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

2. Agenda U.S. Customs and Border Protection (CBP) Modernization
Data Flows
Automated Commercial Environment (ACE) and International Trade Data Systems (ITDS) Benefits
Benefits to Department of Transportation (DOT) Agencies
e-Release and Truck Manifest

3. 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
The CBP Modernization is a 15-year initiative that CBP has undertaken to modernize its technology and the way it does business.
Modernization is NOT just an Information Technology (IT) project.
Modernization is like an umbrella, covering core business processes of Cargo In and Out, Enforcement, and Passenger In and Out.
The ACE is the first modernization initiative that focuses on Cargo In and Out. We will be adding elements of security targeting, passenger in/out, and mission support since 9/11. We will discuss exactly what ACE is in a few moments.
The main objective of Modernization is to provide the right information to the right people at the right time and place.

4. 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.
The ITDS was chartered in 1995 as part of the National Performance Review.
In 2001, ITDS was integrated with Customs Modernization and ACE design and development.
The goal is to implement an integrated government-wide system for the electronic collection, use, and dissemination of international trade data.
As trade levels increase and security concerns continue to grow, we have to hit a balance between data needs, security needs, data requirements, and trade facilitation.

5. 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
The ITDS exemplifies the government’s effort to recognize the demands of enterprise-wide, business-to-business communications.
The goals of ITDS are to:
Become the government’s standard that supports all federal trade agencies
Improve compliance with Government trade requirements (e.g., public health, safety, export control, etc.)
Provide the trade community with a standard data set for import/export and in-transit for goods and transportation (conveyance and crew)
Provide users with access to more accurate, thorough, and timely international trade data
Facilitate inter-agency coordination of risk assessment for cargo, conveyance, and crew
Provide the trade with a single-window filing interface with a harmonized government-wide data set for import/export, and in-transit information on goods, transportation, and crew
Reduce the cost and burden of processing international trade transactions for both the trade community and the Government

6. Current Data Flow – All Methods
EPA
Environmental Safety
ATF
Alcohol, Tobacco, Firearms, Explosives
FSIS
Traders
Food Safety
Importers and Exporters
DEA
Drug Enforcement
FDA
Food and Drug Safety
Carriers
GIPSA
Truck, Air, Rail, and Sea
Agricultural Standards
ITA
Trade Promotion and Enforcement
ERS
Passengers
Economic Information and Research
International Air, Land, Sea
FWS
Fish, Wildlife and Plants
In today’s environment, international commercial data is generally provided to federal agencies on an individual basis, often resulting in the same data being communicated multiple times to multiple agencies. This slide represents the stove-piped systems that do not communicate with each other.
Methods of communication employed include, telephone, fax, paper, in many cases snail mail, and all too infrequently, electronic transmission.
In many cases, the communication is one-way because we do not have the capability for two-way electronic communication.
These methods are not only costly and inefficient for everyone, they also lack the capability to provide the real-time information that is so essential:
for trade to successfully participate in the highly competitive business environment
to Government agencies in their effort to fulfill their varied missions.
Critical to this process is the elimination of stove-piped systems.
FAS
Foreign Marketing
NHTSA
Truck and Automobile Safety
Solid Lines = All Methods of Communication
Broken Lines = Two Way Electronic Communication
CBP
Import Export Passengers
NRC
Radioactive Material
Sample List
Of Agencies

