CBP Discusses Deployment of ESAR A2 at ACE Exchange V Conference

This is Part III of a multi-part series of summaries on CBP's presentations at the ACE Exchange V conference and gives a brief overview of ESAR A2, including aspects that garnered significant attention at the conference, such as: post summary corrections, the Census warning override process, changes for the CBP Forms 28, 29, and 4647, reconciliation, document processing, and eBonds, See future issues of ITT for more in-depth information about these aspects of ESAR A2, etc.

(Trade sources have previously stated that entry preparers and filers will need to prepare for the substantial changes coming with ESAR A2, and that its byword should be "reautomate or perish" in light of the reautomation and, in some cases, redesign of the entry process which will occur with ESAR A2.)

ESAR A2 Post-Release Processes

The following are overviews of information provided by CBP regarding the post-release processes that are expected to be part of ESAR A2.

Post summary corrections. Post summary corrections (PSCs) are intended to replace the existing Supplemental Information Letter (SIL) and Post Entry Amendment (PEA) process. The PSCs will initially have to be made through the Automated Broker Interface (ABI).

The time period allowed for making changes without having to request an extension of liquidation of the entry will be 183 days (approximately 6 months) from the date of cargo release.

Changes made after the 183 days, but prior to liquidation, will require a request that CBP extend the liquidation of the entry for one year.

Census warning override process. The trade community will be able to electronically correct Census warnings through the submission of an override code for entry summaries prior to or after receiving a Census warning via ABI.

CBP Forms 28, 29 or 4647. CBP sources stated that in ESAR A2, the creation of CBP Forms 28 (Request for Information), 29 (Notice of Action), or 4647 (Notice to Mark and/or Notice to Redeliver) will initiate a message to the ABI filer as well as the importer of record via the ACE portal.

Reconciliation. The flagging of reconciliation issues will be at the entry summary line item level (rather than at the header level as it is now). All un-flagged entry summary line items will be liquidated through normal entry summary due process.

AD/CV reconciliation prototype. ESAR A2 will include a prototype of a new antidumping/countervailing (AD/CV) reconciliation function, highlights of which include:

AD/CV relevant line items will be flagged for AD/CV reconciliation.

Once administrative review periods are over and reported to CBP by the International Trade Administration, ACE will send a request to filers for an AD/CV reconciliation entry summary number.

Once the AD/CV reconciliation entry number is received from the filer, ACE will assign all flagged entry summary line items to this AD/CV reconciliation document and suspend liquidation while awaiting liquidation instructions from ITA.

A new query is being developed to provide transparency to flagged entry summary line items for purposes of AD/CV reconciliation.

Document processing. CBP will be able to request documentation from the trade community using a new streamlined process. Electronic entry summary data will be reviewed by CBP users. If a determination is made that documents are required, ACE will generate a message to the filer.

Completely electronic TIBs will no longer have to be closed at originating port. CBP stated that as part of ESAR A2, Temporary Importation Bonds (TIBs), if completely electronic, would no longer have to be closed at the originating port.

Ultimate consignees new queries. The following are other post-summary process changes expected in ESAR A2:

The ultimate consignee, as defined within the CBP Form 3461, will now be supported at the entry summary line-item level of the CBP Form 7501.

Development of new queries include an enhanced entry summary query and new query containing liquidation details.

ESAR A2 Financial Processes

The following are highlights of CBP-provided information on the financial processes that are scheduled to be part of ESAR A2:

e-Bond. ESAR A2 will have a new electronic bond (e-Bond) function. Highlights include:

e-Bond will allow for the electronic submission and acceptance of single transaction and continuous bonds.

Sureties will maintain the Bond Authorization File (BAF) and BAF edits will determine preliminary acceptance of the e-Bond and will set parameters of who can write bonds and in what amount.

All bonds, including paper, will be input into the e-Bond system.

Statements. In ESAR A2, daily/monthly payment of duties and fees on entry summaries will be eligible for periodic payment.

Each statement must be fully paid and one Automated Clearing House (ACH) authorization per statement will be required.

ACH transactions will be processed through Pay.gov.

Statements will be transmitted electronically via ABI; alternatively, ACE portal accounts may receive their statements via e-mail.

Bills. Billing will remain unique to each transaction (i.e., no netting for refunds and other disbursements) and will be issued weekly. Electronic payment via ACH debit and ACH credit will be available, and bills will be issued electronically via ABI and by e-mail for ACE portal accounts.

Financial summary report. A financial summary report will be available to ACE portal accounts which will summarize all financial activities for an account during the prior month. This report will be informational only and will be sent to the e-mail links established by the ACE portal account holder or agent.

ABI. Use of QN (transaction identifier) will be allowed for all ACH debit authorizations. Use of the PN (transaction identifier) will no longer be needed. A new application identifier will be needed for routing bills to the trade through ABI. e-Bonds and e-Bond bond riders will also be submitted via ABI.

(See ITT's Online Archives or 06/08/07 news, 07060805, for Part I (ACE deployment schedule) in this series of summaries. See ITT's Online Archives or 06/11/07 news, 07061105, for Part II (Deployment of ESAR A1).)

CBP handout on ESAR A2 available by emailing documents@brokerpower.com.