CBP-authorized EDI system for 
such purpose.

FOR FURTHER INFORMATION CONTACT: For policy-related questions, contact 
Randy Mitchell, Commercial Operations, Revenue and Entry, Trade Policy 
and Programs, Office of Trade, via email at [email protected]. 
For technical questions, contact Celestine Harrell, Revenue 
Modernization Branch, Trade Transformation Office, Office of Trade, via 
email at [email protected] with a subject line identifier 
reading ``Statement Processing in ACE''.

SUPPLEMENTARY INFORMATION: 

I. Background

    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 an entry 
summary declaring the value, classification and 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. See 19 U.S.C. 
1484(a)(1)(B).
    Section 505 of the Tariff Act of 1930, as amended (19 U.S.C. 1505), 
establishes the requirement for importers of record to deposit with CBP 
the amount of duties and fees estimated to be payable on merchandise 
unless that merchandise is entered for warehouse or transportation, or 
under bond. According to section 141.101 of Title 19 of the Code of 
Federal Regulations (CFR), estimated duties shall either be deposited 
with a CBP officer at the time of filing of entry or entry summary 
documentation, or be transmitted to CBP pursuant to the statement 
processing method.

A. Statement Processing

    Statement processing is a voluntary automated program for 
participants in the Automated Broker Interface (ABI) which allows 
entries to be grouped on a daily basis by importer or filer, and allows 
payment of related duties, fees and taxes by a single payment. See 19 
CFR 24.1(a)(8) and 24.25 and 143.32(p). The preferred method of payment 
for users of statement processing is by Automated Clearinghouse (ACH). 
See 19 CFR 24.25(a). According to 19 CFR 143.32(p), ACS, or any other 
CBP-authorized EDI system, generates the statement, which is 
transmitted electronically to the filer, consisting of a list of entry 
summaries and the amount of duties, fees and taxes due for payment. 
Currently, the daily statements are generated, transmitted and updated 
in ACS.

B. Periodic Monthly Statement Test Program

    As an alternative to paying ACH statements on a daily basis, 
participants in the periodic monthly statements (PMS) test may pay ACH 
statements on a monthly basis. CBP announced its plan to conduct the 
PMS test on February 4, 2004 in a notice in the Federal Register (69 FR 
5362) which

[[Page 51853]]

allows importers to deposit estimated duties, fees and taxes on a 
monthly basis using ACH. A PMS summarizes daily statements into a 
consolidated statement each month for a single monthly payment by the 
15th working day of the month following the month of entry or release. 
CBP last modified and clarified the PMS test in a Federal Register 
notice (82 FR 50656) published on November 1, 2017. Currently, monthly 
statements are generated, transmitted and updated in ACS.

II. Transition Into the Automated Commercial Environment (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 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, and the Security and Accountability for Every (SAFE) 
Port Act of 2006 (Pub. L. 109-347, 120 Stat. 1884), CBP developed ACE 
to eventually replace ACS as the CBP-authorized 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 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, to be 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 to give the trade additional time to adjust their 
business practices. The first two phases of the transition were 
announced in a Federal Register notice published on February 29, 2016 
(81 FR 10264). The third phase was announced in a Federal Register 
notice published on May 16, 2016 (81 FR 30320). The fourth phase of the 
transition was announced in a Federal Register notice published on May 
23, 2016 (81 FR 32339). This notice announces a further transition as 
CBP is transitioning statement processing for both daily and monthly 
statements from ACS to ACE.

III. Announcement of Daily and Monthly Statements Being Generated, 
Transmitted and Updated in ACE

    This document announces that beginning on December 9, 2017, ACE 
will be the sole CBP-authorized EDI system for generating, transmitting 
and updating daily and monthly statements for all entries except 
reconciliation (type 09) entries, and that as of that date, ACS will be 
decommissioned for such purposes. Until reconciliation entries are 
filed in ACE, statements for reconciliation entries will continue to be 
generated, transmitted and updated in ACS. Once reconciliation entries 
are filed in ACE, ACE will be the sole CBP-authorized EDI system for 
generating, transmitting and updating all statements, and ACS will no 
longer be a CBP-authorized EDI system for such purpose.

    Dated: November 3, 2017.
Brenda B. Smith,
Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2017-24336 Filed 11-7-17; 8:45 am]
 BILLING CODE 9111-14-P