[Federal Register Volume 81, Number 39 (Monday, February 29, 2016)]
[Notices]
[Pages 10264-10267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04421]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice Announcing the Automated Commercial Environment (ACE) as 
the Sole CBP-Authorized Electronic Data Interchange (EDI) System for 
Processing Certain Electronic Entry and Entry Summary Filings

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

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ACTION: General notice.

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SUMMARY: This document announces that the Automated Commercial 
Environment (ACE) will be the sole electronic data interchange (EDI) 
system authorized by the Commissioner of U.S. Customs and Border 
Protection (CBP) for processing certain electronic entry and entry 
summary filings as of the effective dates of this notice. As of the 
effective dates of this notice, ACE will be the sole CBP-authorized EDI 
system for merchandise subject only to the import requirements of CBP 
and also to the Lacey Act import requirements of the Animal and Plant 
Health Inspection Service (APHIS), or the import requirements of the 
National Highway Traffic Safety Administration (NHTSA), or the import 
requirements of both APHIS (Lacey) and NHTSA, as well as CBP. This 
document also announces that the Automated Commercial System (ACS) will 
no longer be a CBP-authorized EDI system for purposes of processing the 
electronic filings specified in this notice. This document further 
announces the conclusion of the ACE/International Trade Data System 
(ITDS) pilots for APHIS (Lacey) and NHTSA. Electronic entry and entry 
summary filings for merchandise subject to the import requirements of 
other Partner Government Agencies (PGAs) can be submitted in ACE 
pursuant to an ongoing PGA pilot, or in ACS, until further notice.

DATES: Effective March 31, 2016: ACE will be the sole CBP-authorized 
EDI system for:
     Electronic entry summaries for merchandise that is subject 
only to the import requirements of CBP, associated with the following 
entry types: 01 (consumption), 03 (consumption--antidumping/
countervailing duty), 11 (informal), 23 (temporary importation under 
bond), 51 (Defense Contract Administration Service Region), and 52 
(government--dutiable); and
     electronic entries and corresponding entry summaries 
associated with the above entry types, for merchandise subject to the 
Lacey Act import requirements of the Animal and Plant Health Inspection 
Service (APHIS), or to the import requirements of the National Highway 
Traffic Safety Administration (NHTSA), and no other PGA requirements.
    Effective May 28, 2016: ACE will be the sole CBP-authorized EDI 
system for:
     electronic entries for merchandise that is subject only to 
the import requirements of CBP, associated with the following entry 
types: 01 (consumption), 03 (consumption--antidumping/countervailing 
duty), 11 (informal), 23 (temporary importation under bond), 51 
(Defense Contract Administration Service Region), and 52 (government--
dutiable); and
     electronic entries and corresponding entry summaries 
associated with entry type 06 (consumption--foreign trade zone), for 
merchandise that is subject only to the import requirements of CBP; or 
for merchandise subject to the import requirements of APHIS (Lacey Act) 
or NHTSA, and no other PGA requirements.

FOR FURTHER INFORMATION CONTACT: Questions related to this notice may 
be emailed to [email protected] with the subject line identifier 
reading ``ACS to ACE March 31, 2016 transition''.

SUPPLEMENTARY INFORMATION:

