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Global Business Blueprint (GBB)

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Global Business Blueprint (GBB) Business Process Overview to the Trade Community June 29, 2004 Agenda Opening Remarks ... – PowerPoint PPT presentation

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Title: Global Business Blueprint (GBB)


1
Global Business Blueprint (GBB)
  • Business Process Overview to the Trade Community

June 29, 2004
2
Agenda
  • Opening Remarks .. 100 115
  • SAP Fundamentals 115 145
  • GBB Approach. 145 215
  • Break .. 215 230
  • GBB Results .230 500
  • Integration Scenario (Designer Apparel
    Incorporated)
  • Scenario Supportive System Solution
  • Process Improvement Opportunities
  • Bureau of Customs and Border Protection (CBP)
    Issues being Addressed
  • Business Benefits for the Trade Community

3
Opening Remarks
CBP 2005-2009 Strategic Goals Modernization
Mission and Vision
  • Commissioner Bonner has established the following
    prioritized strategic goals for the next
    five-year period
  • Preventing Terrorism
  • Balancing Legitimate Trade and Travel with
    Security
  • One Face at the Border
  • Strengthening Our Control of the United States
    Borders
  • Protecting America and its Citizens
  • Modernizing and Managing
  • The U.S. Customs and Border Protection
    Modernization Mission and Vision
  • is to build a dynamic CBP organization, enabled
    by information and technology to meet agency
    business expectations and thrive in the midst of
    tumultuous change. This new environment will
    build on robust technologies and global best
    practices with the capacity and flexibility to
    support future growth and changing business
    requirements in an ever-changing world.

4
Opening Remarks (continued)
  • Why are we here?
  • Summit was presented to U.S Customs and Border
    Protection (CBP) stakeholders in context of
    people, process, and technology
  • Present results of GBB through a scenario
  • Background
  • Presented GBB as new concept, new approach at
    Trade Support Network (TSN) in January 2004
  • SAP already being used and will remain as
    backbone for remaining Automated Commercial
    Environment (ACE) functionality
  • SAP 101 (Fundamentals) necessary to understand
    SAP concepts as we go through the scenario and
    also as we move forward to release-level work

5
Opening Remarks (continued)
  • Captured to-be vision for ACE Cargo Management
    Lifecycle via series of workshops with
  • Collaboration with Headquarters (HQ) Business
    Process Owners (BPO)
  • Focus on what, rather than how
  • Consideration of current trade requirements
  • Trade community Participating Government
    Agencies (PGA) input at workshops in March using
    straw model
  • Deliverables of GBB
  • Business Process Flow Model The to-be business
    processes, capturing an integrated solution for
    the ACE Cargo Management Lifecycle
  • SAP Fit/Gap Analysis The functional and
    technical solutions (SAP or otherwise) that best
    support the CBP business processes

6
SAP Fundamentals

7
Evolution of ERP
  • What is ERP?
  • Enterprise Resource Planning is a software
    solution that enables integration of various
    departments and functions across a company onto a
    single computer system that can serve all those
    different departments particular needs.

8
Evolution of ERP (continued)
  • Before ERP became popular, companies invested in
  • Specialized computer systems
  • Needs of an individual department
  • Hundreds of different systems
  • Custom system
  • Many times the different computer systems were
    not integrated resulting in a stovepipe effect

9
SAP Benefits
  • Flexible Configurable to meet business needs
  • Real-time Validation
  • Updates information immediately in the system as
    the data is saved
  • Provides direct access to current data and
    reports
  • Reduces operation costs
  • Audit Trail
  • All transactions can be tracked to the person
    entering or changing data
  • Integrated
  • Data entry in one module is immediately available
    in others
  • Eliminates duplication of data and increases data
    accuracy
  • Increases the coordination between departments

10
SAP Public Services Experience
SAP is successfully leveraging its historical
success to make a significant impact with the
public sector.
Productive Federal Clients include
  • Bureau of Engraving Printing
  • Defense Logistics Agency
  • Department of Defense (DOD) Enterprise Software
    Initiative
  • General Services Administration
  • Internal Revenue Service (IRS)
  • National Aeronautics and Space Administrations
    (NASA)
  • NAVAIR
  • NAVSEA
  • NAVSUP
  • NAVY Moral Welfare Recreation
  • Oakridge National Lab
  • Picatinny Arsenal
  • SPAWAR
  • Strategic Petroleum Reserve
  • UNICOR
  • U.S. Army (LMP)
  • U.S. Geological Survey

