5th September, 2000 University of Canberra

1. Restructuring Business Practices ‘Helping make today’s ideas tomorrow’s Customs’ 5th September, 2000 University of Canberra Garry Grant Director E-Commerce Australian Customs garry.grant@customs.gov.au

2. Topics • Current Access • The Brave New World - Customs Gateway • Client Registration & ‘Security’ • Law Enforcement • Customs - Quo Vadis? • Questions

3. The Customs Scene • Cleared 4 million import & export entries - 98% lodged electronically • 90% cargo reported electronically • Close to 30 million EDI messages annually • 15 million international air passengers - 35% electronic pre-clearance • $3.7 billion duty/sales tax & $262 million in other charges - electronic funds transfer • $13 billion GST

4. Customs Conundrum • Facilitate Trade • Collect Revenue • Protect the Border

5. Current Electronic Commerce Model (for EDI & Interactive Access) Channels Industry Customs Interfaces (including “Registration”) Brokers/ Freight Forwarders Other Government Agencies Network Service Providers Importers/ Exporters Tradegate Hub Tradegate Hub Carriers ACS Business Applications Government Agencies Customs Data Stores Internet Connections Internal Customs External

6. Current Customs Client Interface Client Tradegate Customs VAN (Telstra) (GEIS) (IBM) AT&T MVS Clearinghouse AT&T Translation Services AT&T 3725 Air Cargo Cargo Management Systems EDI Ethernet Backbone EDI Gateway Air Cargo Sea Cargo Exit EDIFICE Pass Jems Sea Cargo COMPILE EDI EXIT COMPILE ISP (AT&T) ISP TAPIN COTI AT&T GMS Clearinghouse Silicon Crafts Compile /Clear Data Control Point COMPILE Cargo Automators • Eg. • Bigpond • Ozemail • Other Trace Bureau (TEDIS) EDIFICE EDI NOTE : COTI - COMPILE (Customs OnLine Interactive Entries) Over The Internet; some Internet to EDI via connect.com as well..

7. Why Re-engineer? • Commitment of the Australian Government to Online service delivery • Globalisation of trade • Industry trend towards integrated supply chain management • Need to avoid the duplication of data • Rapid expansion in Internet usage by business

8. Cargo Management Re-engineering (CMR) • Single window • Pre-arrival identification of high risk cargo • Intervention by exception • Periodic declarations & deferred payments • Flexible online payments systems

9. Government Requirements • Government Online Strategy • Internet 2001 • Electronic Transactions Act • e-procurement/purchasing • Australian Business Number - Digital Signature Certificate

10. Customs Connect Facility (CCF) - The Concept Channels Industry Interactive Voice Recognition Business Entry Point “Reception” Small Businesses & Individuals Registration & X.500 Directory Services Database Internet Brokers Communication Service Providers Customs/ Quarantine Staff Communities of Interest Networks Security “Firewall” Value Added Services Web Site Importers/ Exporters Security “Firewall” Value Added Networks Other Customs’ Agencies Other Government Agencies Carriers Integrated Cargo System Direct Connect Government Agencies Customs Data Store Internal Customs External

11. Customs Integrated Cargo Business System Applications Clients Government Agencies Customs Staff Security x.500 Directory - Public Key Authentication Payment Facilities CCF Functions Customs Connect Facility Messages EDI Message Services Translation, Syntax & validation checking Interactive Customs Interactive Services Status Enquiry, Create Import/Export Entry Govt Agency Services Interactive, Messages (FTP), e-mail) IVR IVRServices Payment Services CCF Management Services

12. Access Methods to the applications framework Security Services Key Management Session Management Signing Authentication Signature Validation Entitlements/ Authorisations Encryption BATCH INTERFACES EDI Inbound - Individual EDI Inbound - Bulk EDI Outbound - Individual M E S S A G E S E C U R I T Y L A Y E R Host & Mainframe, Midrange & PC Security Services E-mail Inbound • MESSAGE • HANDLER • Receipt/ Response • Syntax & validation Checking • Content Checking • Transformation • Routing EDI Outbound - Bulk Enabling Application Modules E-mail Outbound Fat Client Eg. Online forms, value-added Applications Framework INTERACTIVE Business Application Modules ACS TCP/IP Internal Browser/ HTTP HTML Data Modules WEB SERVER RDBMS Browser/ HTTP Applet Other Platforms Common Business Routines Transfer Module ? WAP Network (future) Housekeeping Modules IVR PSTN

13. CCF - Features • Range of connectivity - Internet, direct connects, dial up & mobile • Flexible and scalable • Variety of EDI message formats • Security (firewall/digital signatures) • Industry concerns

14. What Does Industry Say? • No surprises - more information sooner • Transition phase - what’s happening? • Internet - the way to go! • Security and Authentication • Use Commercial data where possible • Single Window to Government

15. Client Registration • Who are Customs clients? • Government and business sectors • Current authentication process • Legislative requirements • Future connections and changes

16. Security Architecture Model Security Services SMIB* Authentication Authorisation Privacy Users Integrity Non- Repudiation Monitoring Resources Policies Security Functions Status Encryption Antivirus PKI* IDS* Audit Log Security Management

17. Customs & PKI • Mandate ABN-DSC • Authentication • Customs Client Registration Database • ABR • CRL • Other Data Sources • Attribute Certificate (“Cookie”)

18. Digital Certificates - Issues ? • Lack of knowledge about PKI • Need for practical business solutions • Departments to issue own certificates or market driven process? • Base level robust Gatekeeper Certificate - need an outcome!

19. Law Enforcement • E-commerce needs a secure foundation • Hackers and professional crackers • Your site is a target • Liaison between Government and business • Risk based analysis of systems and processes - layered defence with access control by PKI

20. International E-commerce Developments • G7/8 • APEC • World Customs Organisation (WCO) • Trans-Tasman • Data standards and technology

21. Quo Vadis? • One Stop Shop - International Port Lodgement? • Use of Commercial Data • Internet/Web EDI • Cross Recognition of PKI

22. Thank You Garry Grant Director Electronic Commerce Australian Customs Service garry.grant@customs.gov.au www.customs.gov.au