Background

Statutory Authority

    Section 484 of the Tariff Act of 1930, as amended (19 U.S.C. 1484), 
establishes the requirement for importers of record to make entry for 
merchandise to be imported into the customs territory of the United 
States. Customs entry information is used by U.S. Customs and Border 
Protection (CBP) and Partner Government Agencies (PGAs) to determine 
whether merchandise may be released from CBP custody. Importers of 
record are also obligated to complete the entry by filing an entry 
summary declaring the value, classification, rate of duty applicable to 
the merchandise and such other information as is necessary for CBP to 
properly assess duties, collect accurate statistics and determine 
whether any other applicable requirement of law is met.
    The customs entry requirements were amended by Title VI of the 
North American Free Trade Agreement Implementation Act (Pub. L. 103-
182, 107 Stat. 2057, December 8, 1993), commonly known as the Customs 
Modernization Act, or Mod Act. In particular, section 637 of the Mod 
Act amended section 484(a)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 
1484(a)(1)(A)) by revising the requirement to make and complete customs 
entry by submitting documentation to CBP to allow, in the alternative, 
the electronic transmission of such entry information pursuant to a 
CBP-authorized electronic data interchange (EDI) system. CBP created 
the Automated Commercial System (ACS) to track, control, and process 
all commercial goods imported into the United States. CBP established 
the specific requirements and procedures for the electronic filing of 
entry and entry summary data for imported merchandise through the 
Automated Broker Interface (ABI) to ACS.

Transition From ACS to ACE

    In an effort to modernize the business processes essential to 
securing U.S. borders, facilitating the flow of legitimate shipments, 
and targeting illicit goods pursuant to the Mod Act and the Security 
and Accountability for Every (SAFE) Port Act of 2006 (Pub. L. 109-347, 
120 Stat. 1884), CBP developed the Automated Commercial Environment 
(ACE) to eventually replace ACS as the CBP-authorized EDI system. Over 
the last several years, CBP has tested ACE and provided significant 
public outreach to ensure that the trade community is fully aware of 
the transition from ACS to ACE.
    On February 19, 2014, President Obama issued Executive Order (E.O.) 
13659, Streamlining the Export/Import Process for America's Businesses, 
in order to reduce supply chain barriers to commerce while continuing 
to protect our national security, public health and safety, the 
environment, and natural resources. See 79 FR 10657 (February 25, 
2014). Pursuant to E.O. 13659, a deadline of December 31, 2016, was 
established for participating Federal agencies to have capabilities, 
agreements, and other requirements in place to utilize the 
International Trade Data System (ITDS) and supporting systems, such as 
ACE, as the primary means of receiving from users the standard set of 
data and other relevant documentation (exclusive of applications for 
permits, licenses, or certifications) required for the release of 
imported cargo and clearance of cargo for export.
    As part of the transition to full ITDS functionality in ACE, CBP 
has been conducting tests under the National Customs Automation Program 
(NCAP). The NCAP was established by Subtitle B of the Mod Act. See 19 
U.S.C. 1411. These tests of ITDS functionality include the Partner 
Government Agency (PGA) Message Set Test (See, e.g., 78 FR 75931) and 
the Document Image System (DIS) Test (See, e.g., 77 FR 20835).
    The PGA Message Set is the data that is needed to satisfy the 
reporting requirements of other ITDS agencies and that is transmitted 
to ACE through the Automated Broker Interface (ABI). After the data is 
submitted, it is validated and made available to the relevant agencies. 
The data is used to fulfill multiple requirements and enables more 
effective enforcement and faster release decisions, as well as more 
certainty for the importer in determining logistics of cargo delivery. 
Also, by virtue of being

