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Drawback filers could face difficulties submitting their claims on and after Jan. 14, when drawback functionality is deployed to the Automated Commercial Environment. However, STTAS has mitigated the risk of encountering such difficulties by successfully transmitting drawback claims in the ACE test environment and thus anticipates a smooth transition for its clients.

Drawback is the refund of certain duties, taxes, and fees collected on imports upon the exportation or destruction of goods under U.S. Customs and Border Protection supervision. As part of CBP’s ongoing transition to ACE, transactions supporting drawback must be filed in and processed through ACE as of Jan. 14, at which time drawback submissions to the Automated Commercial System will no longer be supported. If filers are unable to transmit in ACE they have the option to file manually, but such claims are limited to 25 elements per claim.

However, many existing drawback claim filers could have difficulty handling this transition, said Dawn Olesky, vice president, drawback and conflict minerals operations, for STTAS and a member of the Trade Support Network working group that has been assisting CBP with the implementation of drawback in ACE. In particular, it does not appear that many filers (including customs brokers) have been actively testing the submission of drawback claims in ACE. This could increase the chances of these filers experiencing an error when filing on or after Jan. 14 and thus create a problem for affected claimants.

On the other hand, STTAS has been actively testing drawback claim filing in ACE for several months as well as working closely with CBP to address problems revealed by that testing. Olesky said this experience will be a significant benefit to STTAS clients seeking an efficient resolution of their drawback claims after the ACE transition.

For more information on drawback filing in ACE, please contact Dawn Olesky via email or by phone at (248) 957-5142. For general inquiries about ACE, please contact Tom Gould via email or by phone at (213) 453-0897.