From our friends at NCBFAA and Cindy Allen, Founder and CEO of Trade Force Multiplier, and former Executive Director of the ACE Business Office at Customs and Border Protection:
Understanding the PGA Cargo Release Responses (SO70)
The following chart was created to understand the expected initial messages that are auto-generated by CBP as a response to the transmission of a PGA regulated entry.
||Initial SO70 (generated by CBP)*
|EPA- ODS, VNE, PS1, PS2, PS3
||DATA UNDER PGA REVIEW
|EPA- TS1, TS2
||DATA UNDER PGA REVIEW
||HOLD INTACT for ‘MO1’. All others are ‘MAY PROCEED’
||MAY PROCEED (even if Bucket 2 rule fires)
||HOLD INTACT (Equines only)
||MAY PROCEED (even if Bucket 2 rule first)
*In the case of a disclaimed entry for ANY agency, there will be no SO70 generated to trade.
*The information that is received in ACE is not transmitted to the PGA until 5 days prior to the shipment’s arrival. Filers should not expect to receive anything other than an “UNDER REVIEW: response in the SO70 record until 5 days prior to arrival. At that point the edit checks and auto review will happen at the agency within their system.
For any agency, if at least one edit check or auto review at the agency creates an issue for the PGA that they want to review before issuing further responses, (known as a bucket-2 rule) then an “UNDER REVIEW” response in the SO70 Message will be sent to Trade, otherwise trade will receive a MAY PROCEED in the SO70 message. There are some exceptions to this process.
For members of the trade in the Los Angeles area: Women in International Trade – Orange County chapter is presenting a Trans-Pacific Partnership workshop and luncheon on February 4 in Costa Mesa, California.
The Trans-Pacific Partnership is a huge game changer for trade with much of the Pacific Rim and offers significant duty savings both in the United States and in the partner TPP countries. If you import/export in any of the 12 TPP countries (Canada, US, Mexico, Japan, Chile, Australia, New Zealand, Singapore, Malaysia, Vietnam, Brunei, Peru), this workshop will get you up to speed on the new provisions of the TPP!
The speaker will be Michael Roll, of Pisani and Roll LLP in Los Angeles, who is an accomplished international trade lawyer representing clients in all areas of import-export laws and regulations.
Get more information and register for this event here.
The National Customs Brokers & Forwarders Association of America has issued a press release regarding its January 8 open letter to its members, questioning US Customs’ ACE implementation schedule.
Although NCBFAA “has endorsed ACE as a vastly superior to its predecessor (ACS),” the organization has expressed grave concerns that programmers’ ability to thoroughly test all new ACE functionality will be seriously hampered by the lack of sufficient time to do so in light of the looming February 28 transition date. In particular, NCBFAA notes:
Software refinements continue and system updates are being processed on an almost daily basis. In fact, some entry functions (such as the process for placing goods in a bonded warehouse), will not be available [for testing] until the last minute, February 28….
Accordingly, NCBFAA has requested a complete stop to all software changes for processes going into effect on February 28 to allow for meaningful and complete testing before launch.
According to the January 2016 edition of American Shipper*, the United States and Mexico have taken considerable steps towards an integrated border management system between the two countries that offers pre-inspection of cargo before it crosses the border.
- Clearing cargo in advance relieves pressure on ports of entry that are often congested during peak traffic periods
- Expediting the flow of cargo creates more efficiency for businesses and provides incentives for them to increase their level of international trade
- In October 2015, the US Department of Homeland Security and Mexican official signed a memorandum of understanding that allows customs officers from both countries “to work side-by-side for the first time enforcing their respective trade and security regulations on each other’s soil.”
- Three pilot programs:
- Laredo, Texas airport — Mexican customs officers are physically located here and pre-screen air cargo shipments by looking at advance shipment information and the manifest. Suspicious cargo can be pulled for inspection prior to loading.
- Otay Mesa crossing (San Diego and Tijuana) — Launching in early 2016, CBP officers and agricultural specialists will be stationed in the Mexican compound to inspect agricultural products moving on truck to the US.
- Santa Theresa, NM/Juarez checkpoint — Planning in place for joint inspections of shipments originating from, and arriving at, giant maquiladora assembly plant operated by Foxconn for Dell and other major electronics retailers.
Here’s the current status of filing PGA entries (Cargo Release) in ACE. Per CSMS #16-000038, this guidance is valid through February 1, 2016, unless updated instructions are available sooner.*
- Beginning Feb 28, 2016, all entries (Cargo Release) (with limited exceptions) and entry summaries must be filed in ACE. By then, CBP will be able to accept entries with the PGA data for FDA, NHTSA, and APHIS (Lacey.)
- Presently, it is no longer necessary to participate in a pilot for FDA (Disclaim), NHTSA and APHIS (Lacey.) CBP has opened them up to the public and they are already operational. There is no need to wait until February 28; you can file ACE entries with these PGAs and get a release now. CBP implores users to file these transactions in ACE immediately.
