ACE Webinar Basics First

ACE Webinar Basics First April 2, 2015 Welcome and Introductions Mark Hirzel Customs Consultancy Manager DHL Global Forwarding (LACBFFA President) 1

Vincent Iacopella Chief Operating Officer The Janel Group/Janel World Trade Ltd. (LACBFFA Chair and Legislative Chair) Sandra Langford-Coty Vice President, Customs Brokerage OHL International (LACBFFA Board Member and Marketing and Communications Chair) Submit questions during the webinar to: la.cbffa@verizon.net 2

CBP has established three important dates that guide the trade community s transition into ACE. Mandatory Date Explanation Electronic imp/exp manifests, for all modes of transport, must be filed in ACE Import Manifest: Impact is for Air Export Manifest: Cannot mandate filing in ACE until regulations are published Current processes for export manifest will continue to be supported, but as of 5/1/15, all ELECTRONIC manifests must be filed in ACE All electronic entries and entry summaries must be filed in ACE Includes Partner Government Agency (PGA) requirements at time of entry or entry summary Paper filings allowed today, e.g., non-abi, will continue to be supported All remaining electronic portions of cargo process must be done in ACE Protest, Liquidation, etc.

Starting discussions with your software vendor Starting discussions with your company s management if you are not the decision maker Starting discussions with your company s IT department Starting discussions with your company s operations 4

What does ACE ready mean? What functionality does your vendor have? M1 manifest QP in bond ISF Entry summary applications Simplified entry/cargo release PGA capability DIS 5

Explain the timeline and functionality to your management, IT, and operations Work with your operations and IT on how you will migrate from ACS to ACE (account, branch, or user based (ACE Entry Summary First, Cargo Release, Document management, Upload, Post Summary functions?) Getting into production By importer need POA to allow for post summary corrections By branch pilot program for certain branches By user training required at desk level By Summary and Cargo Release 6

Benefits of Filing

For brokers Increased number of paperless transactions Reduces need for CBP to process paper transactions Reduces courier handling of documents Provides competitive advantage Streamlining of operational process and cost savings If not on Summary by Nov 2015, business model challenge For importers Benefits noted above Importers with ACE portal accounts enjoy enhanced and more accurate reporting capabilities When filed in ACS, the data feeds to ACE reports CBP has developed ACE summary specific reports 9

Only entry types 01, 03, and 11 will be processed in ACE Entry Summary RLF is allowed OGA/PGA transmissions are allowed (except Lacey Act) For the filer, it should be transparent as to how the data is transmitted Filers can certify for release on ACE entry summaries ACS Cargo Release as they can with ACS entry summaries Since the entry (cargo release) process is still maintained in the ACS system, the filer will receive ABI response to their ACE entry summary via ACE ABI response to their entry via ACS 10

Work with ABI vendor to ensure they have all ABI edits in their system Establishes the foundation for the ability to process system checks on the quality and accuracy of incoming entry summary data For an update on what ACE edits are in place and the deployment schedule for edits please refer to: http://www.cbp.gov/document/guidance/acedevelopment-and-deployment-schedule 11

What s Different?

Line level party reporting Sold to party Delivered to party Foreign exporter What happened to Ultimate Consignee? The Definitions that follow are based on 19 CFR 149.3 Consignee is defined as the individual or firm in the United States on whose account the merchandise is shipped. This is the same as used in ACE Cargo Release in the SE50-record and ACE AE 11-record. The term ultimate consignee is not used in either transaction only consignee. 13

Sold To Party Name and address of the last known entity to whom the goods are sold or agreed to be sold reported as an IRS, SS# or CBP assigned format. If the goods are to be imported otherwise than in pursuance of a purchase, the name and address of the owner of the goods must be provided Mandatory for entry types 01 and 03. For type 03, AD/CVD entry types, the first unaffiliated purchaser to whom merchandise under investigation or administrative review by the Department of Commerce is sold, or agreed to be sold, for exportation to the US. 14