SAP at CBP
  • Office of Finance

11
Data Organization in SAP
The fundamental data framework within the SAP
system
SAPs static informational and processing/paramete
r data
Hierarchy
SAP
Master Data
On-line tasks which combine to form
integratedbusiness processes
Transactions
12
Data Flow in SAP
See Appendix for definitions
13
SAP Components
  • CRM Customer Relationship
  • Management
  • Communication Tools
  • Business Partner
  • FI Financial Accounting
  • General Ledger
  • Accounts Receivable
  • Accounts Payable
  • Special Ledgers
  • SD Sales Distribution
  • Sales Order
  • Outbound Delivery
  • Billing
  • Foreign Trade
  • GTS Global Trade Services
  • Foreign Trade
  • Sanction Party List
  • Denied Party List
  • IS-PS Industry Solutions for
  • the Public Sector
  • Budgetary Ledger Postings
  • Proprietary Ledger Postings
  • WF Workflow
  • Event Handling
  • Task Notification
  • Parallel Work Routing
  • SCM Supply Chain
  • Management
  • Event Management
  • Delivery Scheduling
  • Demand Management
  • MM Material Management
  • Procurement
  • Inventory Management
  • Foreign Trade

See Appendix for definitions
14
Questions
?

15
Global Business Blueprint (GBB)
  • Approach Results

16
GBB Purpose
  • Define an end-state integrated process vision for
    future technology which is a collection of
    documentation defining to be business processes
    and how CBP will use SAP and other technology
    applications and tools to perform these functions
  • Define an integration approach leveraging current
    ACE technologies
  • Develop or refine existing program strategies,
    including project schedule, cost and
    implementation sequence
  • Define the baseline scope
  • Provide updates to the ACE Program Plan
  • Determine the appropriate system solution for
    future functionality

17
GBB Approach
Where we ended up was understanding the
integrated processes and how they will work in
the future end state
  • Refined process flows as a result
  • of GBB Business Process Decomposition

GBB started by performing A breakdown of a
business process to the sub-process level to
obtain a high level understanding of the business
process requirements, synergies with other common
processes, and the key inputs and outputs. FOCUS
on What needs to be done, why it needs to be
done, who does it
Where we are now. . . Analysis has been completed
within the team that reviewed the collected
business processes and determined appropriate
technical solutions for each business process.
FOCUS on how SAP or other technical components
may be used to support CBP business processes in
the future.
At the start we did not focus on how? A process
flow is not a detailed understanding of how the
tasks in a process are executed currently nor the
detailed requirements of that process.
Complete Gap Analysis Develop Model 2
Confirm Model 1
Create Straw Model
Review Refine Model
Conduct Model Integration Reviews
Validate Model w/ PGAs TSN
March/April
February
18
GBB Results Summary
  • Provides an integrated process / technical
    framework for the ACE Cargo Management Lifecycle.
    This framework emphasizes the right information
    for the right people at the right time.
  • Leverages the best for all modes of
    transportation and provides the flexibility to
    support the variations within each mode.
  • Includes a framework which fully integrates the
    export process to realize the benefits of a
    closed-loop system.
  • Moves to a master data-driven system from a
    transactional-based approach, providing greater
    visibility and access to centralized data.
  • Provides CBP, PGAs, and the trade community with
    a future direction through an integrated solution
    suited for a dynamic external environment.

19
GBB Results Quick Facts
  • Business Process Flow Development
  • Total Workshops 77 Process Breakdown
  • CBP Process 55 Level 2 33
  • TSN PGA 11 Level 3/4 162
  • Other 11
  • Port Visits 4
  • Touch Points Evaluated
  • PGA TSN 11 workshops conducted across all
    major process areas
  • All major TSN groups participated in Workshops
  • 8 PGAs were involved in the Workshops (Census
    Bureau, Food Drug Administration, Federal
    Communication Commission, USDA/Animal Plant
    Health Inspection Service, International Trade
    Commission, Federal Maritime Administration,
    Federal Motor Carrier Safety Administration and
    U.S. Army Corps of Engineers)
  • Duties, Taxes and Fees, HTS, and other data
    objects

