COAC, CBP Discuss Next ACE Deployments, ACE/ITDS Delays, Funding Shortfalls

The following are highlights of their comments:

RLF for ACE Entry Summaries Expected by End of Summer

CBP expects to deploy functionality to provide for the remote location filing of ACE entry summaries by the end of summer 2009. Currently, formal (type 01) and informal (type 11) entry summaries can be filed and processed in ACE.

(CBP previously announced it was delaying the deployment of this functionality due to unforeseen circumstances. See ITT's Online Archives or 06/26/09 news, 09062605, for BP summary.)

ACE AD/CVD Entries, Case Management Expected in Mid-January 2010

CBP is in the programming and testing phase for the filing and processing of type 03 (Antidumping/Countervailing Duty (AD/CVD)) entries in ACE and AD/CVD Case Management (ESAR A2.3.1a). Testing is going well and CBP expects to deploy ESAR A2.3.1a in mid-January 2010.

(See ITT's Online Archives or 06/23/09 news, 09062310, for BP summary of CBP posting draft ACE ABI CATAIR chapters for AD/CVD entry summaries and related processing in ACE.)

Additional Entry Summary Edits Expected to be Included in Next Drop

CBP is working on adding edits into the ACE entry process that the trade had asked for and CBP agreed to deliver. These edits will occur in the A2.3.2 drop, which is scheduled to be deployed after A2.3.1a.

(In 2007, CBP proposed that 63 current Automated Commercial System (ACS) edits specific to the commercial preparation of the entry summary not be carried over into ACE. The Trade Support Network reviewed and evaluated CBP's proposal and responded with 24 edits that TSN members believed were critical to keep, which CBP subsequently agreed to carry over into ACE. CBP previously stated that these edits would not be included in ACE ESAR A2.2 (ACE Initial Entry Types), but would likely be incorporated sometime before entry summary filing in ACE becomes mandatory. See ITT's Online Archives or 07/02/08 news, (Ref:08070210) for BP summary. )

No Implementation Date for M1

CBP has fallen behind on the deployment of M1 (e-Manifest: Ocean and Rail). CBP is working with its contractor to put an agreement in place for them to finish programming the M1 release. As work continues, CBP will provide a new M1 deployment date.

(See ITT's Online Archives or 07/10/09 news, 09071005, for BP summary announcing that M1 is expected to be ready for production deployment around the end of calendar year 2009.)

CBP Considering How to Move Forward with ACE in Face of Shrinking Budget

CBP is looking at the remaining ACE functionality that could be deployed and what is possible to deploy with available funding. For fiscal year 2010, the President requested $268 million for ACE/ITDS, a decrease of $48.9 million from FY 2009.

COAC is Developing an ACE Survey to Help with Funding Decisions, CBP May Ask for Third Party Study/Survey

COAC is working with CBP to create a survey that would allow trade and industry partners using ACE to provide input and list quantifiable benefits (financial) of the existing and planned components of ACE.

COAC noted that they are currently working on identifying and selecting the appropriate questions to be built into the survey. Members expressed concern that COAC may not be the appropriate group to administer a survey that could potentially lead to funding decisions. Members suggested that as alternatives the trade submit white papers on the benefits that they have received and expect to receive from ACE or that CBP ask a third party to conduct a study or survey of ACE similar to the University of Virginia's C-TPAT cost/benefit survey.

CBP is going to regroup and decide if COAC is the right group to move forward with the survey or if they should get another group. Both COAC and CBP officials agreed that the best path forward may be for COAC to conduct their survey while CBP works on getting a third party to conduct a more formal, concrete study/survey. The two surveys could be complimentary and COAC's survey, which could be completed more quickly, would offer initial feedback on a path forward.

(See ITT's Online Archives or 07/31/09 news, 09073105, for BP summary of NCBFAA's white paper outlining its ACE priorities for customs brokers.)

ITDS Functionality Delayed Due to ACE Delays, Some Agencies Developing Their Own Systems

ITDS functionality, which is tied to the development of ACE, has been delayed due to the ACE schedule slips. This has led certain agencies (such as the Food and Drug Administration, Food Safety and Inspection Service, Environmental Protection Agency, and Fish and Wildlife Service) to either continue or begin pursuing their own systems for communicating with the trade.

COAC members expressed concern over the use of other systems by government agencies, noting that it moves away from the "single-window" system concept. However, government officials noted that the agencies are still required to work with CBP on the development of ITDS pursuant to the September 2007 Office of Management and Budget directive instructing agencies participate in and utilize ITDS.

(The ITDS concept is a "single-window" system for electronic filing of import and export documentation. ITDS is not a separate computer system, but a suite of functions to be provided through ACE.)

Government Considered Focusing on Basic ITDS Functionality, Leaving Value-Added Functionality Until Later

The government has considered focusing on the development of basic ITDS functionality, such as harmonizing the data that meets all agency requirements, and working on a way to make that data available to the agencies. This would leave more of the value-added functionality, such as advanced targeting, electronic data communications system for enforcement between agencies and CBP, to be developed and deployed at a later date.