Automated Commercial Environment (ACE)/ International Trade Data System (ITDS)

Briefing for the Customs Electronic Systems Action Committee (CESAC)

U.S. Customs and Border ProtectionFebruary 23, 2010

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Trade Processing Workload

$90.4M of collections in the form of duties, taxes, and fees106,000 entry summaries 110,000 air waybills, representing 870 flights42,000 sea bills of lading, representing 350 vessel arrivals and 55,000

loaded containers6,000 rail bills of lading, representing 120 train arrivals and 4,800

loaded rail cars

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On a typical day, U.S. Customs and Border Protection (CBP) facilitates the following trade processing activities…

Also…CBP interacts with 600,000 importers of record annually, represented

through 2,800 Automated Broker Interface brokers. In an average month, CBP receives commodity information from

exporting companies that transmit directly into the Automated Export System (AES), representing 135,000 unique exporting companies or exporting individuals through the use of 800 AES filer participants.

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What is ACE/ITDS?

Since 9/11, CBP has Since 9/11, CBP has been addressing been addressing

terrorist threats 24 terrorist threats 24 hours a day by using hours a day by using

various strategies and various strategies and employing the latest employing the latest

in technology. in technology.

CBP has extended the CBP has extended the zone of security zone of security

beyond our physical beyond our physical borders through the borders through the use of bilateral and use of bilateral and

private sector private sector partnerships, partnerships, targeting and targeting and

scrutinizing advanced scrutinizing advanced information on people information on people and products coming and products coming into the United States.into the United States.

Modernizes commercial trade processing systems with features designed to consolidate and automate border processing to include other federal agencies with a border presence

Provides a single centralized access point to connect CBP, Participating Government Agencies (PGAs), and the trade

Supports CBP border security and trade facilitation mission

Forms backbone of CBP trade processing and risk assessment capability with the Automated Targeting System (ATS)

Interfaces with and consolidates information from the following systems via the ACE Secure Data Portal: ATS TECS FAST (Free and Secure Trade) ACS (Automated Commercial System)

Facilitates collection and distribution of standard electronic import and export data required by all Federal agencies via the ITDS initiative

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The ITDS InitiativeVision:

Single window filing: A single place for the trade community to submit data required by all Federal agencies for the clearance of cargo

Inter-agency data sharing: Dissemination of international trade and transportation data to all Federal agencies involved in import, export, and transportation-related decision making

Status: 46 PGAs including:

• Consumer Product Safety Commission (CSPC)• Animal and Plant Health Inspection Service (APHIS)• Federal Motor Carrier Safety Administration (FMCSA)• U.S. Coast Guard (USCG)

More than 500 ACE end users: Representing 27 PGAs

Support: The Security and Accountability for Every Port Act of 2006 officially established the

ITDS initiative under the Department of the Treasury and mandated agencies involved in licensing and admissibility to join ITDS

Office of Management and Budget Directive M-07-23 mandated that agencies appoint senior executives to an interagency ITDS coordination team

President’s Management Agenda, E-Government Scorecard mandated integration of agency operations and IT investments

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ACE Capabilities Profile

Delivered Capabilities – 11 Successful Releases

Anti-terrorism Trade Facilitation• Enables quicker processing• Fosters efficiency in the primary booth• Provides Trade Partner savings• Expands PGA involvement • Provides Trade access to import data• Increases communication between CBP and Trade Partners• Provides new ACE portal and Electronic Data Interchange (EDI) capabilities specific to the filing and processing of Anti-Dumping/ Countervailing Duty entries and AD/CVD case management

• Targets new information • Links information on all entities• Sends enforcement alerts • Uses business rules-based engine • Allows end users to define and maintain rules• Provides access external intelligence data sources• Focused targeting increases referrals to secondary

ACE is: Operational at all CBP land border ports

Used by over 30 other Federal agencies (almost 600 users outside of CBP)Used by over 16,000 private sector companies

ACE Foundation, Account Creation, Periodic Payment, e-Manifest Trucks, Screening Foundation, Targeting Framework, Advanced Targeting, Enhanced Accounts,

Reference Data, Initial Entry Summary Types, Remaining Entry Summary Types

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Releases

Current Schedule Outlook Rail and Sea Manifest (M1)……………………………….………………..Fall 2010

Post-Summary Corrections and Additional Functionality (A2.3.2a)……Fall 2010

Future Releases ESAR: Remaining Entry Summary Types (A2.3)

Air Manifest (M2.1)

Cargo Release (M2.3)

Full Multi-Modal Manifest (M2.2)

Exports and Mail Entry Writing System (M3)

Bonded Facilities Control (M4)

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Project Status Current build plan and contractor testing continues to progress

Collaborated with contractor to enhance project level processes for SIT test case and PTR review

Assistant Commissioner, OFO approved policy decisions to support trade interface requirements

Requirements Integrated Product Team (IPT) established, kick-off held, and validation of requirements, design, and traceability has begun towards a February 26 completion

Received approval from CBP CIO on strategy to address and resolve outstanding DHS PADR findings

• Plan of action and milestones to be completed based on outcome of IPT effort and incorporating DHS requirements for PRR PADR