20
GBB Results TSN/PGA Workshops
  • Sessions held late March/early April
  • Account Management Export Accounts
  • Account Management Carrier and Courier
  • Account Management Importer, Broker, Warehouse
    Operator
  • Account Management Foreign Trade Zones (FTZ)
  • Account Management and Manage Finance Sureties,
    e-Bond and Bond Sufficiency
  • Manage Finance Protest, Liquidation, Netting
  • Manage Release (Export Process) Pre-Departure,
    SED/Manifest, Licensing
  • Manage Release FTZ Admission, Entry and Export
    Process
  • Manage Release e-Manifest for Sea, Rail, Air
  • Manage Post Release Entry/Entry Summary, Recon,
    Post-Summary Corrections, Importer Activity
    Summary Statement (IASS)
  • Manage Post Release Drawback

21
GBB Results (continued)
  • Trade community/PGA overview of high-level
    process, with understanding that further detail
    to be defined in next stage of process
  • 93 said expectations met
  • 90 said level of detail adequate
  • 100 said joint sessions with Trade community/
    PGAs are valuable
  • These sessions allow the PGAs to see first hand
    that the trade is sincerely interested in the
    same goals as the PGA. (i.e. full compliance)
  • As a PGA, it gives a better understanding of
    what the trade goes through to get me this
    information
  • Need to provide more detail confirmation/validat
    ion not possible at level presented
  • It would be helpful to have agenda and
    information for discussion prior to meeting so
    could do preparation

22
Follow-up Focus Sessions
  • Arrival/Pre-Arrival
  • Export Controls
  • Accounts
  • Brokers Setting up Importer Accounts
  • Air Industry Business Practices
  • PGA-granted Licenses, Certificates, Permits
  • Post Release
  • Foreign Trade Zone (FTZ) Weekly Entries
  • Importer Activity Summary Statement (IASS)
  • Post-Summary Corrections
  • Finance
  • Statement and Netting

23
Introduction to the Integrated CBP Cargo
Management Lifecycle Process

24
Integrated CBP Cargo Management Lifecycle
End to End Process
25
SAP Functional Scope
The following SAP Software Components have been
initially identified as necessary to enable the
business process scope.
  • Account Relationship Management
  • CRM Customer Relationship Management
  • SD Sales Distribution
  • GTS Global Trade Services
  • EM Event Manager
  • Finance
  • FI G/L General Ledger
  • FI A/R Accounts Receivable
  • FI FM Funds Management
  • ISPS-CD- Public Sector Collections
  • Disbursement
  • Financial Reporting
  • Release Pre-Arrival Arrival
  • GTS Global Trade Services
  • CRM Customer Relationship Management
  • SD Sales Distribution
  • MM Materials Management
  • EM Event Manager
  • BI Reporting, Analysis
  • BW Business Information Warehouse
  • R/3 - Reporting
  • Post Release
  • CRM Customer Relationship Management
  • GTS Global Trade Services
  • SD Sales Distribution
  • MM Materials Management
  • EM Event Manager
  • SAP Technical
  • Enterprise Portal

See Appendix for definitions
26
GBB Results Fit / Gap Analysis
  • A Fit/Gap analysis is a rating for determining
    the technical solution to meet the requirements
    of the business process
  • Basic Definitions
  • FIT The defined to be business process can be
    mapped to the SAP system through configuration.
  • GAP The defined to be business process cannot
    be mapped to the SAP system through
    configuration.
  • Overall a high degree of process FIT has been
    identified with the process areas

27
GBB Results Process Gaps
  • Major Process Gaps Identified to date
  • Manifest Document A complex multi-level
    document is required to support the Manifest
    process in SAP. The structure of the document
    requires a series of nested levels with large
    amounts of data required at each level.
    Additionally, the manifest documents must be
    correlated to the Filer / Entry documents that
    allow the release of cargo into the commerce of
    the US. Currently, this process is not enabled
    by any SAP solution, however, eCP and SAP are
    co-developing the Multi-Modal Manifest solution
    for incorporation into the SAP GTS software.
  • Visibility of all Cargo Management Lifecycle
    transactions An important aspect of CBP process
    is the ability to have traceability to the
    transaction lifecycle of cargo, conveyance,
    equipment, and individuals moving in and out of
    the US. While SAP provides excellent workflow
    capabilities, there will have to be enhancements
    to provide full lifecycle visibility of all
    transactions across SAP systems.

