A  February 2014 Executive Order, as well as provisions in TFTEA,  subsequently reinforced this commitment to complete the system before  the end of 2016. February 2018. FDA has integrated its internal systems with ACE and uses ACE data to  review imports under its jurisdiction, targeting FDA-regulated imports that  pose higher public health risks for manual review to determine the  imports’ admissibility, according to FDA officials. However, FWS has not yet  integrated ACE into FWS operations. ACE Users Report Cost Savings and Enforcement Benefits

CBP and partner agency officials and trade community representatives  told us that their use of ACE has reduced costs by increasing the  efficiency of trade processing. CBP and partner agency officials also  reported that the system has strengthened their ability to enforce trade  laws and regulations. According to CBP documents and officials,  the agency plans to expand its metrics for capturing ACE benefits—for  example, to estimate the value of increased efficiencies for partner  agencies and to measure any savings associated with the remaining core  ACE capabilities after they are implemented. For example:
CBP. CBP Has Developed, and Plans to Expand, Metrics to Estimate the Value of Process Efficiencies Gained through ACE

			CBP Has Developed Some Metrics to Value Efficiency Gains for Itself and the Trade Community

CBP has developed metrics to estimate the value of efficiency gains  associated with the use of some of the implemented ACE capabilities for  itself and the trade community. ACE users in CBP, partner  agencies, and the trade community have identified a number of  shortcomings in ACE and have suggested enhancements to address  them. Further, a process for  prioritizing all suggested enhancements has not been established. Federal guidance calls for establishing the  organizational structure necessary to achieve objectives, including  compatible means of operating across agency boundaries. Funding for ACE Development after Fiscal Year 2018 Has Not Been Identified

Although CBP identified funding to complete the implementation of core  ACE capabilities as defined by CBP in fiscal year 2018, officials of CBP  and its partner agencies stated that they have not identified funding for  the continued development of ACE, including most of the enhancements  that have been suggested by CBP, the trade community, or partner  agencies. Approach to Managing ACE after Completion of Core Capabilities Has Not Been Finalized

CBP is working with its partner agencies in the BIEC to reach agreement  on an approach to managing ACE’s continued development after  completing the implementation of core capabilities, but this approach has  not been finalized. Process for prioritizing enhancements. Process for sharing costs. Until CBP, in collaboration with partner agencies,  finalizes its management approach to ACE, including processes for  prioritizing, and sharing costs for, critical enhancements, U.S. agencies  and the trade community will not realize the system’s full potential  benefits. Conclusions

The need for an international trade data system to enhance U.S.  agencies’ efficiency and effectiveness in processing cargo and enforcing  U.S. trade laws has long been clear. Recommendation for Executive Action

We are making the following recommendation to DHS:  The Secretary of Homeland Security should ensure that the  Commissioner of CBP, in collaboration with partner agencies, finalizes an  interagency approach to the post-core management of ACE that includes  (1) processes for prioritizing enhancements to ACE and for sharing ACE  operations and maintenance and development costs, including the costs  of suggested enhancements among partner agencies that may benefit,  and (2) time frames for implementing such processes. Appendix I: Objectives, Scope, and Methodology

In this report, we examine (1) the status of U.S. Customs and Border  Protection’s (CBP) efforts to implement core Automated Commercial  Environment (ACE) capabilities since 2013, (2) CBP partner agencies’  access to ACE and use of the system for import processing, (3) available  information about any cost savings and trade enforcement benefits that  have resulted from using ACE, and (4) the approach that will be used to  manage ACE after core capabilities have been completed. We also  reviewed prior GAO reports on ACE acquisition.
Why GAO Did This Study

CBP began work on ACE in 1994 to update the agency's existing electronic trade processing system. In 2006, Congress broadened this effort by mandating creation of a “single portal” International Trade Data System to, among other things, efficiently regulate the flow of commerce and more effectively enforce laws and regulations relating to international trade. Performance problems halted implementation of ACE from 2010 to 2013. In 2014, the President set a deadline of December 31, 2016, for completing the system.
The Trade Facilitation and Trade Enforcement Act of 2015 included a provision for GAO to report on issues related to ACE implementation. In this report, GAO examines (1) CBP efforts to complete core ACE capabilities since 2013; (2) agencies' access to ACE and use of the system to process imports; (3) any cost savings and trade enforcement benefits from using ACE; and (4) the approach that will be used to manage ACE after core capabilities are completed. GAO reviewed information from 22 agencies as well as importers, exporters, and brokers and interviewed agency and trade community representatives.

What GAO Found

Since renewing efforts to implement the Automated Commercial Environment (ACE) in 2013, U.S. Customs and Border Protection (CBP) has deployed a number of key ACE activities, processes, and functions that it terms core capabilities. After several delays, CBP reported that it had finished implementing these capabilities—other than a capability for revenue collections—in February 2018. CBP expects to decide how to proceed with collections by the end of March 2018, according to agency officials.
The 22 agencies CBP identified as requiring documentation to clear or license cargo are all authorized to access ACE, although GAO found considerable variation in their use of the system for import processing. For example, the Food and Drug Administration has integrated its systems with ACE and uses ACE data to review imports under its jurisdiction and target public health risks. In contrast, the Fish and Wildlife Service has not yet integrated ACE into its operations.
ACE users at CBP and partner agencies and in the trade community told GAO that using ACE has reduced costs by making trade processing more efficient and has strengthened enforcement of trade laws and regulations. CBP has developed metrics for itself and the trade community and estimated savings that could result from the increased efficiency of some processes in ACE. CBP also reported efforts to expand its metrics to capture more ACE benefits—for example, to estimate the value of increased efficiencies for partner agencies.
CBP has not yet established an approach for the management of ACE after February 2018. The agency plans to enhance ACE to address shortcomings ACE users have identified—such as difficulty in transmitting messages and required information —but has not established a process for prioritizing all suggested enhancements. CBP also has not identified funding for continued ACE development, including enhancements, after fiscal year 2018. CBP is leading an interagency effort to develop an ACE management approach that includes processes for prioritizing enhancements and sharing costs, but this approach has not been finalized. Federal guidance calls for establishing the organizational structure necessary to operate effectively and for examining efforts as needed to adopt coordinated approaches. Until processes for prioritizing ACE enhancements and sharing costs are finalized, agencies and the trade community will not realize the system's full potential benefits.

What GAO Recommends

The Secretary of Homeland Security should ensure that the Commissioner of CBP, in collaboration with partner agencies, finalizes an interagency approach to managing ACE that includes processes for prioritizing enhancements and sharing system costs. CBP concurred with GAO's recommendation.