Customs Brokers cautions US Customs on ACE
ACS - 'Automated Commercial System' is used by CBP (US Customs and Border Protection) to track, control, and process all goods imported into the United States.
A key component is the Automated Broker Interface (ABI), which allows qualified participants to electronically file required import data with Customs. CBP is currently working to transition cargo processing to the Automated Commercial Environment (ACE). ACE is being developed as the primary, modernized system through which the U.S. government will track, control and process all imported and exported goods.
The National Customs Brokers and Forwarders Association of America - NCBFAA, has urged CBP to exercise caution as it approaches February 28, 2016, when it plans to replace ACS with ACE.
The rollout of new technology is always fraught with uncertainty but when international commerce is concerned extra steps must be taken to minimize that uncertainty. The NCBFAA pointed to CBP's recently released functionality allowing air carriers to file their import manifests with CBP in ACE.
“It did not work properly and created havoc with air shipments, resulting in an inability to move shipments, lost business for importers, and significant additional costs for everyone in the supply chain,” the NCBFAA said.
It was reminded of the catastrophe to trade occasioned by Australia's launch of its own new system in 2005 that was driven by a similar approach.
Our GSTN should consider this while they go out for their ambitious plan to link GST components.