1June 5, 2002 eCP Organization

ACE Deployment Panel

Trade Support Network June 5, 2002

Rod MacDonald, U.S. Customs Service

2June 5, 2002 eCP Organization

Agenda

• Review the overall deployment of ACE• Provide specific detail on Increment 1

– Release 1: Account Portal Timeline– Release 2: ACE release for trucks and

periodic payment• Provide the current Plan for Increments 2

through 4

3June 5, 2002 eCP Organization

Today’s goal

Provide the TSN members with an understanding of:

• The current status of the ACE project• The trade’s role in the design process• The planned ACE deployment

4June 5, 2002 eCP Organization

ACE Deployment Overview

Trade Support Network June 5, 2002

Sam Banks, eCP

5June 5, 2002 eCP Organization

Modernization Act Enables Transformation

- Authority to ChangeAuthority to Change- Permitted to IntegratePermitted to Integrate- Quid pro Quo with Quid pro Quo with

TradeTrade- Improve AutomationImprove Automation

Change AgentsChange AgentsChange AgentsChange Agents

ACEACE

Enabler AgentEnabler AgentEnabler AgentEnabler Agent

- Entry by Entry

- Port Specific

- Transaction Oriented / No Aggregated Information

- Stove-Piped Systems

- Delayed Analysis

- No Integrated Law Enforcement

- No Integrated PGA Information

- Data Focus

- Paper Intensive

- Information at Time of Arrival or After

- Experts at Each Port

- Difficult, Cumbersome and Error Prone

- Entry by Entry

- Port Specific

- Transaction Oriented / No Aggregated Information

- Stove-Piped Systems

- Delayed Analysis

- No Integrated Law Enforcement

- No Integrated PGA Information

- Data Focus

- Paper Intensive

- Information at Time of Arrival or After

- Experts at Each Port

- Difficult, Cumbersome and Error Prone

Trade Growth

Trade Growth

Threat Growth

Threat Growth

- Account Based Processing

- National Accounts

- Account Aggregation

- Customs-Wide Shared Information

- Timely Analysis

- Infrastructure for Integrated Information, Trade, Enforcement and Organization Change

- Integration with PGAs

- Intelligence Focus

- Improved Operational Effectiveness

- Pre-Arrival Information

- Leverage Distributed Expertise

- “Point and Click”

- Account Based Processing

- National Accounts

- Account Aggregation

- Customs-Wide Shared Information

- Timely Analysis

- Infrastructure for Integrated Information, Trade, Enforcement and Organization Change

- Integration with PGAs

- Intelligence Focus

- Improved Operational Effectiveness

- Pre-Arrival Information

- Leverage Distributed Expertise

- “Point and Click”

19931993 19991999 20002000 20012001 20022002 2003+2003+19891989

ModernizationModernization ActAct

ModernizationModernization ActAct

TransformationTransformation

6June 5, 2002 eCP Organization

Guidelines for Sequencing

Sequence of ACE functionality is for planning purposes only– Priorities and funding will impact the sequence

Major business processes may be spread across two or more Releases– Transparent to Trade

ACS and other legacy systems will be subsumed into ACE

ACE capabilities will be initially tested on limited sets of companies at limited sites– Selection criteria will be provided by Customs

through published Federal Register notices

7June 5, 2002 eCP Organization

Factors that Impact Sequencing

Precedence– The ACE Infrastructure must be in place before ACE

functionality can be provided– Dependent functions must follow precedent functions – Example: Periodic payments depend on account structure

Customs / Trade Prioritization– Example: Homeland Security implications

Expenditure Projections– Balance functionality with expected funding profile

Resource Balancing– ACE schedule requires concurrent development activities

8June 5, 2002 eCP Organization

Release 1 – 1.1

Release 1 – 4.1

Release 2 – 1.2

Release 1 – 2.1

Increment 1

8/01 – 10/04*

• Full Conveyance Tracking• Full Cargo Tracking • Full Account Revenue

Functions• Full Risk Management

Release 2 – 2.2

Increment 2

2/02 – 1/05

Increment 3

11/02 – 8/05

Increment 4

8/03 – 9/05

• Consolidated Interface for Inspectors• Automated Truck Manifest• e-Release for Trucks• Enhanced Account Management• Initial Account Revenue• Risk Management: Record inspection