28
Key Themes
The solution framework we will be walking through
today is focused on the following themes
  • GBB
  • Combined People, Process, Technology
    Perspective
  • Process and Technical Integration
  • Standardization / Commonality of Processes
  • Data and Process Discipline
  • Information Accuracy, Harmonization, and
    Accessibility
  • Quality at the Source Right Information
    Available to the Right People at the Right Time
    throughout the Process
  • Building on ACE work done to date
  • End-to-End solution showing one thread
  • Trade
  • Incorporates Best Business practices from the
    trade community
  • Opportunity to re-engineer the Trade processes to
    fit within proposed CBP design
  • Ensures the smooth flow of legitimate trade
  • Reduces redundant information requirements
  • Promotes uniformity among CBP ports
  • Reduces reliance on paper processes
  • Eliminates unnecessary processes
  • Provides for incorporation of PGA requirements

29
Integrated CBP Cargo Management Lifecycle
Process View
This diagram represents the logical view of the
process areas. It will be used to facilitate the
process scenario discussion depicted on the
following pages.
30
Integrated CBP Cargo Management Lifecycle
Technical Enablers
During GBB, the team mapped the processes to SAP
software components and identified interfaces to
other required systems.
Other Legacy and Touch Point Systems
Other Government Agency Systems
Office of Finance - SAP
Legal and Policy
See Appendix for definitions
31
SAP Technical Enablers
  • GTS - (Global Trade Services) is an international
    trade compliance solution that provides import
    and export control functionality for screening
    legal responsibilities, business partners and
    trade documents. Automation includes processing
    the in bound manifest, entry and authorized
    movement documents. The correlation of trade data
    for checking for licenses, permits, certificates
    and integrated admissibility screening prior to
    release.
  • CRM - (Customer Relationship Management) enables
    key processes in Account Management, Release, and
    Post Release. Automates core business operations
    across all account touch points Entry/Entry
    Summary, Quota, DTF (CRM Sales), Account
    Management (CRM Business Partners), Trend
    analysis (CRM Marketing), and Case Management,
    Verification (CRM Service).

32
SAP Technical Enablers
R/3 - Enterprise handles Billing, Inventory
Management and Finance. All of the SAP solutions
listed above are born out of SAP R/3. Any sales
document created in the GTS/CRM system will be
replicated into R/3 so that process in Billing,
Statement Processing, and Finance can be
executed. Master data like Account Data will be
replicated to R/3 while data like HTS and DTF
will be maintained in R/3 and replicated to the
appropriate systems real-time. BW (Business
Information Warehouse) is SAPs data warehouse
and business intelligence solution for reporting,
decision support, analysis and data mining. It
will enable CBP to access and analyze combined
historical data from GTS, CRM, R/3 and non-SAP
applications. Master data (like account, HTS,
DTF) and transaction level data (entry/entry
summary, authorized movements, quota, AD/CVD
etc) will be extracted from the SAP solutions to
provide both operational and analytical reporting
to support the Cargo Management Lifecycle.
33
Integrated CBP Cargo Management Lifecycle
Systems Viewpoint
See Appendix for definitions
34
Integration Scenario
  • This Transaction scenario depicts the to be
    end-to-end process for importing and exporting
    goods into and out of the commerce of the United
    States

35
Integration Scenario
Designer Apparel Inc.
  • Designer Apparel, Inc. has been importing for
    three years and has decided to initiate an import
    venture of silk from Hong Kong from Wormer,
    Inc., a silk producing factory.
  • There are manufacturing plants in the U.S. and
    Canada that will each receive portions of the
    shipments to be manufactured into the Evans fall
    2004 Clothing Line.
  • Designer Apparel, Inc. will send a portion of
    their imported cargo to a subsidiary company in
    England and claim drawback against the import
    entries.
  • Additionally, Designer Apparel wants to use a new
    Broker, Hall Brokerage.

36
Request Portal View of Account
  • Mark Porter, the newly designated import/export
    Manager for Designer Apparel, Inc., has decided
    that he would like to view and update the
    existing account data for Designer Apparel, Inc.
  • Step 1 Mark locates the ACE user ID Application
    on the Customs Modernization tab and completes
    the online application through a CBP secure
    Internet web page.
  • Step 2 Mark submits the online application on
    the CBP website with the following data
  • a list of the companys principal officers and
    their contact information
  • the companys fiscal year end date
  • relationships to other business entities
  • Agreed to the Terms and Conditions document

37
Creation of ACE user ID
  • Step 3 The CBP Account Administrator (role to be
    defined), Roberta Bruno, logs into ACE and sees
    that she has a received a message on her homepage
    that an application for a new ACE user ID needs
    to be reviewed.
  • Step 4 Roberta Bruno reviews Mark Porters
    application to confirm that all the required
    information has been provided on the online
    application.
  • Information entered is automatically validated by
    ACE
  • After all validations have successfully passed,
    the CBP Account Administrator establishes the
    user ID and password in ACE.
  • Step 5 Notification sent to Mark Porter (Account
    Owner) by ACE with his new ACE user ID and
    password for access to the Designer Apparel, Inc
    account.

