Details of CBP Inviting 9 to Test ACE Simplified Entry Starting Dec 31 (for Air Mode)

(Filing of the Simplified Entry Data is considered customs business for purposes of 19 USC 1641. The party filing Simplified Entry Data must have the right to make entry as provided in 19 USC 1484. Accordingly, only the importer or customs broker acting on the importer’s behalf may submit this filing. This will not change as the test is rolled out.)

Initial Test Phase Will Begin About December 31 and Run for About Two Years

The initial phase of the test will begin on or about December 31, 2011 and will run for approximately two years. CBP will begin an evaluation of the initial phase of the test after it has been ongoing for approximately 90 days for purposes of possible extension or expansion of the test to other modes of transportation.

Initial Test Phase Limited to 9 Accounts, CBP Seeks Importers and Brokers

CBP will limit the initial phase of this test to nine accounts, however, CBP can raise this limit should testing capabilities allow. CBP is looking for test participants to include at least one or more importer self-filers and one or more brokers.

Importers seeking to participate must hold a Tier 2 status or higher in the Customs-Trade Partnership Against Terrorism (C-TPAT). Brokers seeking to participate must be C-TPAT certified.

Simplified Entry Data Will Be in Lieu of Filing CBP Form 3461

CBP states that filing of Simplified Entry Data is in lieu of filing a CBP Form 3461 or its electronic equivalent. It is not in lieu of filing an entry summary as both an entry and entry summary as permitted by 19 CFR 142.19. All entry summaries resulting from Simplified Entry Data release must be made in ACE. Additionally, for this first phase of the test, Simplified Entry Data will only be accepted for entries that do not fall under the admissibility jurisdiction of Other Government Agencies (OGAs).

Only Applies to Entries Filed in Air Mode, Type 01 &11 Entries, Etc.

For the initial test phase the following rules apply:

• Only for air mode. The initial test is for entries filed in the air transportation mode. Land border arrivals, both truck and rail, and vessel ocean arrivals will be included in later stages of the test.
• Only for Type 01 & 11 entries, etc. The Simplified Entry filing will only be allowed for Type 01 (formal) and Type 11 (informal) consumption entries. Participants cannot file an entry summary in lieu of the simplified entry.
• Continuous bond must be used. No formal entry filed under Simplified Entry can be released under a single transaction bond (STB). A continuous bond must be used.
• Doesn't include split shipments, etc. The filing of entries on split shipments or unassembled or disassembled entities will not be supported in the initial phase of the test.
• Port of arrival and entry must be same. The port of arrival and the port of entry and unlading must be the same for any Simplified Entry filed.
• Manifested & release BOL quantity count must match. The manifested bill of lading quantity count and the release bill of lading quantity count covered by the Simplified Entry must match.
• Cannot amend entry after CBP release. Once CBP sends a release message, participants cannot send another simplified entry to replace or amend the one previously filed.

Reduces Data Elements for Entry to 12 Required, 3 Optional

In an effort to simplify the merchandise release process, allow for more streamlined electronic transmission for the filing broker, stand alone filer, and/or importer, and assist importers in finalizing cargo movement logistics, CBP is announcing this test to reduce the number of data elements required to obtain release of products for cargo transported by air.

12 data elements required instead of 27. In lieu of filing CBP Form 3461, which contains 27 data elements, the importer or broker acting on behalf of the importer must file the following 12 data elements (to be known as the Simplified Entry Data Set or Simplified Entry Data) with CBP². The Simplified Entry Data Set may be filed at any time prior to the arrival of the cargo in the U.S. port of arrival with the intent to unlade.

1) Importer of Record Number

2) Buyer name and address

3) Buyer Employer Identification Number (consignee number)

4) Seller name and address

5) Manufacturer/supplier name and address

6) HTS 10-digit number

7) Country of origin

8) Bill of lading/house air waybill number

9) Bill of lading issuer code

10) Entry number

11) Entry type

12) Estimated shipment value

3 data elements optional. For the air environment in the initial test phase, the entry filer, at his option, may also provide the additional three data elements:

13) Ship to party name and address (optional)

14) Consolidator name and address (optional)

15) Container stuffing location (optional)

CBP Release. Upon receipt of the Simplified Entry Data, CBP will make all decisions with regard to release of the merchandise and will transmit its cargo release decision to the filer. Releases will be made at the house bill level. The merchandise will then be considered to be entered upon its arrival in the port with the intent to unlade.

CBP Seeks Comments to Determine if Test Should be Modified, Etc.

CBP seeks comments on any aspects of the planned test -- including the design, conduct and implementation of the test -- in order to determine whether to modify, alter, expand, limit, continue, end or implement this program by regulation. The final results of the evaluation will be published in the Federal Register and the Customs Bulletin.

Any future expansion in ACE including but not limited to any new Simplified Entry Data, the timing of submission of the data, or messaging between filers and CBP, will be announced via a separate Federal Register notice.

*This notice has been corrected to state that parties interested in participating in the test must submit an email to CBP by November 17, 2011, instead of November 16, 2011. See CSMS Message #11-000281 (available here) for CBP notice providing this clarification.

¹The NCAP was established by the Customs Modernization provisions of the North American Free Trade Agreement Implementation Act. Through NCAP, the initial focus of customs modernization was on trade compliance and the development of the Automated Commercial Environment (ACE). CBP’s modernization efforts include phased releases of ACE component functionality designed to replace a specific legacy function of the Automated Commercial System (ACS). Each release will begin with a test and will end with mandatory compliance with the new ACE feature to retire the legacy ACS function. Each release builds on previous releases and sets the foundation for subsequent releases.

Through the NCAP process, CBP is testing the ACE Entry Summary, Accounts and Revenue (ESAR) capabilities. CBP is also conducting a NCAP test concerning the transmission of required advance ocean and rail data through ACE (e-Manifest: Ocean and Rail or M1). (See ITT's Online Archives 08082700 and 10102007 for summaries.)

²Data element (1) and data elements (6) through (12) are defined in the same manner as when they are used for entry filing on the CBP Form 3461. Data elements (2) through (5) and (13) through (15) are defined in accordance with the provisions of 19 CFR 149.3.

(See ITT's Online Archives 11110815 for initial summary of CBP's ACE simplified entry test.

See ITT's Online Archives 11100510 for summary of CBP stating it planned for a Simplified Entry pilot before the end of 2011.)

Any party seeking to participate must submit an email to cbpsimplifiedprocess@dhs.gov with the subject heading "Simplified Entry Participant Request."

CBP Contacts -

Policy questions: Steve Hilsen stephen.hilsen@dhs.gov

Technical questions: Susan Maskell susan.maskell@dhs.gov

CSMS Message #11-000280 announcing this test is available here.

(FR Pub 11/09/11)