7. U. S. Customs and Border Protection
ACE/ITDS Data Flow
EPA
Environmental Safety
ATF
Alcohol, Tobacco, Firearms, Explosives
FSIS
Food Safety
DEA
Drug Enforcement
Traders
FDA
Food and Drug Safety
Importers and Exporters
GIPSA
Agricultural Standards
ACE/ITDS
ACE/ITDS
ITA
Trade Promotion and Enforcement
Carriers
ERS
Truck, Air, Rail, and Sea
Economic Information and Research
FWS
Fish, Wildlife and Plants
The CBP is not the only agency critical to this process. The more agencies on board, the closer we come to meeting both government and trade information needs and reducing the reporting burden on the trade community. The way to do this is through ACE/ITDS.
This slide represents the vision of ACE/ITDS – secure, integrated, two-way communication through a single window – between international trade interests and the government. These steps to integration include:
The trade community will electronically transmit its information to a single destination for multiple federal agencies.
The ACE/ITDS will distribute the information to involved agencies.
Only those agencies with a legal or regulatory interest in the information will receive data, and they will receive only that portion of the data for which they have a legal or regulatory access authority.
An integrated ACE/ITDS will provide the real-time information, in a useable electronic format, to federal agencies to further their missions with regard to:
Border Clearance
Preventing Acts of Terrorism
Protecting the Public Health and Safety
Trade Enforcement
Trade Promotion
The ultimate vision is to improve national security and public safety while facilitating legitimate trade through accelerated border clearance.
FAS
Foreign Marketing
U. S. Customs and Border Protection
NHTSA
Truck and Automobile Safety
CBP
Import Export Passengers
Border Compliance
NRC
Radioactive Material
Sample List
Of Agencies

8. ACE/ITDS Benefits More Effective Enforcement and Analysis Efficiency
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
More Effective Enforcement and Analysis:
Information available before arrival of cargo – in many cases before cargo is laden
Cargo can be tracked from foreign lading to delivery
Timely access to transaction-level information for both government and trade
More thorough, accurate, and timely assessment of information to address threats to national safety and security
Facilitates multi-agency efforts
Efficiency:
Facilitates information sharing
Provides capability to accelerate border clearance
Reduces costs – fewer transmissions of data, shorter border times, reduces use of paper
Trade Facilitation:
Single, secure transmission of data, which is distributed to only those agencies with a right to access the information
Data sets harmonized across federal agencies and with World Customs Organization
More complete and timely knowledge of cargo status

9. 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
These eight agencies are currently in various stages of development of their ACE/ITDS functionality. The agencies in red are specific to DOT.
Each has developed and submitted to ACE/ITDS their agency’s Concept of Operations and their functional requirements.
The Federal Motor Carrier Safety Administration will be the first agency to be integrated into ACE/ITDS.
The FMCSA Integration will occur in the e-Manifest: Truck (Release 4) later this year.

10. 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)
The 15 agencies listed have been identified by the ITDS Board of Directors as agencies targeted to commence developmental activities in The agencies in red are specific to DOT.
While they are in various stages of assessing the complete impact that ACE/ITDS could have on their agency, each has at least preliminarily explored the potential benefits that ACE/ITDS provides, and has expressed interest in further participation.
Total impact for each agency is reassessed at each phase of ACE/ITDS development.

11. 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
All transportation agencies are interested in manifest information since it identifies the carriers, conveyances, and crew.
Currently there is great reliance on the collection of paper forms by transportation agencies. The time, expense, and errors associated with data entry and dissemination can be eliminated by electronic data submittals.
Transportation agencies require licenses and permits for various purposes. ACE/ITDS will provide the ability to verify proper licenses and permits as soon as manifests are filed, in advance of arrival at the border.
The filing of electronic manifests will also provide the ability to screen and perform compliance assessments on carriers, conveyances, and crew as soon as manifests are filed, in advance of arrival at the border.
The Trade Act of 2002 requirement for the advance electronic filing of manifests, along with ACE/ITDS, will greatly improve the completeness, accuracy, and timeliness of bill of lading level data for transportation statistics.

12. 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)
The border system of the future must gain a new ability to identify low- and high-risk traffic, speeding low-risk traffic on its way, while focusing the attention of border security personnel on high-risk traffic. - The President’s Budget, Protecting the Homeland
The benefits to joining the ACE/ITDS program are numerous. Examples of how this program will benefits your agency include:
More timely data and information
Reduced agency processing of paper forms
Improved agency targeting of high-risk imports and exports
Integrated agency risk analysis and clearance processing
Improved inter-agency information exchange
Increased customer/stakeholder satisfaction
Improved visibility of cargo status
Continuity of operations

13. DOT Context for ACE/ITDS
DOT plans on five agencies interfacing with ACE/ITDS
BTS, Bureau of Transportation Statistics
FAA, Federal Aviation Administration
FMCSA, Federal Motor Carrier Safety Administration
MARAD, Maritime Administration
NHTSA, National Highway Traffic Safety Administration
Other DOT agencies and organizations are expected to satisfy their international transportation-related data needs through BTS. They include:
FHWA, Federal Highway Administration
FTA, Federal Transit Administration
FRA, Federal Railroad Administration
RSPA, Research and Special Programs Administration
OST, Office of the Secretary
Saint Lawrence Seaway will get any international trade-related vessel data it needs through MARAD.