38
Creating a Broker Account
  • Designer Apparel, Inc., wants to use new broker,
    Hall Brokerage. Hall Brokerage has received their
    CBP broker license, which they applied for one
    year ago. Now Hall Brokerage would like to
    manage their account in ACE and applies for a
    user ID and password.
  • Step 6 CBP Account Administrator (role to be
    defined) reviews the Broker Account information
    and sees that Sarah Combs will be account owner
    for Hall Brokerage and enters the information
    into ACE
  • name, address, and contact information within the
    account
  • Broker Exam, License, Permit EIN number
  • Any related information

39
Account Validation
  • Step 7 ACE validates that
  • The address is correct and within the accepted
    format,
  • A duplicate account is not entered by verifying
    that the combination of Broker EIN number and
    address does not exist
  • Step 8 ACE account activation and notification
    sent
  • After all validations and verifications have
    passed, a notification is sent to Sara Combs at
    Hall Brokerage that the ACE account has been
    created and is provided an ACE Broker account,
    user ID, and password

40
View Account Information
  • Step 9 Sara Combs signs onto the ACE Secure Data
    Portal using her ACE user ID and password to
    enter ACE and searches in the system with Hall
    Brokerage ACE account number to manage the Hall
    Brokerage account

41
Account Management
  • Designer Apparel has expanded their line of
    business to accessories by acquiring a new
    subsidiary, Accessories Etc Company. Now that
    Mark has an ACE user ID, he would like to update
    the Designer Apparel account with new information
  • Step 10 Mark Porter logs onto ACE using his ACE
    user ID and password to maintain the Designer
    Apparel account
  • Mark searches for the Designer Apparel account
    using his Importer of Record number
  • The Designer Apparel account number is a uniquely
    generated by SAP and is different than the
    Importer of Record (IR) number however, the IR
    number is an attribute of the account

42
Account Management
  • Step 11 Within the Designer Apparel account,
    Mark Porter has the authority to
  • Maintain Designer Apparel, Inc.s name, address,
    and updates his new contact information within
    the account.
  • Assigns user access rights to specific account
    information to those individuals involved with
    the Designer Apparel, Inc. account.
  • Grants access to his Brokers Hall Brokerage
    (existing CBP account)
  • Grants access to his Carriers Sunkist Ocean
    Liners (existing CBP account)
  • Grants access to his Surety (existing CBP
    account)
  • Maintain Designer Apparel, Inc. account
    structure by linking existing Importer of Record
    (IR) numbers of newly acquired Accessories Etc
    Company.

43
Account Management
  • Step 12 ACE validates updated/changed data
  • Once the account information is updated and
    changed by Mark, ACE will validate the data
  • Step 13 Notification
  • After all validations are passed, a notification
    is sent to Mark and the account manager that the
    ACE account has been updated

44
Relevant GBB Findings
  • Account Management

45
Account Management
  • Process Improvements
  • Mistake-proofing the account creation and
    maintenance processes through the use of SAP CRM
    account data edit checking and portal
    technologies. Ensuring account data is set up
    properly up-front in the process reduces the
    number of times the account data is handled
    during routine maintenance, as well as daily in
    the field.
  • Elimination of duplicate account entries and
    centralized account data, affording full
    visibility to accounts better decision support
    in the field and at HQ

46
Account Management
  • CBP Issues Being Addressed
  • Creating an account for every entity that does
    business with CBP
  • Maintaining centralized data
  • Requiring accurate account data up-front
  • Eliminating the port-generated ID
  • ACE-generated unique identifier

47
Account Management
  • Business Benefits to the Trade Community
  • Use of current and consistent technology enablers
  • Access to ACE with a single user ID and relevant
    security permissions
  • Access to CBP forms communications according to
    need
  • Uniform account view for both CBP, account, and
    authorized government agencies
  • Access to historical and transactional
    information
  • Centralized account updates, rather than
    port-by-port
  • Visibility to special instructions for trade
    community from CBP headquarters
  • Improved and streamlined communication with CBP,
    PGAs

48
The Carrier Transports the Cargo
  • Sunkist Ocean Liners, owner operator of the
    vessel, has an International Carrier Bond already
    established.
  • Step 14 Fred, working for Sunkist Ocean Liners,
    submits the manifest data via EDI
  • A list of the separate items of merchandise being
    transported by the carrier
  • Includes both trip and shipment data twenty-four
    hours in advance of lading in Hong Kong
  • Includes in-bond data for the 6 containers (900
    rolls) of goods being exported to Canada, filed
    as part of the Multi-Modal Manifest data filed
    twenty-four hours prior to lading
  • The silk shipment is expected to arrive in San
    Francisco from Hong Kong in twenty working days
    after departure.

