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

1. Automated Commercial Environment (ACE)/ International Trade Data System (ITDS) Briefing for the Customs Electronic Systems Action Committee (CESAC) U.S. Customs and Border Protection February 23, 2010

2. Trade Processing Workload On a typical day, U.S. Customs and Border Protection (CBP) facilitates the following trade processing activities… • $90.4M of collections in the form of duties, taxes, and fees • 106,000 entry summaries • 110,000 air waybills, representing 870 flights • 42,000 sea bills of lading, representing 350 vessel arrivals and 55,000 loaded containers • 6,000 rail bills of lading, representing 120 train arrivals and 4,800 loaded rail cars . 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.

3. What is ACE/ITDS? • 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 Since 9/11, CBP has been addressing terrorist threats 24 hours a day by using various strategies and employing the latest in technology. CBP has extended the zone of security beyond our physical borders through the use of bilateral and private sector partnerships, targeting and scrutinizing advanced information on people and products coming into the United States.

4. The ITDS Initiative • Vision: • 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 • Support: • The Security and Accountability for Every Port Act of 2006officially 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 • 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

5. ACE Capabilities Profile Delivered Capabilities – 11 Successful Releases 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 Trade Facilitation Anti-terrorism • 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

6. 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)

7. e-Manifest: Rail & Sea (M1) • 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

8. 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

9. Near-Term Capabilities

10. Back up slides

11. ACS 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 • 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

12. Future Capabilities

13. Future Capabilities, Cont.