Delivered To Party The US party or other entity (individual or firm) identified as the first delivered-to party scheduled to physically receive the merchandise after its release from CBP custody Reported as an IRS, SS#, or CBP assigned format. Reporting is optional 15

Foreign Exporter Party The party or other entity (individual or firm) identified as the last named foreign party identified on the transaction invoice / purchase order that has a substantial financial interest in the goods and who causes the goods to be shipped by any mode of transport. This is not the transportation shipping party (freight forwarder, consolidator, or NVOCC). For consigned shipments, household effects, lease transaction and similar contractual arrangements, the name of the supplier may be provided. The supplier could be a trading company, selling agent, owner (e.g. personal effects), or similar party. Mandatory for 03 entry types. 16

AD/CVD entries Blanket non-reimbursement statements Report the declaration number for the case numbers uploaded to the portal Individual non-reimbursement statements Certify with a Y flag This guide provides instructions for locating AD/CVD cases and messages in the ACE Portal http://www.cbp.gov/sites/default/files/documents/cases_ messages_3.pdf 17

Census Warnings ACE sends a census warning message back to the filer indicating the type of census parameter violated. The filer has two options: 1. Review and correct the entry summary input data and resubmit the entry summary transaction to ACE 2. Provide the appropriate override code and submit the census warning override transaction (application identifier CW) to ACE 18

ABI filers can also pro-actively submit an override code with the ACE ABI entry summary transaction Used when the filer knows from past transactions and experience that the input values on the entry summary will fall outside the census parameters Included as part of the entry summary transaction and the census warning will be overridden when generated However, if an override code is provided and ACE determines that the input data was within the census parameters, the transaction will be rejected The override codes allow the filer to electronically resolve the Census warning independently of CBP 19

Manage ACE Entry Summary Census Errors Validate Data Entry, correct as necessary or transmit Census Warning Override prior to Statement date Trade Control Second Level Review Process to validate data entry accuracy, work with Importer to select valid Census Override Code and transmit the census warning override ACE Census Query - provides filers with entry summary data pertaining to the entry summaries which meet the query criteria and contain the unresolved Census warnings Apply for Census Parameter Change Request CSMS #10-000079 Title: Census Parameter Change Requests Run ACE Portal Report: ESM-7001 Entry Summary Census Warning and Override 20

No paper census warning sheet submitted to CBP For information on filing Census Warning Overrides with an ACE Entry Summary transaction and the complete list of Census override codes, please see ACE ABI CATAIR chapters titled Entry Summary Create/Update and Census Warning Override, Census Warning Query plus ACE ABI CATAIR Appendix H. http://www.cbp.gov/trade/ace/catair If Census warning override is not sent prior to CBP Control? Post Summary Correction Type: E = Entry PSC Reason Code: H99 -Data Change Other PSC text to explain sending Census Override Code (Only if you are not changing any data other than sending the Census Override Code) Transmit the appropriate census override code with the PSC 21

Census Warning: 27F*CENSUS* OR-HI VAL/QTY (2) Override Code(s): 04, 05, 06, 07, 08, 09, 10, 11, 15, 21, 49 or 50 Codes Description Comments 04 Prototype References new product being developed that may have a higher cost reflecting new processes, materials or other costs involved in the production of the article by the manufacturer. 05 Sample Small quantity of product, usually for product evaluation or selection. 06 Assist An assist has been added to the value of the imported merchandise. 07 One-of-a-kind The imported article is unique or the only one of its kind available. 08 Precision Made The imported article is of a higher quality or is designed to perform with greater precision than similar articles. 09 Unique Material Unique or very rare material was used to create the imported article. 10 Experimental Drug Article reflects the development of the chemical composition. 11 Military Application The imported article is made to military specifications or intended for military use. 15 Market Conditions Due to consumer demand and/or supply, the imported article has a higher or lower value than normal for similar articles. 21 Weight of Article Lighter Than Normal 49 Parameter Change Request Pending This article is made of lighter material than normally used for similar articles. All data elements verified as correct. Request with Census Bureau. Filer initiated Parameter Change 50 Correct as Entered All data elements verified correct. This article cannot be placed in any other override category. 22