Manifest Information Available
49
The Broker Files Transaction Data
  • Step 15 Sara Comb at Hall Brokerage, Designer
    Apparel, Inc.s Broker, enters the entry
    transaction into the brokerages electronic
    message data for transmission to ACE (new ABI).
    Ms. Comb files entry/entry summary for the 4
    containers (600 rolls) of woven silk fabric
    (5007.10.60.30) entering the U.S. commerce

50
Process the Entry
  • Step 16 Once the entry data has been received
    and validated by ACE, the correlating process
    links the entry to the corresponding bill of
    lading.
  • Note Since the in-bond document information was
    filed as part of the multi-modal manifest, an
    automatic correlation occurred as part of the
    filing. If a separate in-bond transaction is
    produced by an entity other than the carrier,
    correlating will be required
  • Step 17 Following the successful correlation,
    ACE indicates two containers require further
    review.

51
Process the Entry Summary
  • Step 18 Following the successful correlation,
    the ACE system will now validate the duties,
    taxes, and fees associated with the entry
    summary.
  • Step 19 Real time Bond Sufficiency check

Continuous Bond Liability
Quota Information
52
Entrance and Clearance for Sunkist Ocean
  • Step 20 Sunkist Ocean submits the electronic
    departure message from the last foreign port of
    Hong Kong. In addition, Sunkist Ocean submits the
    entrance data to CBP.
  • ACE checks against carrier account master data
    for applicable Licenses, Permits, Certificates
  • Check Lloyds number against carrier account
  • Check the conveyance safety certificate
  • All released cargo statistics are updated and
    distributed to the relevant PGAs and Other
    Government Agencies (OGAs)

53
Entrance and Clearance for Sunkist Ocean
  • Step 21 5 days prior to arrival, CBP
    communicates that the previously identified
    containers (shipments) are on HOLD and will
    require inspection in San Francisco. The other
    shipments are released
  • Step 22 Sunkist Ocean Liners submits electronic
    Pre - Arrival Notification to CBP
  • Step 23 Sunkist Ocean Liners receives permission
    to unlade.
  • Step 24 An SAP business document will be created
    to calculate conveyance fees and taxes.

54
Release Processing of Cargo
Auth Move Status
  • The 2 previously identified containers are
    un-laden for verification at the designated pier
    staging area.
  • Step 25 The containers are processed via the
    mobile VACIS and the findings are recorded.
  • The first container (shipment) is released.
  • The second container requires further
    examination
  • Route to CES for further examination
  • Step 26 CBP officer informs carrier
    (electronically) that container 2 is required at
    a local CES.

55
Release Processing of Cargo
  • Step 27 Carrier submits electronic PTT via ACE
    to move container 2 to the local CES. After CBP
    approval, the electronic PTT will be sent to the
    assigned CES inbox via workflow.
  • Step 28 Once container 2 arrives at the CES, the
    CBP officer performs the examination and
    releases the container.
  • Meanwhile . . . Back at the
    pier. . .
  • Step 29 The remaining 9 containers have been
    released upon arrival

Auth Move Status
56
Carrier closes Authorized Movement
  • Wheeler Trucking proceeds to move a container
    from the Port of San Francisco to the Port of
    Blaine for export to Vancouver. Wheeler will be
    transporting the cargo under the Sunkist carrier
    bond.
  • Step 30 CBP receives in-bond (TE) initiation
    message from the carrier once the freight is in
    possession.
  • Step 31 25 days has elapsed and the in-bond
    cargo has not arrived in Blaine. The system
    automatically notifies the carrier that 5 days
    remain to complete the authorized movement.

57
Carrier closes Authorized Movement
  • Step 32 The carrier issues an arrival message
    once the conveyance has reached Blaine.
  • Step 33 The carrier issues a departure message
    to CBP and the in-bond (TE) document is closed.

58
Relevant GBB Findings
  • Manage Release

59
Manage Release
  • Process Improvements
  • Better security due to improved conveyance and
    equipment tracking
  • