CBP Posts "ACE Toolkit" to its Web Site (Part III - Statements, e-Bond, Financial Impact of Post Summary Corrections, Etc.)

CBP states that ESAR will provide ACE enhanced account management functions, a single source for master data, and an integrated account-based, financial and entry summary processing system.

(An article in the Winter 2005 Quarterly NCBFAA Bulletin characterizes some of the upcoming changes as very significant and something that will fundamentally change the way Customs brokers do business. When referring to ESAR A2, one of the ACE Ambassadors quoted in the article notes that the 21st century mandate appears to be "reautomate or perish.")

This is Part III, the final partof a multi-part series of summaries on CBP's "ESAR I and II Overview" and highlights CBP's information on ESAR A2 finance business processes. CBP states that the key aspects of the second phase of account enhancements, ESAR A2, include reference data to support A2 and the introduction and/or revision of business processes relating to post release and finance. See ITT's Online Archives or 04/12/06 and 04/13/06 news, 06041205 and 06041315, for Parts I and II.

(In its February 2006 Modernization Monthly newsletter, CBP stated that the ESAR A1 phase is expected to be active in 2007 and entry summary and revenue processing capabilities will be introduced over the next several years in the A2 and A3 phases. See ITT's Online Archives or 03/03/06 news, 06030315, for BP summary of February newsletter.)

ESAR A2 Finance Business Processes

CBP has provided the following information on the listed ESAR A2 finance business processes:

Statements for payment of duties and fees. CBP states that the methods of payment of duty and fees on entry summaries eligible for periodic payment are daily and monthly. According to CBP, each statement must be fully paid - no carryover to the next statement. CBP also states that there will be one Automated Clearinghouse (ACH) authorization per statement and ACH transactions will be processed through Pay.Gov. Statements will be transmitted electronically via ABI and alternatively, portal accounts may receive their statement via email.

Supplemental duty and miscellaneous bills. CBP states that billing remains individual (that is, the netting of refunds and other disbursements is not allowed). Bills will be issued weekly (follows current entry summary liquidation cycle). According to CBP, electronic payment via ACH debit and ACH credit are available and the non-electronic payment methods remain port and lockbox. Bills are issues electronically via ABI and e-mail (portal accounts only) and issued in paper via U.S. mail (default application).

Monthly informational financial summary report. According to CBP, this is a summary of all financial activities for an account during the prior month. The reports are informational only and not a financial statement. CBP states that they will be available to ACE portal accounts and sent to the e-mail links established by the ACE account holder or his agent. The detail level can be summarized on the ACE secure data portal.

Submission of bonds electronically through e-Bond. CBP states that under e-Bond, single transaction and continuous bonds will be able to be submitted electronically. According to CBP, sureties maintain the Bond Authorization File (BAF). BAF edits determine preliminary acceptance of the e-Bond and set parameters of who can write bonds and in what amount. CBP states that all bonds, even paper, will be input into the e-Bond system.

Financial impact of post summary corrections (PSC). According to CBP:

PSC received prior to payment of original duties, taxes, and fees:

entry summary scheduled on a statement but statement not generated:

• PSC changes the original estimated duties and fees on a periodic monthly statement (PMS) to reflect the PSC
• PSC changes the estimated duties, taxes, and fees on a daily statement to reflect the PSC.

PSC resulting in additional monies owed is received after statement or individual payment of original estimated duties, taxes and fees:

PSC filed with payment of additional duties, taxes, or fees (with applicable interest) via ACH debit or check/cash

• additional monies applied to the entry summary

PSC filed with no payment of additional duties, taxes, or fees

• PSC changes including interest captured at liquidation. Interest on additional duties, taxes, fees calculated from date due to date paid or to liquidation date.

PSC resulting in a refund received after payment of original estimated duties, taxes, and fees:

refund processed with approval of PSC

refund issued with interest

interest calculated from date paid to date of refund

Changes to ABI. CBP lists the following as ABI changes:

statements are financial statements only

periodic daily statements will go away

monthly statement will list entry summaries

allow QN (transaction identifier) to be used for all ACH Debit Authorizations (the PN (transaction identifier) will not longer be needed)

new application identifier needed for routing bills to the trade community through ABI if this option is chosen

new application identifier needed to request re-routing of bills through ABI

add/update continuous bonds

ACE Took Kit available at http://www.cbp.gov/xp/cgov/toolbox/about/modernization/general_info/toolkit/.

CBP's ESAR I & II Overview (dated March 2006) available at http://www.cbp.gov/linkhandler/cgov/toolbox/about/modernization/general_info/toolkit/esar_1_2_overview.ctt/esar_1_2_overview.ppt.

BP Notes

It is important to note that CBP's ESAR I and II Overview states that the decisions, policies and solutions in that document are subject to change at any time without prior notice.

Reminder - this multi-part series of summaries has covered only one of the three documents that make up CBP's ACE Toolkit - the ESAR I and II Overview. See ACE Toolkit for details on the other two documents.