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UPS® Customs Brokerage Webinar 29 March 2017
Benefits and Challenges of ACE Post Summary Transactions
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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Benefits and Challenges of ACE Post Summary Transactions
Agenda
UPS trade update
ACE timing
Post summary transactions overview
Key transactions and their implications
UPS Tradenomics
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and
other public sources and reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and
completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. This presentation does not constitute legal advice.
$337.3B US
exports to
Canada (2015)
$267.2B US
exports to
Mexico (2015)
UPS Trade Update
NAFTA trade update
• Mexico – proposing an accelerated timeline for renegotiation
• Mid-year start
• Potential December finish
• US – renegotiations will focus on the “anomalies”
• E.g. Rules of origin
• Two bi-laterals vs one tri-lateral not determined
• Goal is to increase total trade while reducing the trade deficit
Source: Bloomberg/Bureau of National Affairs International Trade Reporter, March 16,2017
Source: USTR
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Timeline overview
1. Planned ACE transition away from ACS (for primary transactions)
2. Actual ACE transition away from ACS
3. Planned ACE release of post summary transactions
4. Rescheduled release of ACE post summary transactions
5. Actual rollout currently pending
Mar ’16
Oct ’16
Jan 14th
Oct ’15
?
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Post summary transactions overview
What they are
• Liquidation
• Post summary corrections
• Protests
• Reconciliation
• Duty drawback
What to review?
Impact of ACE
General implications
Why consider?
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Automation and digitization of required data elements
Post summary transactions
Benefits
• Streamlined process
• Predictability
• Speed
• Visibility
Challenges
• Set up and adapt to new process
• CBP “targeting”
• CBP data retention, monitoring and data mining
Source: cbp.gov
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Liquidation
• Impact of ACE
• Weekly processing (formally every two weeks)
• New Electronic Bulletin Board
– Provides public notice
• 365 day deemed liquidation
Implications:
• Greater visibility from a “public notice” perspective
Definition
• CBP’s process to review an entry and finalize their position on duties
Source: cbp.gov
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Post Summary Corrections
• Under ACE
• An automated process both for submitting and receiving PSC responses
• PSC – did you know?
• CBP will manage the process via targeting
• CBP will retain data for monitoring and data mining purposes
Implications:
• Diligence on the part of the importer to provide consistent and accurate data
Definition
• Electronic corrections via ACE on entry summary data presented to and
accepted by CBP
Source: cbp.gov
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Protests
• Impact of ACE
• Conversion to a semi-automated process
– Upload via the ACE Secure Data Portal
– Partial integration with ACE (paper submissions still possible)
– Some back end processes to remain manual
Implications:
• Trader may want to weigh the option of a protest, which still has manual
components vs utilizing a post summary correction
Definition
• The legal vehicle for importers and interested parties to administratively contest
CBP decisions related to imported merchandise
Source: cbp.gov
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Reconciliation
• Impact of ACE
• Reconciliation is no longer limited to pre-approved companies
– Participation by a company on an as needed basis
• Did you know?
• Only mechanism available to reconcile adjustments to declared (dutiable) value
Implications:
• Companies with only occasional need for reconciliation can leverage its
benefits
Definition
• Allows an importer, using reasonable care, to make entry where not all of the
necessary elements to calculate duty and provide entry are final
Source: cbp.gov
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and
other public sources and reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and
completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. This presentation does not constitute legal advice.
More than $2
billion in
unprocessed
duty drawback
claims each year
Duty drawback
• Impact of ACE
• Consolidation to one entry type (Type 47)
• Filers to provide the applicable provision (from form 7551)
• Impact of Trade Facilitation and Trade Enforcement Act of 2015
• Applying drawback at the 8 digit HTS code level
• “Commercially interchangeable” requirement being dropped
• Time window to process claim expanded from three to five years.
Source: cbp.gov
Implications:
• More flexibility to recoup duties and other certain taxes on re-exported and
destroyed goods
Definition
• The refund of certain duties, internal revenue taxes and certain fees collected
upon the importation of goods, upon their exportation or destruction
Source: globalcustoms.net
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
• Post summary activity – being “Proactively
Reactive”
• Attempting to avoid all post summary activities could
be cost prohibitive
• Managing the post entry process with ACE
• What can you get out of the ACE data versus broker
data
• What would you like to do with it?
Post-
summary
activities
Entry/
entry
summary
Cost associated with moving transactions to entry summary
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
• Drawback changes
• Moving from 10 digits to 8 digits
• Process possibly more challenging
• Potentially better payoff
• Reconciliation
• Ensure accuracy
• Drive for change upstream
Inventory at
8 digit level
Inventory at 10
digit level
Inventory Alignment with Drawback
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Questions and answers
UPS Trade Management Services – when you join forces with an expert
Consulting services Managed services
Compliance consulting Trade compliance process management
Trade consulting Broker/forwarder management
Tariff engineering FTA (free trade agreement) management
Security initiatives consulting Post-entry management
FTA feasibility evaluations Data management
Classification management
Import/export license management
Denied-party screening management
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided. This presentation does not constitute legal advice.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Benefits and Challenges of ACE Post Summary Transactions
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• Please request on checkout a copy of our presentation and our exclusive article on the Benefits and
Challenges of ACE Post Summary Transactions
• Upcoming webinar:
• The impact and implications, no matter where you are, of non-US free trade agreements (May 9, 2017)
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