Automated Commercial Environment (ACE): Filings and Penalties

The Automated Commercial Environment (ACE) portal is Customs and Border Protection’s electronic system for processing commercial imports and exports, and it is where importers, exporters, brokers, carriers, and sureties file the data CBP needs to release goods, collect duties, and track shipments crossing U.S. borders. Every commercial shipment passes through ACE in some form, whether as a cargo manifest, an entry summary, or an export declaration. Accounts are free, but the type of account you request, and the filings you can make through it, depend on your role in the supply chain.

Who Needs an ACE Account

CBP maintains more than a dozen ACE sub-account types, including accounts for importers, exporters, customs brokers (called “filers”), carriers, surety companies, foreign trade zone operators, vessel agencies, service providers, and protest filers.¹ Each account type unlocks different portal functions.

Importers file entry documentation and manage duty payments. Federal law requires the importer of record to file the information CBP needs to determine whether merchandise can be released, either personally or through an authorized agent, and electronic filing through ACE satisfies that obligation.² Brokers do this work for importers who prefer professional representation. Exporters use the Automated Export System component of ACE, which the Census Bureau uses to collect Electronic Export Information on outbound shipments from the United States, Puerto Rico, and the U.S. Virgin Islands.³ Carriers across all transport modes transmit advance manifest data. Surety companies manage the bonds guaranteeing payment of duties and taxes.

How to Apply for an Account

CBP does not charge a fee. Applications start on the CBP website, where you complete a web-based form tailored to your account type.⁴ There are separate paths for exporters, importers with an existing identity on file, and other trade parties setting up new accounts.

What You Need Before You Start

Have a valid Employer Identification Number from the IRS ready, or a Social Security Number if you are applying as an individual. Transportation companies need their industry codes: the Standard Carrier Alpha Code for trucking and maritime carriers, or the International Air Transport Association code for airlines. Importers who have not filed with CBP before should expect to complete the equivalent of CBP Form 5106, which registers the Importer of Record number.¹ If your business uses a customs bond, have the bond number and surety code available.

Every company designates a Trade Account Owner, the individual who acts as primary administrator with authority to manage user access. The application collects the business’s full legal name as registered with tax authorities, headquarters address, contact phone numbers, professional email addresses, and codes describing the company’s role in trade. Details must match official government records exactly, or the vetting process stalls. A secondary contact keeps communication flowing when personnel change.

After You Submit

Submission triggers a confirmation email to the Trade Account Owner with a reference number. CBP then runs a background check for outstanding enforcement actions or compliance problems. Review takes anywhere from a few days to a couple of weeks. CBP may follow up for clarification.

Approval brings a second email with a password retrieval link and login instructions. That link expires 21 days after it is sent, so act promptly.⁵ On first login, the Trade Account Owner sets a permanent password and security questions, then can add users who need access to specific data.

Logging In

ACE uses multi-factor authentication on every login. After you enter your username and password, the system sends a one-time security token to the email address on file. The token expires five minutes after it is issued, so enter it quickly or request a new one.⁶ CBP recommends Microsoft Edge or Google Chrome, since some portal features do not work properly in older browsers.

What You Can File Through the Portal

Once the account is active, the portal opens the filing functions that match your account type.

Entry Summaries

Importers and their brokers file entry summaries that tell CBP what is being imported, its value, and the duties owed. The two most common types are Type 01 for formal consumption entries and Type 11 for informal entries on lower-value shipments.⁷ Each filing needs Harmonized Tariff Schedule codes, which determine the applicable duty rate.⁸ Misclassification is one of the most common sources of penalty exposure.

If you find an error after filing, the portal supports Post-Summary Corrections. Despite the name, a PSC is not a simple edit. CBP treats it as a complete replacement of the original entry summary. It will not process until the filer pays any additional duties owed, and it liquidates on its own terms.⁹

Cargo Manifests

Carriers transmit advance cargo data before shipments reach U.S. borders. Deadlines differ by mode:

Ocean: vessel carriers must transmit manifest data at least 24 hours before cargo is loaded at a foreign port.¹⁰
Air: data must reach CBP no later than the aircraft’s departure for the United States.¹¹
Rail: electronic transmission is required at least two hours before cargo reaches the first U.S. port of arrival.¹²
Truck: data must be transmitted at least one hour before the carrier reaches the first port of arrival. Members of the Customs-Trade Partnership Against Terrorism program get a shortened window of 30 minutes.¹³

Importer Security Filing (10+2)

For ocean shipments, the importer or an agent must also file an Importer Security Filing, separate from the carrier’s manifest. Ten data elements are due at least 24 hours before cargo is loaded onto the vessel: the seller, buyer, manufacturer, importer of record number, consignee, country of origin, HTS commodity code, and the rest. Two additional elements, the container stuffing location and the consolidator, must be filed no later than 24 hours before the vessel arrives at a U.S. port.¹⁴

Export Filings

Exporters file Electronic Export Information through the Automated Export System component of ACE. The Census Bureau uses this data to track outbound trade.³

Reports

The Reports tool generates spreadsheets covering past transactions, duties paid, and liquidation statuses. Filter by date, port, or shipment identifier to run internal audits. The portal also delivers administrative messages and notices of action directly.