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electronic, the PGA Message Set eliminates the necessity for the 
submission and subsequent handling of paper documents. CBP and several 
other agencies have announced NCAP test pilot programs regarding the 
submission of required data using the PGA Message Set.
    DIS allows ACE filers to submit electronic images of a specific set 
of ITDS Agency documentation in XML format through ABI, a Secure File 
Transfer Protocol (FTP), or Secure Web Services, or as an attachment to 
an email formatted according to the specifications in the DIS 
Implementation Guidelines.
    On October 13, 2015, CBP published an Interim Final Rule in the 
Federal Register (80 FR 61278) that designated ACE as a CBP-authorized 
EDI system. The designation of ACE as a CBP-authorized EDI system was 
effective November 1, 2015. In the Interim Final Rule, CBP stated that 
ACS would be phased out and anticipated that ACS would no longer be 
supported for entry and entry summary filing by the end of February 
2016. Filers were encouraged to adjust their business practices so that 
they would be prepared when ACS was decommissioned.
    While significant progress has been made, continued concerns about 
trade readiness have necessitated an updated timeline for the mandatory 
transition to ACE for electronic entry and entry summary filing. As a 
result, CBP has developed a staggered transition strategy, to give the 
trade additional time to adjust their business practices and complete 
programming for entry and entry summary filing in ACE.
    This notice announces that, beginning on March 31, 2016, CBP will 
begin decommissioning ACS for certain entry filings (including ``entry 
summary certified for cargo release'' filings) and entry summary 
filings, making ACE the sole CBP-authorized EDI system for processing 
these electronic filings. CBP will announce the conclusion of the PGA 
Message Set and DIS pilots on a rolling basis. As each pilot is 
concluded, ACE will become the sole CBP-authorized EDI system for 
electronic entry and entry summary filings for merchandise subject to 
the specified PGA import requirements. After conclusion of a pilot, 
electronic entry and entry summary filings for merchandise subject to 
the specified PGA import requirements will no longer be permitted in 
ACS.
    This notice announces the conclusion of the pilots for filing 
Animal and Plant Health Inspection Service (APHIS) Lacey Act data and 
National Highway Traffic Safety Administration (NHTSA) data in ACE via 
the PGA Message Set.
    On August 6, 2015, APHIS published a notice in the Federal 
Register, announcing a test of the PGA Message Set for the electronic 
submission of import data required by the Lacey Act. (80 FR 46951). CBP 
and APHIS have evaluated the test for submission of Lacey Act data in 
ACE and have found the test to have been successful. The ACE PGA 
Message Set has the operational capabilities necessary to 
electronically collect the Lacey Act data required by APHIS. APHIS and 
CBP are confident that the system is now ready for full Lacey Act 
integration based on the sustained success of the pilot, which has 
experienced no data or system errors. As a result, this test has been 
concluded, as announced by APHIS in a bulletin communication on January 
22, 2016.
    On August 10, 2015, CBP published a notice in the Federal Register 
announcing an NCAP test of the PGA Message Set for the electronic 
submission of import data required by NHTSA. (80 FR 47938). CBP and 
NHTSA have evaluated the NCAP test for filing import data required by 
NHTSA in ACE, and have found the test to have been successful. The PGA 
Message Set has the operational capabilities necessary to 
electronically collect the import data required by NHTSA in ACE. As a 
result, this notice announces the conclusion of the NHTSA PGA Message 
Set test.

ACE as the Sole CBP-Authorized EDI System for the Processing of Certain 
Electronic Entry and Entry Summary Filings

    This notice announces that ACE will be the sole CBP-authorized EDI 
system for the electronic filings listed below. These electronic 
filings must be formatted for submission in ACE, and will no longer be 
accepted in ACS.
    I. Electronic filings for merchandise subject only to CBP import 
requirements:
    Effective March 31, 2016, ACE will be the sole CBP-authorized EDI 
system for electronic entry summaries filed for merchandise that is 
subject only to import requirements of CBP, associated with the 
following entry types:

 01--Consumption--Free and Dutiable
 03--Consumption--Antidumping/Countervailing Duty
 11--Informal--Free and Dutiable
 23--Temporary Importation Bond (TIB)
 51--Defense Contract Administration Service Region (DCASR)
 52--Government--Dutiable

    Effective May 28, 2016, ACE will be the sole CBP-authorized EDI 
system for electronic entries for merchandise that is subject only to 
import requirements of CBP, associated with the following entry types:

 01--Consumption--Free and Dutiable
 03--Consumption--Antidumping/Countervailing Duty
 06--Consumption--Foreign Trade Zone (FTZ)
 11--Informal--Free and Dutiable
 23--Temporary Importation Bond (TIB)
 51--Defense Contract Administration Service Region (DCASR)
 52--Government--Dutiable

    Effective May 28, 2016, ACE will be the sole CBP-authorized EDI 
system for electronic entry summaries for merchandise that is subject 
only to import requirements of CBP, associated with the following entry 
type:

