Trade Support NetworkACE Concept Paper

June 4, 2002Millie Gleason

Robert Hamilton

John Durant

Methods of Filing

Traditional Entry Summary– 10 Days – Electronic Payment

10 Days Monthly Periodic Payment Date

Importer Activity Summary Statement (IASS)– Monthly Filing– Electronic Periodic Payment

Periodic Payment System

Commissioner’s Mandate of Revenue Neutrality

1st-15th: Monies due on 22nd

16th-End of Month: Monies due on 7th

Netting Payments and Refunds

AD/CVD

ACE Will Allow Commerce to Transmit Dumping Orders and Liquidation Instructions and other AD/CVD Case Information Electronically

This Process Will Automatically Suspend All Line Items Identified Within an Order

Reconciliation Flag Whole Entry or Just Specific Line Item

Retroactive Flagging

Issues Include Current Elements as well as Other Elements not Affecting Admissibility

Accounts Will Be Able to View All Flagged Entries and Customs Figures

Reconciliation

If Line Item is Flagged for NAFTA, Reconciliation is the ONLY Method of Making Claim

Filers will Have 21 Months to Reconcile Outstanding Issues vs. 15 Currently

Off-Line Spreadsheet No Longer Necessary

Elimination of SILs/PEAs

ACE Will Allow Line-Item Corrections of Clerical Errors to be Made Electronically by the Filer Without Customs Involvement

This Will Eliminate Submission of Paper Documents and Quarterly Reporting Requirements

Extension/Liquidation

Unless Notified, Account May Assume That Liquidation Will Occur One Year from Date of Summary

Courtesy Notices of Liquidation Will Be Replaced By Account Portal Access

Paper Bulletin Notices Will No Longer Be Posted in Customhouse

Extension/Liquidation (Con’t)

ACE Will Perform Extension/Liquidation at Line Item and Summary Level (This Includes IASS and Reconciliation)

No Change Liquidation Under ACE Means That the Monies Deposited by the Account Were Found Acceptable at Date of Liquidation

Protests

Current Law Provides for 90 Days from Liquidation for Protest; One Year for Petition

Under ACE, a Six Month Period from Date of Liquidation to File All Protests/Petitions

AFRs Will Be Filed Electronically with Submission of Protest

Export of Merchandise

ACE Will Link to AES

Customs Favors a Simplified Drawback Program Based On a Consensus Proposed with the Trade that is MUTUALLY BENEFICIAL

Drawback Refunds Will be Issued by Periodic Statement

General Import Profile

24 Million Entries; $25 Billion 99% Electronic; 72% Paperless 460,000 Importers

– 39% Made a Single Entry– 75 % Made 1-9 Entries– 5% of Importers = 78% of Entries by Value

By Importer = Top 100 = 33%, Top 1000 = 59%, Top 3000 = 72%

IASS

IASS (Monthly Entry)

Legal Implications

Release #1 Release #2 Release #3

IASS Design Questions

What is the “Legal Entity”?– Is it 1 Monthly Summary?

or– Is it 3 Entries Grouped on a Monthly Basis (like

ABI Daily Statement)? When Do I Have a “Late Entry”? What is “Extended/Suspended”? What is “Liquidated”?

IASS Design Questions

Customs Currently Extends .7% of the Entries -- What are the “Monthly” Implications?

Customs Will Insist on No “Split” Legal Liability. There are Impacts For:

– Brokers

– Sureties

Proposed Solution

Need Capability for Line Item Extensions/Suspensions/Liquidation

How? In Appropriate Sections Where It Says “Entry” add “or Line Item”

Interest Implications

If IASS Must Be Revenue Neutral then Customs Must Know Detailed Release Information

BUT,

There Must Be a Simpler Way!

There Is!

1. Change the Law to “No Interest Due” on IASS

OR

2. Change to a Simpler Interest Law, e.g. Average Daily Balance or Mid-Point

Deemed Liquidation

ACE Will Liquidate Via “Deemed Liquidation”

Therefore, Your Date of Liquidation Can Be Date of Summary + One Year

Can Be Done if We Change Deemed Liq Law to Read “One Year from Date of Summary”

Other Major Benefit: Far Less Confusing!

Protest Proposal

We Believe Protest vs. 520(C) is Confusing and Needs to be Simplified

Customs Proposal: 1. Extend Current 90 Days Protest Period to 180 Days. 2. Trade Off is to Eliminate One Year 520(C) Provision 3. Customs Keeps Current 90 Day “501 Authority” 4. Customs Agrees That “Protest” Involves All Aspects of

the Customs “Transaction”

AW SHUCKS!

WHAT AN HONOR!!!

Questions/Comments/Concerns