Status Notifications - UC Messages

Entry Summary Status Notifications (UC Messages) Entry summary status is paperless upon acceptance by CBP of data transmitted 995 SUMMARY HAS BEEN ADDED Entry Status Notification Generated from either an automated ACE entry summary process From a CBP user request From an action taken by CBP with agreement or request from the ABI filer UC Messages indicate: Additional documentation is required Entry summary has been rejected, canceled, or inactivated Documentation has been received by CBP Liquidation date for an entry summary is changed http://www.cbp.gov/document/guidance/entry-summary-status-notification

9 Disposition Code Types UC1 UC2 UC3 UC4 UC5 UC6 UC7 UC8 UC9 Request for electronic invoice data only Request for the entry summary package Request for specified documents Entry summary rejected ACE entry summary inactivated Entry summary canceled Document receipt acknowledgement UC1 will no longer exist effective June 22 nd. Post summary correction (PSC) has been Liquidation date has changed 25

AII/RLF entry ABI system or CBP user generated Filer flags ACE entry summary with Invoice by Request or CBP initiates a team review after entry summary is filed and within 30 days. Just like ACS, transmit the Electronic Invoice (EI) EI Z flag will be indicated on the ACH Statement Response time If request received prior to cargo release submit immediately to secure release AII will not be part of If request received prior to summary filing ACE transmit Cargo prior Release to statement date Will this open the If request is within 30 days after summary filing transmit within two business days door for more Entry If request is more than 30 days after summary types filing for CBP RLF? should use CBPF 28 to request and filer must transmit within 30 days from the date of the CBPF 28 26

Filer transmits a new ACE entry summary or a Post Summary Correction via ABI ABI system or CBP user generated Submit with cover page (first page of 7501) to Team / Contact indicated in the message ACH Statement will indicate the document status as it does in ACS Alternatively, scan and upload electronically via the ACE Secure Data Portal using the Action Identification Number returned in the request, or Submit documents via Document Imaging System Response time By Entry Summary Filing Date 2 business days from the request date if after Entry Summary Filing date Watch for corresponding message type UC7 that CBP has received the requested documents Follow up with CBP as necessary to ensure docs were received 27

CBP user will request specific documents in the remarks text Send CBP only what was requested Submit with cover page (first page of 7501) to Team / Contact indicated in the message Alternatively, scan and upload electronically via the ACE Secure Data Portal using the Action Identification Number returned in the request, or Submit documents via Document Imaging System Response time: Within two business days from the request date Watch for corresponding message type UC7 that CBP has received the requested documents Follow up with CBP as necessary to ensure docs were received 28

CBP user has rejected the entry summary Filer will receive the reason code for CBP rejection Code Description 003 Classification 017 Insufficient Invoice Description CBP s remarks will provide further explanation of the reject reason Reject typically occurs after summary filing date ACE will reject a replacement entry summary transaction if the entry summary is in a CBP Reject status and the preliminary statement has been generated, but the entry summary has not yet been marked as Paid The filer may use the rejection response form to present supporting documents or remit additional payment to CBP as a result of the reject http://www.cbp.gov/document/forms/ace-entrysummary-rejection-response Response time: The filer has 2 working days to respond to this rejection The only exception is for AD/CVD entry summaries rejected after 10 working days for failure to post bond/cash for merchandise subject to antidumping/countervailing duty If the rejection is because entry should have been filed as a type other than 01, 03, or 11, CBP must inactivate the ACE entry summary so it can be retransmitted to ACS using the same entry number 29