 06--Consumption--Foreign Trade Zone (FTZ)

    II. Electronic filings for merchandise subject to Lacey Act import 
requirements by APHIS:
    Effective March 31, 2016, for the following entry types, ACE will 
be the sole CBP-authorized EDI system for electronic entries and entry 
summaries for merchandise that is subject to the Lacey Act import 
requirements of APHIS, unless such filings also include PGA data or 
documentation other than NHTSA data:

 01--Consumption--Free and Dutiable
 03--Consumption--Antidumping/Countervailing Duty
 11--Informal--Free and Dutiable
 23--Temporary Importation Bond (TIB)
 51--Defense Contract Administration Service Region (DCASR)
 52--Government--Dutiable
    Effective May 28, 2016, for the following entry type, ACE will be 
the sole CBP-authorized EDI system for electronic entries and entry 
summaries for merchandise that is subject to the Lacey Act import 
requirements of APHIS, unless such filings also include PGA data or 
documentation other than NHTSA data:
 06--Consumption--Foreign Trade Zone (FTZ)
    III. Electronic filings for merchandise subject to NHTSA import 
requirements:
    Effective March 31, 2016, for the following entry types, ACE will 
be the sole CBP-authorized EDI system for electronic entries and entry 
summaries for merchandise that is subject to the import requirements of 
NHTSA, unless such filings also include PGA data or documentation other 
than APHIS (Lacey) data:


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 01--Consumption--Free and Dutiable
 03--Consumption--Antidumping/Countervailing Duty
 11--Informal--Free and Dutiable
 23--Temporary Importation Bond (TIB)
 51--Defense Contract Administration Service Region (DCASR)
 52--Government--Dutiable
    Effective May 28, 2016, for the following entry type, ACE will be 
the sole CBP-authorized EDI system for electronic entries and entry 
summaries for merchandise that is subject to the import requirements of 
NHTSA, unless such filings also include PGA data or documentation other 
than APHIS (Lacey) data:
     06--Consumption--Foreign Trade Zone (FTZ)
ACS as the Sole CBP-Authorized EDI System for the Processing of Certain 
Electronic Entry and Entry Summary Filings
    Electronic entry and entry summary filings for the following entry 
types must continue to be filed only in ACS:

 02--Consumption--Quota/Visa
 07--Consumption--Antidumping/Countervailing Duty and Quota/
Visa Combination
 08--NAFTA Duty Deferral
 09--Reconciliation Summary
 12--Informal--Quota/Visa (other than textiles)
 21--Warehouse
 22--Re-Warehouse
 31--Warehouse Withdrawal--Consumption
 32--Warehouse Withdrawal--Quota
 34--Warehouse Withdrawal--Antidumping/Countervailing Duty
 38--Warehouse Withdrawal--Antidumping/Countervailing Duty &
Quota/Visa Combination
 41--Direct Identification Manufacturing Drawback
 42--Direct Identification Unused Merchandise Drawback
 43--Rejected Merchandise Drawback
 44--Substitution Manufacturer Drawback
 45--Substitution Unused Merchandise Drawback
 46--Other Drawback
 61--Immediate Transportation
 62--Transportation and Exportation
 63--Immediate Exportation
 69--Transit (Rail only)
 70--Multi-Transit (Rail only)
    Due to low shipment volume, filings for the following entry types 
will not be automated in either ACS or ACE:

 04--Appraisement
 05--Vessel--Repair
 24--Trade Fair
 25--Permanent Exhibition
 26--Warehouse--Foreign Trade Zone (FTZ) (Admission)
 33--Aircraft and Vessel Supply (For Immediate Exportation)
 64--Barge Movement
 65--Permit to Proceed
 66--Baggage

    Dated: February 25, 2016.
R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2016-04421 Filed 2-26-16; 8:45 am]
 BILLING CODE 9111-14-P