When to Use EDI Instead

The web portal handles moderate filing volumes, but businesses transmitting large numbers of entries or manifests typically connect through Electronic Data Interchange. EDI is a direct system-to-system link between the filer’s software and CBP’s automated systems.¹⁵

Every EDI participant must pass a testing and qualification period with CBP before transmitting production data. The same applies when the company makes significant programming changes later. CBP offers four connectivity methods: a public internet VPN connection, a Verizon or AT&T MPLS VPN, a private VPN solution, or a value-added network through a service center. Companies interested in EDI start by contacting a CBP Client Representative.

Most brokers and many large importers rely on third-party software. CBP publishes a list of Automated Broker Interface software vendors, though inclusion is not an endorsement.¹⁶ Capabilities vary. Some vendors handle only entry filings while others cover in-bond processing, foreign trade zones, drawback claims, and the ISF.

Penalties for Late or Inaccurate Filings

The penalty structure is steep enough to demand attention, and it splits into penalties for bad entry data and penalties for late or missing manifest and security filings.

Inaccurate Entry Information

Under 19 U.S.C. § 1592, CBP can impose civil penalties when a filer submits materially false or misleading information in connection with a commercial entry. Severity depends on culpability:

Fraud: a penalty up to the full domestic value of the merchandise.
Gross negligence: a penalty up to the lesser of the domestic value or four times the unpaid duties. If the error did not affect revenue, the cap is 40 percent of the dutiable value.
Negligence: a penalty up to the lesser of the domestic value or two times the unpaid duties. If no revenue was affected, the cap is 20 percent of the dutiable value.¹⁷

If you discover a violation and disclose it to CBP before a formal investigation begins, penalties drop sharply. For negligence or gross negligence, prior disclosure limits the penalty to interest on the unpaid duties rather than a percentage of merchandise value. Even for fraud, prior disclosure caps the penalty at 100 percent of unpaid duties (or 10 percent of dutiable value if no revenue impact) rather than the full domestic value.¹⁷

Manifest and Security Filing Violations

Carriers who fail to report their arrival or submit required manifest information face a civil penalty of $5,000 for a first violation and $10,000 for each subsequent violation under 19 U.S.C. § 1436. The conveyance itself can also be seized.¹⁸ Non-vessel operating common carriers who transmit manifest data late or inaccurately face liquidated damages of $5,000 per violation.¹⁹

For the ISF, CBP can assess $5,000 in liquidated damages per violation for submissions that are inaccurate, incomplete, or late.¹⁴ A single ocean shipment can trigger multiple ISF filings, so these compound quickly.

Recordkeeping After You File

Filing electronically does not eliminate the obligation to keep records. The general rule is that you must keep all records related to an import entry for five years from the date of entry. For records tied to a non-entry activity like a drawback claim or bond transaction, the five-year clock starts from the date the activity occurred.²⁰

A few exceptions shorten that timeline. Packing lists need to be kept only 60 days after the release period ends. Records for informal entries filed by a consignee who is not the owner must be kept for two years. Drawback claim records must be kept until three years after the claim is paid.²⁰

“Records” is read broadly. It covers statements, declarations, financial accounting data, electronic transmissions, correspondence, and any computer programs needed to retrieve the information in usable form.

Storing Records Electronically

You can store records electronically instead of on paper, but there are specific compliance requirements. You must notify CBP’s Regulatory Audit office in Charlotte, North Carolina at least 30 days before switching. The system must preserve data integrity and readability, include a standardized retrieval process, maintain effective labeling and indexing, and be tested internally every year. Keep one working copy and one backup in a secure location for the full retention period.²¹

One detail catches people off guard. Even if you store records electronically, you must keep entry records in their original format for 120 days after the release period ends. CBP can demand hard-copy reproductions during an audit, inquiry, or investigation, and the cost of producing them falls on the recordkeeper.

1
U.S. Customs and Border Protection. ACE Portal – Account Types
2
Office of the Law Revision Counsel. 19 USC 1484 – Entry of Merchandise
3
United States Census Bureau. Export Filing AES
4
U.S. Customs and Border Protection. Applying for an ACE Secure Data Portal Account
5
U.S. Customs and Border Protection. ACE Initial Account Access
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U.S. Customs and Border Protection. ACE Portal Modernization – Phase 1
7
U.S. Customs and Border Protection. ACE Entry Summary Instructions
8
U.S. Customs and Border Protection. Harmonized Tariff Schedule – Determining Duty Rates
9
U.S. Customs and Border Protection. Post Summary Corrections
10
U.S. Customs and Border Protection. Cargo Vessel Manifest
11
U.S. Customs and Border Protection. Air Automated Manifest System (AMS) Air Features
12
Federal Register. Required Advance Electronic Presentation of Cargo Information – Compliance Dates for Rail Carriers
13
U.S. Customs and Border Protection. Commercial Truck Manifest
14
U.S. Customs and Border Protection. Import Security Filing (ISF) – When to Submit to CBP
15
U.S. Customs and Border Protection. Transmitting Data to CBP via Electronic Data Interchange (EDI)
16
U.S. Customs and Border Protection. ABI Software Vendors
17
Office of the Law Revision Counsel. 19 USC 1592 – Penalties for Fraud, Gross Negligence, and Negligence
18
Office of the Law Revision Counsel. 19 USC 1436 – Penalties for Violations of Arrival, Reporting, Entry, and Clearance Requirements
19
eCFR. 19 CFR 4.7 – Inward Foreign Manifest
20
eCFR. 19 CFR 163.4 – Record Retention Period
21
eCFR. 19 CFR Part 163 – Recordkeeping