findings and perform analysis

• Accounts for all Trade types (except Exporters) • Enhanced Account Management: Hierarchies• Enhanced Account Revenue• Bond Management: eBond & Bond Query• Remaining Truck Release Processes• Initiate IPR Database• Enhanced Risk Mgmt: Targeting & Selectivity DB,

and Lab findings

• Integrated Manifest for all modes of Transportation• e-Release (and Standard Release) for all modes • Integrated process for Import Transactions • Initial Cargo Tracking (In-Bond, FTZ & Warehouse) • Initial Conveyance Tracking• License, Permit, Certification Database• Enhanced Account Revenue• Enhanced Risk Mgmt: Initial Compliance Assessment

• Automated Entry Summary (including Importer Activity Summary Statement, and Reconciliation)

• Automated Liquidation• Automated Protest

Management

• Enhanced Account Revenue

• Enhanced Risk Mgmt: Electronic Team Review Findings

• Trade Statistics & Reports

• Account Management: Exporters• Full Export Processing• Multi-modal Manifest• Automated Mail Release • Automated Drawback

Release 1 – 3.1

• Automated Quota & Visa Mgmt• Automated AD/CVD• Bond Sufficiency• Enhanced Customs Reference Information• Full IPR Capability

Release 2 – 3.2

Summary of ACE Increments and Releases

KeyRequirements Complete; TO4 Under Contract

Requirements Complete; Subject to Negotiation

Requirements Under Development

Baseline Program Plan

• ACE Infrastructure • Secure Web Portal• Account-based access for

USCS & 40 Importers• Initial Account Database• ACE Reference Files (HTS)

Source: Increment Allocation Matrix V.2.2. April 18, 2002; *Task Order 4 Contract

9June 5, 2002 eCP Organization

ACE Development Timeline

10June 5, 2002 eCP Organization

Increment 1, Release 1 – 1.1

• ACE Infrastructure • Secure Web Portal• Account-based access for

USCS & 40 Importers• Initial Account Database• ACE Reference Files (HTS)

Oct 2002 – May 2003 DeploymentIncrement 1, Release 1

KEY BENEFITSThe IT Infrastructure and Web Portal capabilities that are delivered in October, provide the foundation upon which the rest of ACE as well as other modernization systems will be built.

In February, ACE will offer the 40 import accounts and their Account Managers a comprehensive view of account and financial transaction data. This allows the Accounts and select trading partners to manage issues and resolve problems more effectively

KEY BENEFITSThe IT Infrastructure and Web Portal capabilities that are delivered in October, provide the foundation upon which the rest of ACE as well as other modernization systems will be built.

In February, ACE will offer the 40 import accounts and their Account Managers a comprehensive view of account and financial transaction data. This allows the Accounts and select trading partners to manage issues and resolve problems more effectively

KEY IMPACTSThe first forty selected accounts will be established.

OIT will have access to the October release for Pilot Test.Customs Account Managers and their counterparts in the trade will have initial Account functionality in February.

A subset of total businessrequirements will be enabled, allowing the Trade reports and queries of account financial and transaction data.

KEY IMPACTSThe first forty selected accounts will be established.

OIT will have access to the October release for Pilot Test.Customs Account Managers and their counterparts in the trade will have initial Account functionality in February.

A subset of total businessrequirements will be enabled, allowing the Trade reports and queries of account financial and transaction data.

October 2002 – ACE Portal Framework System Infrastructure Ready for Testing

February 2003 – Initial Account Management Capabilities

October 2002 – ACE Portal Framework System Infrastructure Ready for Testing

February 2003 – Initial Account Management Capabilities

HIGHLIGHTS

11June 5, 2002 eCP Organization

Aug 2003 – Oct 2004 DeploymentIncrement 1, Release 2

KEY BENEFITSImproves processing at land border crossing through e-Release for Trucksfor Customs approved accounts. In addition, standard release for Trucks and other existing releasemechanisms will be available through a single sign on interface.

Pre-filing by the Trade and pre-arrival analysis by Customs will enable Customs to move shipments more quickly.

