[Federal Register Volume 81, Number 99 (Monday, May 23, 2016)]
[Pages 32339-32340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12067]



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 Electronic Entry and Entry Summary Filings

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

ACTION: General notice.


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 electronic entry and entry summary 
filings associated with most entry types. 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.

DATES: Effective: July 23, 2016. ACE will be the sole CBP-authorized 
EDI system for processing electronic entry and entry summary filings of 
certain entry types, and ACS will no longer be a CBP-authorized EDI 
system for purposes of processing the electronic filings specified in 
this notice.

FOR FURTHER INFORMATION CONTACT: Questions related to this notice may 
be emailed to [email protected] with the subject line identifier 
reading ``ACS to ACE July 23, 2016 transition''.



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 (EO) 
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 EO 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.
    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

[[Page 32340]]

they would be prepared when ACS was decommissioned.
    CBP has developed a staggered transition strategy for 
decommissioning ACS. The first two phases of the transition were 
announced in a Federal Register notice on February 29, 2016. (81 FR 
10264). The third phase of the transition was announced in a Federal 
Register notice on May 16, 2016. (81 FR 30320). This notice announces 
the fourth phase of the transition. In this phase, CBP will 
decommission ACS for most entry and entry summary filings.

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

    This notice announces that, effective July 23, 2016, ACE will be 
the sole CBP-authorized EDI system for the electronic entry and entry 
summary filings listed below, for all filers. These electronic filings 
must be formatted for submission in ACE, and will no longer be accepted 
in ACS.

 01--Consumption--Free and Dutiable
 03--Consumption--Antidumping/Countervailing Duty
 06--Consumption--Foreign Trade Zone (FTZ)
 07--Consumption--Antidumping/Countervailing Duty and Quota/
Visa Combination
 11--Informal--Free and Dutiable
 12--Informal--Quota/Visa (other than textiles)
 23--Temporary Importation Bond (TIB)
 31--Warehouse Withdrawal--Consumption
 32--Warehouse Withdrawal--Quota
 34--Warehouse Withdrawal--Antidumping/Countervailing Duty
 38--Warehouse Withdrawal--Antidumping/Countervailing Duty & 
Quota/Visa Combination
 51--Defense Contract Administration Service Region (DCASR)
 61--Immediate Transportation
 62--Transportation and Exportation
 63--Immediate Exportation
 69--Transit (Rail only)
 70--Multi-Transit (Rail only)

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. CBP will publish a 
subsequent Federal Register Notice in the future when these entry and 
entry summary filings will be transitioned in ACE.

 08--NAFTA Duty Deferral
 09--Reconciliation Summary
 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

Due to Low Shipment Volume, Filings for the Following Entry Types Will 
Not Be Automated in Either ACS or ACE

 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

    Dated: May 18, 2016.
R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2016-12067 Filed 5-20-16; 8:45 am]