U S Customs and Border Protection Update Automated

U. S. Customs and Border Protection Update: Automated Commercial Environment/ International Trade Data System Ms. Valarie Neuhart Import Specialist April 29, 2004

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 2

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 3

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. 4

Integration of ITDS with ACE Integrated 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 5

Current Data Flow – All Methods ATF Alcohol, Tobacco, Firearms, Explosives Traders EPA Environmental Safety FSIS DEA Food Safety Drug Enforcement FDA Carriers GIPSA Food and Drug Safety Truck, Air, Rail, and Sea Agricultural Standards Passengers Economic Information and Research Importers and Exporters ERS International Air, Land, Sea FAS Foreign Marketing CBP Solid Lines = All Methods of Communication Import Export Passengers Broken Lines = Two Way Electronic Communication Sample List Of Agencies ITA Trade Promotion and Enforcement FWS Fish, Wildlife and Plants NHTSA Truck and Automobile Safety NRC Radioactive Material 6

ACE/ITDS Data Flow EPA ATF Alcohol, Tobacco, Firearms, Explosives Environmental Safety FSIS DEA Drug Enforcement Importers and Exporters Carriers FDA GIPSA Traders Food Safety Food and Drug Safety Agricultural Standards ACE/ITDS ERS Economic Information and Research Truck, Air, Rail, and Sea FAS U. S. Customs and Border Protection Foreign Marketing CBP Import Export Passengers Border Compliance ITA Trade Promotion and Enforcement FWS Fish, Wildlife and Plants NHTSA Truck and Automobile Safety NRC Radioactive Material Sample List Of Agencies 7

ACE/ITDS Benefits More 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 8

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 9

Agencies Targeted for 2004 § 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 § § § 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) 10

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 11

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) 12

DOT Context for ACE/ITDS 13

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 14

e-Release and Truck Manifest As trucks approach border Radio Frequency signal transmitted to ACE CBP Officer at Primary checks ACE screen for results of CBP and PGA analysis CBP Officer decides to: Release Shipment OR Hold and Examine 15

Automated Truck Manifest Provides 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. 16

Trade Act of 2002 e-Manifest Requirements 17

Trade Act of 2002 e-Manifest Implementation Timeframe Transportation Mode Vessel Implementation Rail Voyages Commencing March 4, 2004 or later Beginning in August 2004 (phased in by port through December 2004) 90 -days after Final Rule (FR) notice Truck 90 -days after FR notice Air 18

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Back-up Slides 20

Account Creation (Release 2) WHAT WHO BENEFITS § 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 21

Periodic Payment (Release 3) WHAT WHO § 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 BENEFITS § 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 22

e-Manifest: Trucks (Release 4) WHAT WHO § § § Cargo and enforcement processing for trucks e. Release 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 § BENEFITS § § Provides standard automated manifest at land ports Enhances security in the supply chain Enables inspectors to make faster, better, earlier decisions 23

New Technology WHAT Selectivity and Cargo Systems: Releases S 1, S 2, and S 3 § Flexible selectivity parameters to allow users to define criteria § Consolidated findings repository § Criteria management and reporting capabilities Technology prototypes: Intelligence Information Factory (IIF), Knowledge Base Risk Management (KBRM), TRAP-EZE § Automated support tools for intelligence analysis process § On-line collaboration capability to capture and share knowledge § Initial risk identification and mitigation WHO § Possible means of automatically generating screening criteria All CBP and PGA users who create and define selectivity and criteria § Analysts at the National Targeting Center (NTC) BENEFITS § Supports enforcement/compliance programs § Provides centralized access to Customs Automated Port Profiling System (CAPPS) findings § Select land border ports § Provides framework on which sets of analysis tools can be configured and integrated for specific applications § Improves quality of analysis 24

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 cargomanagement 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 25

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 26