For about a year now, you’ve seen us write post…after post…and after post on the delayed ACE deadlines. However, as of last month, ACE is now the sole CBP-authorized EDI system for processing electronic entry and entry summary filings of certain entry types.
While initial feedback and reporting on how the full digital transition process is still rolling in, there are some crucial things to still remember about automated filing. One being that the Automated Export System (AES) has not gone away just because ACE is in full-effect; it has now become part of the ACE filing process. Why? Where ACE is a system for digital import/export reporting, and ACE is the system within ACE that U.S. exporters use to electronically declare international exports. Here are some quick facts about AES:
- Why is AES filing important? AES Filing is required for certain US Export shipments with penalties for non-compliance up to $10,000 per violation.
- How can AES filing be a challenge? Some carriers provide AES filing as a service but this can become quite expensive. What’s more, CBP requires a very specific technology for direct connections from each system connecting to CBP. As such, some software providers will handle data transmission, but require the customer to establish and certify the connection with CBP, which can easily take 6-9 months to process.
- What are the AES filing options?
- AESDirect web portal: The user determines if a shipment requires AES filing, logs into the CBP portal, hand keys the shipment info and submits. Then, the user receives an email with an ITN number 10-15 minutes later. Lastly, the user hand keys the ITN number from email into shipping records.
- AES Certified service center: The user determines if the shipment requires AES filing, logs into the CPB portal, hand keys the shipment info and submits. Then, the user is presented with an ITN number within 30 seconds. Finally, the user hand keys the ITN number into shipping records.
- AES Certified software vendor: The user leverages a shipping solution that includes electronic AES filing and the system determines if the shipment requires AES filing. When the shipment is processed, AES data is transmitted automatically. Within 30 seconds, the shipping system is updated with the ITN number.
Now that we’ve established what AES is and how it fits into the larger ACE process, it is important to understand a little more about the third AES filing option outlined above. Parcel automation is the process of selecting an appropriate carrier and service and then rating, labeling and manifesting a shipment with as little human interaction as possible. With ACE already requiring logistics managers to digitally file, why bother with hand-keying information, emailing and following up?
An automated AES system will help make the entire customs filing process digital and data-driven, freeing businesses up to focus on innovation, customer service and partnerships, not administrative tasks. The Kewill MOVE™ platform for multimodal transportation and logistics management offers this solution, enabling customers to gain a holistic view of the logistics network with end-to-end visibility across the most critical supply chain execution processes.
Interested in learning more? Check out our AES webcast on-demand, here: Achieving AES Compliance Using Parcel Automation Technology