Periodic payments may result in fewer check processing transactions for Customs and the Trade.

KEY BENEFITSImproves processing at land border crossing through e-Release for Trucksfor Customs approved accounts. In addition, standard release for Trucks and other existing releasemechanisms will be available through a single sign on interface.

Pre-filing by the Trade and pre-arrival analysis by Customs will enable Customs to move shipments more quickly.

Periodic payments may result in fewer check processing transactions for Customs and the Trade.

KEY IMPACTSConsolidated interface for Inspectors, provides a single signon to 7 different inspector systems.

Pre-arrival processing of the automated truck manifest and entry allows Customs to make more informed decisions at thetime of arrival.

Capabilities will be expanded to 1100 additional Importer accounts, and include additional account management functionality such as automated, periodic statements and payments.

KEY IMPACTSConsolidated interface for Inspectors, provides a single signon to 7 different inspector systems.

Pre-arrival processing of the automated truck manifest and entry allows Customs to make more informed decisions at thetime of arrival.

Capabilities will be expanded to 1100 additional Importer accounts, and include additional account management functionality such as automated, periodic statements and payments.

August 2003 – Enhanced Account Management Functions Periodic Statement & Payment Processing

December 2003 – Improved Processing for Land Border Crossing

August 2003 – Enhanced Account Management Functions Periodic Statement & Payment Processing

December 2003 – Improved Processing for Land Border Crossing

Increment 1, Release 2 – 1.2• Consolidated Interface for Inspectors• Automated Truck Manifest• e-Release for Trucks• Enhanced Account Management• Initial Account Revenue• Risk Management: Record inspection

findings and perform analysis

HIGHLIGHTS

12June 5, 2002 eCP Organization

Nov 2003 – Mar 2004 DeploymentIncrement 2, Release 1

KEY BENEFITS

Promotes informed compliance and improves problem resolution through Interactive communication among all types of Trade account types.

Electronic payment option reduces paperwork by allowing participants to payfees, duties and taxes electronically.

KEY BENEFITS

Promotes informed compliance and improves problem resolution through Interactive communication among all types of Trade account types.

Electronic payment option reduces paperwork by allowing participants to payfees, duties and taxes electronically.

KEY IMPACTS

Account managementfunctionality expands fromImporter-only to include all types of Trade accounts – Brokers, Carriers, and Sureties. All of theseAccounts share a commoninterface to communicate with Customs.

Expanded participation offers theTrade increased transparency intothe government processes of thesupply chain.

KEY IMPACTS

Account managementfunctionality expands fromImporter-only to include all types of Trade accounts – Brokers, Carriers, and Sureties. All of theseAccounts share a commoninterface to communicate with Customs.

Expanded participation offers theTrade increased transparency intothe government processes of thesupply chain.

Expand Account Management to Other Types of Accounts

Bond Management

Enhanced Risk Management

Expand Account Management to Other Types of Accounts

Bond Management

Enhanced Risk Management

Increment 2, Release 1 – 2.1• Accounts for all Trade types (except Exporters) • Enhanced Account Management: Hierarchies• Enhanced Account Revenue• Bond Management: eBond & Bond Query• Remaining Truck Release Processes• Initiate IPR Database• Enhanced Risk Mgmt: Targeting & Selectivity DB,

and Lab findings

HIGHLIGHTS

13June 5, 2002 eCP Organization

Sept 2004 – Jan 2005 DeploymentIncrement 2, Release 2

KEY BENEFITSSingle, integrated manifest that supports all modes of transport streamlines processesand gives Customs a view of all modes.

Permits filing to be completed anytime, anywhere.

Improves security, by enabling Customs Inspectors to track themovement of cargo while under thelegal custody of Customs, including periods of temporary storage.

KEY BENEFITSSingle, integrated manifest that supports all modes of transport streamlines processesand gives Customs a view of all modes.

Permits filing to be completed anytime, anywhere.

Improves security, by enabling Customs Inspectors to track themovement of cargo while under thelegal custody of Customs, including periods of temporary storage.

KEY IMPACTS

The Trade will see standardized processing for all modes of Transportation (Air, Rail, Truck and Sea) through an integrated manifest and e-release.