14. 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
These initial land border sites will be the first to gain access to ACE.
The ACE rollout to these sites is scheduled to occur between Fall/Winter 2004 and Summer 2005.

15. e-Release and Truck Manifest
CBP Officer at Primary
checks ACE screen for results of
CBP and PGA analysis
As trucks
approach border
Radio Frequency signal
transmitted to ACE
CBP Officer
decides to:
Release Shipment OR
Here you see an example of what will be offered from e-Manifest: Trucks (Release 4). ACE will transform the way CBP does business at the borders by:
Providing timely, useful, accurate, and actionable information to the line officers
Enabling line officers to access intelligence and other agency information quickly, and to share that information quickly and directly to PGAs
Expediting the movement of legitimate commerce.
The ACE Secure Data Portal will eliminate multiple system sign-ons.
This will include other PGA requirements as well. (i.e. Hazmat warnings)
Currently, the primary CBP Officer has to wait for the truck to arrive at the booth, view the paperwork, then toggle to the pertinent systems or to multiple systems, and do multiple “releases.”
ACE will provide all relevant data, “on your screen”, through a paperless system, and in a “single-button” decision process.
New features, never available previously, include driver photos, enforcement data, history files, PGA data, etc.
To become an ACE Secure Data Portal account, importers must be Customs-Trade Partnership Against Terrorism (C-TPAT) certified and managed. Carriers do not have to be C-TPAT certified (this is the only exception to the rule).
Hold
and
Examine

16. 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.
Automated truck manifest – allows carriers to submit a manifest electronically.
It will be the foundation for “multi-modal” manifest which will be provided in later ACE releases.

17. Trade Act of 2002 e-Manifest Requirements
The Trade Act of 2002 made the filing of electronic manifests mandatory for all carriers and established the advanced filing requirements.
Electronic manifest will be filed for all modes of transportation. All carriers will be required to submit through e-manifests in advance of arrival.
This chart depicts the required transmission times when cargo declaration data must be received in AMS by CBP for all modes of transportation.
There are different requirements for trucks who are Free and Secure Trade participants. FAST participants are C-TPAT certified and have repetitive, low risk shipments.

18. Trade Act of 2002 e-Manifest Implementation Timeframe
Transportation Mode I
mplementation V
essel
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
This timeline shows the various implementation dates for each mode of transportation as outlined in the Trade Act of 2002 Final Rule of December 3, 2004.
Truck 90 -
days after FR notice

20. Back-up Slides

21. Account Creation (Release 2)
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
WHO
BENEFITS
Release 2 launched in June 2003; 41 importer accounts now have access to the ACE Secure Data Portal.
Release 2 enables a subset of total business requirements, giving the trade community the ability to query and see reports of account financial and transaction data.
Key Features:
Quick Views – shows snapshot of data for the last three years. The data can be sorted and viewed for HTS numbers, brokers, and ports that have the highest value for the year.
Online Action Plan – used to keep track of plan for resolving outstanding issues
Significant Activity Log – means of communications between account and account manager with memos, letters, and s. SAL entries generated at the Importer of Record (IR) number level will also be displayed at the account level.
Reports – importers will be able to query 40 different reports regarding Entry Summary Line Items, Aggregate Importer Reports, Aggregate Entry Summary Compliance Reports, and Cargo Exam Discrepancy Details Reports.
Port Specific and Aggregate information will be offered.

