U.S. Customs and Border Protection Update: Automated Commercial Environment/International Trade Data SystemMs. Valarie NeuhartImport Specialist

April 29, 2004

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Agenda

1. U.S. Customs and Border Protection (CBP) Modernization

2. Data Flows

3. Automated Commercial Environment (ACE) and

International Trade Data Systems (ITDS) Benefits

4. Benefits to Department of Transportation (DOT) Agencies

5. e-Release and Truck Manifest

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U.S Customs and Border Protection Modernization

Modernization is a 15-year initiative to modernize and integrate CBP to support the core business processes

ACE is the first step

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ACE/ITDS Vision

To implement a secure, integrated, government-wide system for the electronic collection, use, and dissemination of the international trade and transportation data essential to the missions of federal agencies.

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Integration of ITDS with ACEIntegrated government-wide functionality for the electronic

collection, use, and dissemination of international trade data

Develop and integrate Participating Government Agencies (PGAs) functionality in ACE

Supports mission requirements for border processing of commercial shipments, conveyances, individuals, and access to trade data with interface for government agencies

Improve compliance and enforcement of government trade requirements (e.g., security, public health, safety, export control)

Reduce the cost and burden of processing trade transactions for both the trade community and the government

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Current Data Flow – All MethodsAlcohol,

Tobacco, Firearms,

Explosives

ATFEnvironmental

Safety

EPA

FSIS

GIPSA

ITA

FDA

ERS

FAS

NRC

FWS

Drug Enforcement

DEAFood

Safety

Food and Drug Safety

Trade Promotion

and Enforcement

Fish, Wildlife and

Plants

Agricultural Standards

Economic Information

and Research

Foreign Marketing

Radioactive Material

NHTSATruck and Automobile

Safety

Traders

Carriers

Passengers

Import Export

Passengers

CBPSolid Lines = All Methods of CommunicationSolid Lines = All Methods of Communication

Broken Lines = Two Way Electronic CommunicationBroken Lines = Two Way Electronic Communication

Sample ListOf Agencies

Importers and Exporters

Truck, Air, Rail, and Sea

International Air, Land, Sea

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Alcohol, Tobacco, Firearms,

Explosives

ATFEnvironmental

Safety

EPA

FSIS

GIPSA

ITA

FDA

ERS

FAS

NRC

FWS

Drug Enforcement

DEAFood

Safety

Food and Drug Safety

Trade Promotion

and Enforcement

Fish, Wildlife and

Plants

Agricultural Standards

Economic Information

and Research

Foreign Marketing

Radioactive Material

NHTSATruck and Automobile

Safety

Importers and Exporters

Traders

Truck, Air, Rail, and Sea

Carriers

Import Export

Passengers

CBP

ACE/ITDSACE/ITDS

ACE/ITDS Data Flow

U. S. Customs and Border Protection

Border Compliance

Sample ListOf Agencies

ACE/ITDSACE/ITDS

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ACE/ITDS BenefitsMore Effective Enforcement and Analysis

Availability of pre-arrival information Cargo tracking Access to more accurate and timely transaction information Enable comprehensive risk management Promote multi-agency collaboration of enforcement initiatives

Efficiency Promote information sharing among federal, state, and local

government agencies Accelerate border clearance Reduce costs Eliminate paper systems

Trade Facilitation Provide single-window transaction filing for the trade community Harmonize government data requirements Improved visibility of conveyance and cargo status

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Initial ACE/ITDS Participating Government Agencies Animal and Plant Health Inspection Service

Federal Communications Commission

Food and Drug Administration (FDA)

Federal Motor Carrier Safety Administration (FMCSA)

Maritime Administration (MARAD)

U.S. Army Corps of Engineers

U.S. Census Bureau

U.S. International Trade Commission

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Agencies Targeted for 2004 Import Administration Foreign Trade Zone Board U.S. Transportation Command Agricultural Marketing Service U.S. Nuclear Regulatory

Commission (NRC) Federal Aviation Administration

(FAA) Environmental Protection Agency

(EPA) Bureau of Transportation

Statistics (BTS)

U.S. Fish and Wildlife Service (FWS)

Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)

National Highway Traffic Safety Administration (NHTSA)

Food Safety Inspection Service (FSIS)

Bureau of Labor Statistics Federal Maritime Commission Trade Development

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ACE Benefits Specific to Transportation Agencies

Access to electronic manifest information for all modes of transportation

Collection of paper forms and data entry replaced by electronic data submittals and data dissemination

Electronic verification of transportation related licenses, permits, and certificates

Advanced information on carriers, conveyances, and crew for risk and regulatory compliance assessments

More timely and complete information for statistical transportation analyses

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Additional DOT Specific Benefits

Improved Truck Safety at the Nation’s Land Borders (FMCSA)

Better Control Over Imported Autos & Automobile Components (NHTSA)

More Detailed Knowledge About the International Transport of Hazardous Materials by Air (FAA)

Better Compliance With the Nation’s Cargo Preference Laws (MARAD)

Better Focused, More Timely Transportation Data to Improve Federal Policy and Public Understanding (BTS & MARAD)