KEY IMPACTS

The Trade will see standardized processing for all modes of Transportation (Air, Rail, Truck and Sea) through an integrated manifest and e-release.

Integrated Manifest for all Modes of Transportation

E-Release and Standard Release for All Modes

Cargo and Conveyance Tracking

Integrated Manifest for all Modes of Transportation

E-Release and Standard Release for All Modes

Cargo and Conveyance Tracking

Increment 2, Release 2 – 2.2• Integrated Manifest for all modes of Transportation• e-Release (and Standard Release) for all modes • Integrated process for Import Transactions • Initial Cargo Tracking (In-Bond, FTZ & Warehouse) • Initial Conveyance Tracking• License, Permit, Certification Database• Enhanced Account Revenue• Enhanced Risk Mgmt: Initial Compliance Assessment

HIGHLIGHTS

14June 5, 2002 eCP Organization

Automated Quotas & Visas

Intellectual Property Rights

Anti-Dumping /Countervailing Duty Improvements

Automated Quotas & Visas

Intellectual Property Rights

Anti-Dumping /Countervailing Duty Improvements

Feb 2005 – Jun 2005 DeploymentIncrement 3, Release 1

Increment 3, Release 1 – 3.1

• Automated Quota & Visa Mgmt• Automated AD/CVD• Bond Sufficiency• Enhanced Customs Reference Information• Full IPR Capability

HIGHLIGHTS

KEY BENEFITSKEY BENEFITSKEY IMPACTSKEY IMPACTS

Automated update and status of quotas and management of visas will streamline operations and maintain tighter control of quota limits

Increase IPR compliance rates and improve Customs ability to protect Trade intellectual assets.

Streamline AD/CVD processes and improve coordination with the Dept of Commerce.

Trade is able to better manage imports with quota restrictions.

Customs Import Specialists will be responsible for improving coordination of AD/CVD decisions from Dept of Commerce.

Inspectors and Import Specialist will be able to make better decisions on IPR, with additional upfront information.

Trade will have additional, more timely visibility into IPR data.

15June 5, 2002 eCP Organization

Automated Entry Summary /Importer Activity Summary Statement (IASS)

Trade Statistics and Reporting

Liquidation and Protest Management

Automated Entry Summary /Importer Activity Summary Statement (IASS)

Trade Statistics and Reporting

Liquidation and Protest Management

May 2005 – Aug 2005 DeploymentIncrement 3, Release 2

• Automated Entry Summary (including Importer Activity Summary Statement, and Reconciliation)

• Automated Liquidation• Automated Protest

Management

• Enhanced Account Revenue

• Enhanced Risk Mgmt: Electronic Team Review Findings

• Trade Statistics & Reports

Increment 3, Release 2 – 3.2HIGHLIGHTS

KEY BENEFITS

KEY BENEFITS

KEY IMPACTSKEY IMPACTS

Importer Activity Summary Statement (IASS) reduces reporting burden on Trade.

Improved trade statistics will provide better visibility into international trade.

Automated liquidation and protest management will streamline business processes and improve efficiencies.

Automated liquidation and protest management will reduce burden on Customs Import Specialists and team reviews.

16June 5, 2002 eCP Organization

Jul 2005 – Sep 2005 DeploymentIncrement 4

Increment 4, Release 1 – 4.1

• Full Conveyance Tracking• Full Cargo Tracking • Full Account Revenue

Functions• Full Risk Management

• Account Management: Exporters• Full Export Processing• Multi-modal Manifest• Automated Mail Release • Automated Drawback

HIGHLIGHTS

KEY BENEFITSKEY BENEFITSKEY IMPACTSKEY IMPACTS

Full Export Processing

Multi-modal Manifest

Full Cargo and Conveyance Tracking

Full Export Processing

Multi-modal Manifest

Full Cargo and Conveyance Tracking

HIGHLIGHTS

Multi-modal manifest simplifies reporting and tracking of imports.

Better management and control of Foreign Trade Zone, warehouse, and in-bond activity.

Trade is provided full visibility of all import and export transactions.

Improved visibility to Trade and Customs of in-bond, Foreign Trade Zone, and warehouse activity.

Exporters are provided full transaction capabilities through ACE.

Comments / Questions

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