22. Periodic Payment (Release 3)
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
WHAT
WHO
BENEFITS
Release 3 is scheduled for release in summer 2004, with the operational deployment scheduled for fall This release will feature:
Enhanced security and account management capabilities
Initial account revenue capabilities.
Account management enhancements include:
Expansion activities to include 1,100 importer accounts with access to ACE Secure Data Portal
Importer accounts can designate brokers to file on their behalf
Account set up in ACE expanded to include brokers and carriers
Notifications and alerts, revenue reporting, SAL search, and sort.
Initial Account Revenue includes:
Moving from transaction-by-transaction processing to consolidated statement
(Release 3 Account Revenue begins transitions of duty payments from a transaction-by-transaction process to a consolidated Periodic Monthly Statement with payment by Automated Clearinghouse Debit or Credit participants. Only ACH Debit and Credit will be accepted for periodic payment in Release 3.)
Entry Summary data will be passed from the Automated Commercial System (ACS) to ACE on a “real-time” basis.

23. e-Manifest: Trucks (Release 4)
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
WHAT
WHO
BENEFITS
Release 4, which is scheduled to launch in fall 2004, will provide enhanced security and commercial account capabilities.
This functionality will initially be available at seven ports:
Buffalo, NY Detroit, MI Port Huron, MI
Blaine, WA Laredo, TX Otay Mesa, CA
Champlain, NY ***El Paso, TX, is tentative
Release 4 speeds processing at land border ports and enhances security by allowing the registration of crew and conveyances as part of the carrier account. In addition with transponder technology, ACE can identify Truck ID and activate the retrieval of manifest and entry data for inspectors. The proximity card readers will identify the driver and retrieve information about the driver in advance prior to entering the booth at the port.
Key Features:
eRelease – the electronic process of releasing cargo by matching truck manifest with ACS and ACE release mechanisms
Automated truck manifest – allows carriers to submit a manifest electronically and take advantage of eRelease
Consolidated interface for inspectors – allows inspectors to review data in one screen instead of multiple computer systems.
In bond – automates In-bond via the manifest, Customs Automated Forms Entry Systems (CAFES), and QP

24. New Technology WHAT WHO BENEFITS
Selectivity and Cargo Systems: Releases S1, S2, and S3
Technology prototypes: Intelligence Information Factory (IIF), Knowledge Base Risk Management (KBRM), TRAP-EZE
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
WHO
All CBP and PGA users who create and define selectivity and criteria
Analysts at the National Targeting Center (NTC)
Select land border ports
There are three releases for the Cargo and Selectivity system. Each stage will be designed to add new functionality to the base system.
Release S1 will provide support to current and planned enforcement/compliance programs. It will provide manifest selectivity for all modes of transportation and enable detection of trade activity criteria management, including PGAs.
Releases S2 and S3 will provide links to external data sources (to be identified) that can add value to the Automated Targeting System (ATS) data warehouse and provide centralized access to CAPPS findings to analysts to help build and refine selectivity criteria.
Release S2 will support entry/entry summary selectivity, liquidation and reconciliation, authorized movements (in-bond, FTZ, warehouse) and enable system generated analysis, requests, and criteria.
Release S3 will extend selectivity to mail, courier, hand-carry and pipeline, as well as extend analysis, requests, and criteria.
BENEFITS
Supports enforcement/compliance programs
Provides centralized access to Customs Automated Port Profiling System (CAPPS) findings
Provides framework on which sets of analysis tools can be configured and integrated for specific applications
Improves quality of analysis

25. 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
The GBB project team is currently defining the scope of implementation for releases after e-Manifest: Trucks (Release 4). The GBB is part of the continuous improvement effort of CBP to support ACE Modernization in an efficient and cost-effective manner.
The GBB project runs from January to May 2004
The GBB covers the full shipment lifecycle of moving cargo across the border, processing entries, and providing transaction detail for enforcement activities.
GBB expected results:
solution framework to guide future releases, including functional scope, high-level process design, technical architecture, and initial organization impact
description of the “to be” processes
fit-gap analysis to determine how SAP and supplementary technology will support ACE

26. 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
All of the functionality proposed for Releases 5-7 will continue to be integrated into future releases as defined by the GBB team
PGA groups’ input is vital to GBB and collected PGA requirements will continue to be integrated into ACE