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DOT Context for ACE/ITDS

ACE/ITDS

FMCSA

BTS

RSPA FRA

MARAD

NHTSA FAA

SLSDC

FTA FHWA

Multi-modaldata

Multi-modal data

Truck manifestdata

Marine modedata

Screeningresults

Screeningresults

Auto importdata

SLSDCmarine mode

data

BTS marine modedata

Air mode HazMatdata

OST

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Initial Seven Land Border Sites

U.S./Canada ports of entry Blaine, Washington Port Huron, Michigan Detroit, Michigan Buffalo, New York Champlain, New York

U.S./Mexico ports of entry Otay Mesa, California Laredo, Texas

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CBP Officerdecides

to:

As trucks approach border

Radio Frequency signal transmitted to ACE

CBP Officer at Primary checks ACE screen for results of

CBP and PGA analysis

Release Shipment

ORHold

and

Examine

e-Release and Truck Manifest

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Automated Truck ManifestProvides means for submitting:

Trip data Transponder #, port of entry, date/time, carrier, and

vehicle Crew data (ID # for drivers and crew) Conveyance data (ID #)

Shipment data (bill of lading, containers, commodities, quantity, HAZMAT info, etc.)

Allows for carrier notifications for arrival, release, holds, PGA actions, etc.

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Trade Act of 2002 e-Manifest Requirements

Transportation Mode Inbound – Manifest Transmission

Received by CBP Vessel 24 hours (before lading)

Air 4 hours Wheels up from NAFTA and Central and South America above the equator

Rail 2 hours

Truck 1 hour non-FAST 30 minutes FAST

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Trade Act of 2002 e-Manifest Implementation Timeframe

Transportation Mode Implementation

Vessel Voyages Commencing March 4, 2004 or later

Air Beginning in August 2004 (phas ed in by port through December 2004)

Rail 90-days after Final Rule (FR) notice

Truck 90-days after FR notice

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Back-up Slides

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Account Creation (Release 2)

WHO

BENEFITS

WHAT ACE Secure Data Portal

CBP: Account Managers for initial accounts Trade: Initial 41 account participants

Review CBP entry data in near real time Manage issues and resolve problems more effectively Enable uniform customer support Support Informed compliance Provide easy access to summary reports, Harmonized Tariff Schedule (HTS), and compliance rate data National information

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Periodic Payment (Release 3)

WHO

BENEFITS

WHAT Initial account revenue periodic statements and payments (monthly)

Automated Clearinghouse (ACH) credit and ACH debit Additional account functionality CBP: Entry specialists, National Finance Center Trade: ACE account participants

Enables importer accounts to designate brokers to file on their behalf

Expands account management to enable brokers to view entry summary historical data

Expands account profile to include carriers

Moves from transaction-based to account-based payments Enables CBP and trade community to track open items Requires fewer payment transactions and decreases daily

workload Quick access to important updates and revenue reports

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e-Manifest: Trucks (Release 4)

WHO

BENEFITS

WHAT Cargo and enforcement processing for trucks eRelease and automated truck manifest, including in-

bond Consolidated interface for inspectors EDI and ACE Secure Data Portal Transponder & proximity card

CBP: Land border inspectors Trade: ACE account participants

Expands to truck carriers and their authorized agents initially at seven selected land border ports

Provides standard automated manifest at land ports Enhances security in the supply chain Enables inspectors to make faster, better, earlier

decisions

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New TechnologyWHAT

WHO

BENEFITS

Selectivity and Cargo Systems: Releases S1, S2, and S3

Technology prototypes: Intelligence Information Factory (IIF), Knowledge Base Risk Management (KBRM), TRAP-EZE

All CBP and PGA users who create and define selectivity and criteria

Supports enforcement/compliance programs

Provides centralized access to Customs Automated Port Profiling System (CAPPS) findings

Analysts at the National Targeting Center (NTC)

Select land border ports

Provides framework on which sets of analysis tools can be configured and integrated for specific applications

Improves quality of analysis

Flexible selectivity parameters to allow users to define criteria

Consolidated findings repository

Criteria management and reporting capabilities

Initial risk identification and mitigation

Automated support tools for intelligence analysis process

On-line collaboration capability to capture and share knowledge

Possible means of automatically generating screening criteria

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Global Business Blueprint (GBB)Define the scope for future ACE capabilities beyond e-Manifest:

Trucks (Release 4)

Identify potential organizational impacts (e.g., responsibilities, policy changes, and performance measures)

Identify opportunities for improvement across cargo-management business processes

Determine the best use of software solutions to develop an integrated ACE solution that builds upon initial ACE capabilities

Develop or refine existing program strategies, including project schedule, cost, and rollout approach

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Future Capabilities of ACE Automated and consistent manifests – Includes air, sea,

trucks, and rail

Ongoing expansion of Accounts – Includes exporters, carriers, brokers, and importers

Import Activity Summary Statement (IASS) – Includes reconfigured entries, which will be an aggregation of merchandise by release. This will provide the ability to aggregate shipments and make better use of analytical tools.

Security and commercial account capabilities – Enhanced and expanded to offer additional functionality for the end user

Release messaging capabilities – Includes interface to legacy systems for the air, sea, and rail environments