Highlights from CBP's September 2005 Trade Support Network Plenary Session Notes (Part II - Final)

This is Part II, the final part of a two-part series of summaries on these TSN Plenary session notes and highlights CBP's answers to questions posed by the TSN during the September 29, 2005 session. (See ITT's Online Archives or 12/22/05 news, 05122210, for Part I.)

(CBP has been meeting with the TSN since May 14, 2001 regarding the development of the Automated Commercial Environment (ACE) and has stated that the TSN has over 150 members of the trade community, including trade associations, importers, brokers, carriers, sureties, and others.)

Highlights from the Legal/Policy, Etc. Update

Post summary corrections through ACE portal. The trade had numerous comments regarding the ability to make post summary corrections, noting that they are hopeful that requirements are put into future releases of Automated Commercial Environment (ACE) for importers to make their own post-summary corrections through the ACE Portal. The trade states that it realizes that initial releases will be done via ABI but that they also want to make sure that importers have the ability to do this on their own via the Portal.

CBP states that is recognizes the trade's concerns and that post summary corrections are scheduled July 2007 as part of the Entry Summary, Accounts and Revenue (ESAR) A2 release.

CBP was also questioned regarding its rationale for putting the post summary correction process in ABI when it would be shortly going to ACE.

ITDS. In response to a trade question on whether in CBP's meetings with other government agencies, any of those agencies have bought into the overall risk management process (on an account basis), CBP stated that it is seeing some movement in that direction and is encouraging that approach with the other agencies.

Post summary corrections will not replace prior disclosures. CBP stated that post summary corrections will replace supplementary information letters (SILs) and post entry amendments (PEAs), but will not replace prior disclosures.

Highlights from the Importer, Exporter, and Surety Breakout

ACH credit. In response to a trade question about CBP's August 8, 2005 Federal Register notice which stated that ACH credit participants were required to "initiate payment no later than the 14th working day of the month," CBP states that it will be publishing a Federal Register notice clarifying that it did not intend to tell ACH credit participants when they needed to push out the payment. CBP states that it simply wants the deposit to be made on the 15th.

Revision of non-portal accounts to a portal account. When questioned about whether there is a process in place for a non-portal account to revert to a portal account, CBP stated that it should not be a problem and that it would be same process today for the trade when they ask to participate in the ACE portal.

Financial statements. CBP stated that financial statements will be included in ACE Release 5 and will only be available via the Portal. CBP further stated that it is unclear what the financial statement will look like, but it should include a picture of the net financial activity for that month. According to CBP, this is the first step toward moving to a credit card concept.

Highlights from the Broker/Freight Forwarder/Vendor Breakout

Automation of broker, warehouse, and FTZ administrative requirements. CBP states that currently brokers, warehouses, and foreign trade zones (FTZs) send a paper list of employees to CBP when there are changes. However, CBP notes that in ESAR (Release 5) A1 this will be done through the portal, via a report. CBP also notes that triennial fees will be included in ESAR A2, as will the automation of the broker's annual fee. According to CBP, registration for the broker's exam was also discussed through the portal or via the web.

Reconciliation. CBP made numerous comments regarding reconciliation, including stating that the main change for reconciliation will be that the trade will be flagging at the line item level. CBP also noted that retroactive flagging will be part of ESAR A2. CBP further noted that deflagging will not be allowed; however, the trade will have an opportunity to file a simplified aggregate reconciliation to close all the flags on all of the "no change" entries.

CBP's September 2005 TSN Meeting Plenary Session Notes available at http://www.cbp.gov/xp/cgov/toolbox/about/modernization/trade_support_network/sep2005_meet_highlights/notes/.