Acquisition IPT established to definitize the work under the current UCA

• Performance work statement alpha contracting sessions on-going

• Overall re-plan for remaining work to begin February 5

• Acquisition strategy to be defined and contract definitized once requirements baseline validation complete with a target date in April

e-Manifest: Rail & Sea (M1)

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ACE Entry Summary, Accounts, and Revenue Update

Project Status

A2.3.1a

• Go-live date was on 2/14/10

• Training of OFO field employees is progressing with training continuing over

the next couple of weeks

A2.3.2a

• Contract negotiated 12/3/09 at $13.017M ($13.8M approved by the ESC)

• Critical Design Review is scheduled for 4/1/10

• Go-live planned for Fall 2010

A2.3.1b

• Planning for EDI Imaging

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Near-Term Capabilities ESAR: Post-Summary Corrections and

Additional Functionality (A2.3.2a)

Automates manual process of submitting amendments and corrections to entry summary documents

Rail and Sea Manifest (M1)

Incorporates rail and sea manifest processing into ACE

Deployment• Fall 2010 • Fall 2010

Features• Automates the manual process of submitting

amendments and corrections to the entry summary documents that importers (or their authorized brokers) submit today  

• Enables the filer to make corrections after an entry summary document is submitted, prior to liquidation, on ACE entry summary data presented to and accepted by CBP

• Provides enhanced liquidation worksheet, which includes pre-population of collection amounts from ACS 

• Ability to place or remove holds at container level

• Broker download capability for rail and sea carriers

• Automated validation of bonded carrier identification

• Consolidated view of rail and sea shipment manifest and entry data at bill of lading or container level

Benefits• Streamlined, paperless process for filers to make

corrections to their documents• The ability to track submissions and processing status • The ability to update multiple entry summaries at one

time • New reports for Post-Summary Correction and Team

Review

• Improved cargo security, expedited cargo processing, and trade facilitation through a consolidated view of data

• Faster, easier access to data through integrated entry, manifest, and risk assessment information for rail and sea cargo

• Retires AMS rail and sea processing

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Back up slides

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ACE Program Successes ACE Secure Data Portal

More than 15,000 trade user accounts

Enables users to proactively check for unauthorized filers and monitor compliance data not available through the Automated Commercial System (ACS)

Allows truck carriers to file electronic manifest via portal at no charge

Provides access to over 100 customizable reports

ACS

Periodic monthly statements Approximately $1B average monthly collection of revenue via the ACE periodic

monthly statement feature, representing more than 40% of all duties, taxes, and fees collected

Allows duty payments on the 15th working day of the month, providing significant cash flow benefits

ITDS access to ACE Access to ACE specifically benefits the missions of other agencies:

• Food Safety and Inspection Service (FSIS)• Consumer Product Safety Commission (CSPC)

Electronic filing of truck manifest data Processed approximately 36% faster at measured locations as compared to ACS Processing an average of 190,000 trucks nationally per week

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Future Capabilities

Entry Summary, Accounts, and Revenue (ESAR)

Remaining Entry Summary Types• Expands capabilities and adds quota, anti-dumping and countervailing duties, reconciliation,

and post-entry amendments business processes• Reduces the amount of manual input of quota as it relates to quota decrementing and

prorating • Reconciliation flagging on entry summaries will move from header to line level

Enhanced Entry Summary Functionality• Expands capabilities to include such areas as drawback, liquidation, and protest business

processes • Further automates drawback process by providing increased visibility and tracking of claims

and financials• A significant amount of data will be available electronically via ACE • E-Bond

Border Enforcement and Management Systems (BEMS)• Financials Project – financial processing including accounts receivable, general ledger, and

collections will move to ACE

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Future Capabilities, Cont.Cargo Control and Release (CCR)argo Control and Release (CCR)

Air Manifest (M2.1)• Expands multi-modal manifest processing to include air cargo • Enables seamless movement and tracking of in-bond cargo across air-sea-rail modes• Accommodates electronic transfer of bond liability • Improves trade community’s visibility of cargo through cargo status event notifications• Accommodates air cargo holds at master, house, sub-house, and simple bill of lading levels• Facilitates faster, more accurate cargo processing through use of broker download feature for air

Cargo Release (M2.3)• Facilitates faster cargo processing by providing CBP officers security screening results in ACE• Provides new cargo status querying capabilities, giving trade community visibility into cargo screening

results, hold status, and other government agency requirements • Incorporates the informational and operational requirements of more than 40 Pages

Full Multi-Modal Manifest (M2.2)• Establishes full multi-modal manifest processing in ACE for all transportation modes • Facilitates faster cargo processing through modernized automated systems and reduced reliance on

manual data entry • Provides customized reporting capabilities and enhanced access to cargo control and release data

Exports and Mail Entry Writing System (M3)• Brings export processing into ACE (modernizes transportation component of ACE)• Incorporates the stand-alone Mail Entry Writing System into ACE

Bonded Facilities Control (M4)• Expands ACE capabilities to bonded facilities, including cargo control partners, terminal operators,

ocean port and airport authorities, container freight stations, warehouses, Foreign Trade Zones of international transportation providers, entry filers, and international pipeline operators

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