UC5 ACE entry summary inactivated Confirmation that filer s request to inactivate summary has been actioned as requested by the filer. UC6 Entry summary canceled Confirmation filer s request to cancel summary has been actioned as requested by the filer 30

UC7 - Document receipt acknowledgement Confirmation that CBP has received requested paper documents UC8 - Post summary correction (PSC) has been presented by another filer UC9 - Liquidation date for this entry summary has changed Sent when liquidation date is originally set, unset, or reset Will return the current liquidation date for the entry summary Date will be blank and the Entry Summary Red Lined Indicator set to Y if the liquidation date has been unset 31

1 = Manual request (CBP User Initiated) Message provides filer with CBP user contact name, Team number and narrative instructions The CBP User s Telephone Number will only be provided for rejected entry summaries (UC 4) Action Identification Number will be provided in the message 2 = Automated action/request (ABI System Generated) Message generated from an automated process, filer will see the message twice Upon Entry summary selectivity processing When an entry summary is moved to CBP Control (i.e. placed on a statement), a second UC message will be provided which will contain the Action Identification Number 32

Second Level of Review for UC 1,2,3,4 messages. Process to review/respond/submit required documents or additional information ACE Portal Access and Document Imaging Security Access Daily Management of UC Messages Reports Timing of Requests Prior to or after summary filing Late responses subject to liquidated damages Ability to manage actions taken and pending 33

ACE Entry Summary Process and Policy - ACE Entry Summary Business Process Document http://www.cbp.gov/sites/default/files/documents/ace%20es%20bptrade%20v3%204.pdf 34

A Notification Date Disposition Code Remarks Action ID # Import Specialist Team Action Type Action Type Description XX-XX-XXX 2 123 2 Automated Request XX-XX-XXX 2 01XXXXXXXX01 123 2 Automated Request XX-XX-XXX 7 01XXXXXXXX01 123 1 Manual Request XX-XX-XXX 9 123 2 Automated Request B Line No Notification Date Disposition Code CBP Staff Contact Details Remarks Action ID # Import Specialist Team Action Type Action Type Desc XX-XX-XXXX 3 Name of CBP contact NEED A COPY OF INVOICE, ATTACH OR FAX AT XXX- 555-1212 007XXXXXXXXXX 123 1 Manual Request C Rejected (Disposition Type Code Disposition Code CBP Staff Contact Details Remarks Action ID # Import Specialist Team Action Type Action Type Desc 017 - Insufficient Invoice Description 4 ABC Import Specialist (Ph:55555512 12) HOW IS THE PRODUCT USED? WHERE IS THE PRODUCT USED? 009XXXXXXX2 123 1 Manual Request 35

(DIS)

Document upload for ACE entry summary in the ACE portal ACE cargo release document email process Document imaging system (DIS) DIS allows trade partners to submit document images and associated descriptive meta data to CBP and PGAs in an automated manner using EDI communication DIS will be available for ACE entry summaries only (entry types 01, 03, and 11) Includes ACE entry summaries certified for release Phase 3 of the DIS test was announced on June 25, 2014 via CSMS #14-000369 The implementation guide for DIS and related documents are available on the CBP website at: http://www.cbp.gov/sites/default/files/documents/dis_implementati on_guide_3.pdf 37

The trade could receive a UC message for The entire entry summary package For specific documents For an electronic invoice if the filer is operational for Automated Invoice Interface (AII) The trade could also receive a CBP Form 28 or 29 requesting the information ACE portal may only be used to upload CBP documents where an Action Identification Number is provided (solicited documents) For PGA forms, the trade may submit the required documents without a prior request (unsolicited documents) The acknowledgement of receipt is sent back to the sender as an XML message in their ABI DIS MQ Queue Trade benefits of DIS include: Initiation of single window submissions from the Trade to CBP and PGAs Nationwide visibility for CBP and PGAs to trade-submitted documents Central repository for documents submitted by the trade Reduction in time and cost surrounding paper processes 38

