CBP Expects 1st Simplified Entry in Air Mode to be Filed in March 2012
According to officials at U.S. Customs and Border Protection, CBP expects the first filing of a live Simplified Entry by pilot trade participants to occur in March 2012. Testing with the trade is now expected to begin in late January or early February 2012, due to delays caused by M1’s pushed-back deployment schedule.
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(The SE pilot will eliminate the current entry data, CBP Form 3461, replacing it with a streamlined set of data. This is intended to simplify the merchandise release process, and reduce transaction costs for the trade. SE is first being piloted in the air mode only.)
M1 Causing Delay, but Provides Time for Testing by Trade
CBP officials state that SE testing with the trade is delayed largely due to a slow-down in the deployment of M1 (e-Manifest: Ocean and Rail), as the same testing and deployment capacity is used for both programs. As a result, CBP’s internal testing (which began in December 2011) is still underway. Trade participants have also asked for time to conduct internal testing, which was added to CBP’s work schedule, due to the delays caused by M1.
First Live SE in Air Mode Set for March, to Start with 1 Participant
CBP now expects to begin testing SE with trade pilot participants in the air mode by the end of January or the beginning of February 2012, with the first live Simplified Entry being filed in March 2012. CBP expects to bring in the pilot’s trade participants slowly, first adding one participant and then another, so all parties can learn, adjust, and fine-tune the SE process, in a manner that has worked well with previous automation programs.
List of Pilot Participants and Importers Involved
The pilot participants that have been announced by CBP as A.N. Deringer, Inc., Expeditors, FedEx Trade Networks, FH Kaysing, Janel Group of New York, Kuehne + Nagel Inc., Livingston International, Page & Jones, Inc., and UPS.
Pilot participants will file entries for their clients, including Nike, USA Inc.; GE Energy; LL Bean; Chrysler Group LLC; New Balance Athletic Shoe, Inc.; Ford Motor Company; Boeing; and Lear Corporation.
SE Hopes to Satisfy Both Security and Trade Concerns in Air Mode
Pilot participants will submit a reduced amount of information (12 required and three optional data elements) prior to the arrival of the air cargo.
(The SE data includes 12 required elements: importer of record; buyer name and address; buyer employer identification number (consignee number); seller name and address; manufacturer/supplier name and address; Harmonized Tariff Schedule 10-digit number; country of origin; bill of lading; house air waybill number; bill of lading issuer code; entry number; entry type; and estimated shipment value. There will also be three optional data elements including: container stuffing location; consolidator name and address; and ship to party name and address.)
As the best information becomes available, CBP has previously stated that the pre-departure portion of SE will include (i) the submission of Entry/Manifest/Air Cargo Advance Screening (ACAS) Data, and CBP's (ii) issuance of a Data Acceptance Message, and (iii) use of Targeting Systems. After departure and in-flight, CBP will issue a Conditional Status Message and CBP and the filer will resolve any holds prior to arrival. Under this process, CBP and the trade will be able to identify and address potential risks earlier in the process. (See ITT’s Online Archives 11122009 for summary of CBP’s presentation of the SE process, etc.)
(On December 27, 2011, CBP Issued two Frequently Asked Questions documents (Policy and Technical) on the ACE Simplified Entry Pilot, which will initially be for the air mode only. The Technical FAQ had stated that CBP planned to start testing data by the end of December 2011 and would be ready to test data with pilot participants by late January 2012. See ITT’s Online Archives 12010425 for summary of FAQs.
See ITT’s Online Archives 12011817 for summary of CBP’s “BEST” trade plan for the supply chain based on the broker’s role, ACE simplified entry, etc. See ITT's Online Archives 11121411 for summary of CBP working to make the ACAS pilot permanent (the ACAS pilot which began in October 2010, was in response to the terrorist incident with explosives hidden in air cargo shipped from Yemen).)