Trade Support Network Calls for CBP Grace Period After Oct. 1 ACE Deadline for Drawback, Reconciliation

CBP should give the trade community a grace period of 60 days to file in the legacy Automated Commercial System after it deploys drawback and reconciliation in ACE on Oct. 1, the Trade Support Network leadership council said in a letter to the agency dated Aug. 26. Current plans to deactivate ACS for drawback and reconciliation at the same time CBP launches drawback and reconciliation in ACE do not leave enough time for testing and training, and the agency still hasn’t issued the required policies and regulations, it said.

If CBP moves forward as planned, companies could take a hit to the pocketbook in the form of delayed refunds and penalties for missed deadlines, the letter said. Drawback filers faced with statutory deadlines may have to file on paper if they’re unable to file electronically, causing not only expense to the trade community but also to CBP officers that have to manually input paper claims. Many reconciliation filers won’t be ready by Oct. 1 either, and could face liquidated damages for missing the deadline to “close out” flagged entries within 21 months. Both situations are compounded by the decision to set the mandatory use date at the end of some companies’ fiscal year, when many file drawback claims or reconciliations based on newly available information.

Despite the approaching deadline, software testing is only just beginning, with CBP only recently deploying drawback and certification in the ACE “certification” testing environment. Business rules and policies are “still under development” by CBP, and “no regulations have been issued or revised," the TSN leadership council said. “We also understand that the training of CBP personnel is not expected to take place until a week or two before the mandatory date," it said.

CBP should still implement drawback and reconciliation in the “live” ACE production environment on Oct. 1, “allowing companies that are ready to file despite the short testing period to begin testing the system in production,” the TSN leadership council said. However, the agency should “allow at least 60 days of testing in production before any mandatory date and the shutting down of ACS filings,” it said. Any business rules, policies and regulatory changes should be in place at least 60 days before the deadline, and CBP should also have its personnel trained by that time, the letter said. The TSN leadership council requested that CBP respond to its letter by Sept. 1. CBP didn’t comment.

Email ITTNews@warren-news.com for a copy of the letter.