For detailed information on the ACE Secure Data Portal, the presentation from CBP s July 22 nd webinar is posted here: http://www.cbp.gov/sites/default/files/docu ments/interacting_with_ace_%20edi_portal_p resentation.pdf 40

Importer/Broker with Account Access may upload documents in response to CBP Forms 28, 29, or 4647 May upload documents in response to CBP ABI Entry Summary Status Notification message (UC message) Must have Action # in order to link the images to the request Unsolicited documents not permitted 41

Step 1: Click on Upload Documents Step 2: Enter the Action # from the ABI UC2 Message Step 3: Browse the File, Attach the File and Click on Save 42

UC7 43

Affidavit of Manufacture Provided by producer of raw materials used in a finished article for which a duty preference claim is made. Not for use with 9802 claims. Importer Certifying Statement Importer statement to declare they qualify for a free trade agreement or tariff preference program Non-Reimbursement Blanket Statement (Antidumping/Countervailing Duty) North American Free Trade Agreement (NAFTA) Certificate of Origin 44

Can be created to support both ACS and ACE entry summaries Blanket declarations are created by entering appropriate data, and uploading the document Online training available at: http://nemo.cbp.gov/ace_online/ad_cvd/index.ht m Detailed instructions can be found at: http://www.cbp.gov/sites/default/files/documents /declarations_2009_3.pdf 45

Within the ACE portal, go to the Accounts tab, select importer view and then the Declarations hyperlink If the importer has an ACE portal account, the broker will need access to their portal If the importer does not have an ACE portal account, the broker can create using the non-portal account option Select Create 46

NAFTA certificates of origin must be uploaded Other declarations do not require the image to be uploaded, but CBP encourages it Declarations may not be deleted, but they may be cancelled 47

Portal Applications The application to request your free ACE Portal account as well as instructions and tutorials can be found on CBP.gov http://www.cbp.gov/sites/default/files/documents/ace_portal_app_3.pdf http://www.cbp.gov/sites/default/files/documents/initial_acct_access_3.pdf Web Based Training for each release http://nemo.cbp.gov/ace_online Cargo Systems Messaging Service A subscription based, broadcast message system for users of CBP automated commercial trade system http://apps.cbp.gov/csms/ www.cbp.gov/trade/automated Getting Started with ACE Federal Register Notices Training and Reference Guides Technical Documentation 48

1 2 4 1. Left hand navigation: Getting Started Technical Documentation, such as CATAIR, IGs, etc. ACE Features links to more detail on ACE Border Interagency Executive Council 2. Middle column updated with latest news/headlines 3. Gray box below News column (pictured): Always on the main page Links to ACEopedia, Schedule, Events Calendar 4. Right hand navigation: Portal Login Page CSMS ACE Outreach Events TSN AskACE@cbp.dhs.gov

Technical Support General Support News & Training For technical support with the ACE system, functions or data, please contact: For non-technical inquiries please submit questions to: For non-technical inquiries please submit questions to: ace.support@cbp.dhs.gov askace@cbp.dhs.gov cbp.gov/aceoutreach (866) 530-4172 cbp.gov/trade/ace/training-andreference-guides apps.cbp.gov/csms/csm s

To register visit: http://www.lacbffa.org April 2 April 14 April 23 April 30 May 4 May 7 May 15 June 4 June 17 June 18 July 9 September 3 October 7 December 17 ACE Webinar Terminal, Harbor Tour & Luncheon Port Congestion Dinner FDA - Best Practices Workshop ACE Webinar #II FDA Product Code Training World Trade Week Lunch with FTA & WIT-LA ACE Webinar #III Classification Electronics Workshop FDA Reorganization Dinner Carnet Workshop Classification Footwear Workshop Classification Apparel Workshop Holiday Casino Night 51

Presentation will be posted to: http://www.lacbffa.org/ Submit questions to: la.cbffa@verizon.net