83 FR 2644 - Automated Commercial Environment (ACE) Becoming the Sole CBP-Authorized Electronic Data Interchange (EDI) System for Processing Electronic Drawback Filings

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

Federal Register Volume 83, Issue 12 (January 18, 2018)

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 processing electronic drawback filings under part 181 (NAFTA drawback) and part 191 (non-TFTEA drawback) of Title 19 of the Code of Federal Regulations. This document also announces that the Automated Commercial System (ACS) will no longer be a CBP-authorized EDI system for purposes of processing such filings. This notice further announces the deployment of a new ACE filing code for all electronic drawback filings, replacing the six distinct drawback codes previously filed in ACS.

[Federal Register Volume 83, Number 12 (Thursday, January 18, 2018)]
[Notices]
[Pages 2644-2645]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00803]


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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 Processing 
Electronic Drawback 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 U.S. Customs and Border Protection (CBP) for 
processing electronic drawback filings under part 181 (NAFTA drawback) 
and part 191 (non-TFTEA drawback) of Title 19 of the Code of Federal 
Regulations. This document also announces that the Automated Commercial 
System (ACS) will no longer be a CBP-authorized EDI system for purposes 
of processing such filings. This notice further announces the 
deployment of a new ACE filing code for all electronic drawback 
filings, replacing the six distinct drawback codes previously filed in 
ACS.

DATES: As of February 24, 2018, ACE will be the sole CBP-authorized EDI 
system for processing drawback filings under part 181 (NAFTA drawback) 
and part 191 (non-TFTEA drawback) of Title 19 of the Code of Federal 
Regulations, and ACS will no longer be a CBP-authorized EDI system for 
such purpose.

FOR FURTHER INFORMATION CONTACT: Randy Mitchell, Commercial Operations 
and Entry Division, Trade Policy and Programs, Office of Trade at (202) 
863-6532 or [email protected].

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, 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.

II. Transition Into the Automated Commercial Environment

    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 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. 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. Filers were encouraged to 
adjust their business practices so that they would be prepared when ACS 
was decommissioned.
    CBP developed a staggered transition strategy for decommissioning 
ACS. The phases of the transition were announced in several Federal 
Register notices. See 81 FR 10264 (February 29, 2016); 81 FR 30320 (May 
16, 2016); 81 FR 32339 (May 23, 2016); 82 FR 38924 (August 16, 2017); 
and 82 FR 51852 (November 8, 2017). This notice announces another 
transition as the processing of electronic drawback filings under parts 
181 and 191 of title 19 of the Code of Federal Regulations (CFR) is 
transitioning into ACE.

[[Page 2645]]

III. ACE as the Sole CBP-Authorized EDI System for the Processing of 
Electronic Filings of NAFTA Drawback and Non-TFTEA-Drawback

    This notice announces that, beginning February 24, 2018, ACE will 
become the sole CBP-authorized EDI system for electronic filings of 
NAFTA drawback (19 CFR part 181) and non-TFTEA drawback (19 CFR part 
191), and ACS will no longer be a CBP-authorized EDI system for 
purposes of processing these electronic filings. A separate Federal 
Register document will be published containing proposed regulations 
regarding TFTEA-Drawback claims, which are those claims filed under 19 
U.S.C. 1313, as amended by the Trade Facilitation and Trade Enforcement 
Act of 2015 (TFTEA) (Pub. L. 114-125, 130 Stat. 122, February 24, 
2016). The electronic filings referred to in this document, i.e., non-
TFTEA drawback claims, are limited to drawback claims filed in 
compliance with the regulations in parts 181 and 191 and under 19 
U.S.C. 1313, as it was in effect prior to the TFTEA amendments.

IV. Deployment of New Filing Code for Drawback in ACE

    CBP announces the deployment of a new ACE filing code 47 for 
drawback as of February 24, 2018, which will replace the following six 
drawback codes previously filed in ACS:

 41--Direct Identification Manufacturing Drawback
 42--Direct Identification Unused Merchandise Drawback
 43--Rejected Merchandise Drawback
 44--Substitution Manufacturing Drawback
 45--Substitution Unused Merchandise Drawback
 46--Other Drawback

V. Entry Types With Low Shipment Volume

    This notice announces that the following entry types will not be 
automated in either ACS or ACE due to low shipment volume:

 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: January 12, 2018.
Kevin K. McAleenan,
Acting Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2018-00803 Filed 1-17-18; 8:45 am]
 BILLING CODE 9111-14-P