- All other entries containing FDA PGA data must be tested through the FDA Pilot before you can be authorized to send this information in Production before February 28. Also, APHIS (Core) transactions still require a pilot call at this time.
- For any other agencies, like EPA, from Feb 28 to July 2016, filers must follow the hybrid process which essentially means you send the declaration form via the DIS.
- See US Customs’ PGA Pilot/ACE resource page for more information.
* If you do not see an updated CSMS on or before February 1, CPB suggest that you contact Steve Zaccaro at email@example.com for updated instructions. This is a fast-moving pilot and requirements are likely to change, which necessitates continuous updates.
As many in the trade are aware, as of February 28, 2016, US Customs’s legacy ACS system will no longer be available for filing of any electronic entries and associated summaries. Filers may only file in ACE; those who are not prepared to file in ACE must file paper entries and entry summaries.
After February 28, the Los Angeles/Long Beach seaport complex and outlying ports “will give priority to processing all electronic entries and entry summaries. Filers who submit paper entries will face delays in cargo processing, impacting the release of their shipments.” Details are here. LA&LB Ports – Mandatory Use of ACE for ALL Electronic Entry and Entry Summary Filing
Other ports of entry will likely follow suit. Make sure your (or your broker’s) ABI system is fully ACE-compliant!
Per US Customs’ CSMS #16-000019:
ACE Outreach Events
- FDA ACE/ITDS Pilot – January 19, 2016 – 1:00 – 3:30 PM EST
- FDA will provide an update on the status of the FDA ACE/ITDS pilot. Specifically, how to prepare and participate in the pilot; and review in detail, FDA’s Supplemental Guide and data required for Food and Prior Notice. Register here.
- APHIS – Live Animals – January 20, 2016 – 2:00 – 3:00 PM EST
- APHIS Veterinary Services will host a webinar focused on ACE planning and piloting. The Live Animals Pilot offers you the opportunity to be a leader in adapting your business to the new single window environment. By working with APHIS now, you will have the benefit of establishing a strategic, measured, and collaborative approach with APHIS and CBP. Live animals include livestock, avian, semen, embryos, hatching eggs, certain aquaculture species, and certain other live animals. APHIS Veterinary Service Subject Matter Experts will be present to address technical, piloting, and import questions. Register here.
- APHIS Lacey Act Express Couriers (VS) – January 27, 2016 – 2:00 – 3:00 PM EST
- APHIS will host a webinar focused on ACE planning and piloting. The Express Courier Pilot offers you the opportunity to be a leader in adapting your business to the new single window environment. By working with APHIS now, you will have the benefit of establishing a strategic, measured, and collaborative approach with APHIS and CBP. APHIS Subject Matter Experts will be present to address technical, piloting, and import questions. Register here.
- APHIS Lacey Act Animal Products – February 3. 2015 – 2:00 – 3:00 PM EST
- APHIS Veterinary Services will host a webinar focused on ACE planning and piloting. The Animal Product Pilot offers you the opportunity to be a leader in adapting your business to the new single window environment. By working with APHIS now, you will have the benefit of establishing a strategic, measured, and collaborative approach with APHIS and CBP. APHIS Veterinary Service Subject Matter Experts will be present to address technical, piloting, and import questions. Register here.
When a weekly FTZ entry is subject to a PGA release, US Customs originally intended that requisite declarations be made on the weekly estimate (Cargo Release (SE)). However, as many in the trade know, the National Highway Traffic Safety Administration (NHTSA) and the APHIS-Lacey declarations require actual amounts to be declared versus estimates.
Therefore, with the launch of ACE, CBP and these PGAs have determined that these declarations should be made on the Entry Summary (AE) submissions which are transmitted at the end of the weekly withdrawals, and the actual quantities entering the commerce are known.
ABI vendors have been instructed to make this change to their software and CBP intends to have this functionality in place by January 15, 2016.
The FDA is also considering this policy and should make a determination shortly.
For non-weekly FTZ entries, these declarations will continue to be required on the type ‘06’ Cargo Release transmission.
Traditionally, filer have sent the majority of FCC Declarations CBP’s Automated Commercial System (ACS) electronically via ABI. However, with the advent of CBP’s Automated Commercial Environment (ACE), that will no longer be the case. Specifically, beginning July 1, 2016, filers will no longer be required to declare their FCC-regulated imports to the FCC until further notice.
Filers have been confused on what the process will be between February 28, 2016, when ACE filing becomes compulsory, and July 1st. CBP and the FCC have clarified that filers are to continue to send the FCC information, in the traditional ACS format, during this period as part of the Entry Summary (AE) filing.
CBP will route this part of the ACE Entry Summary to the legacy ACS system during this time and such ACE entries will no longer be rejected for containing FCC declarations. For further information, please review the FCC Public Notice found here.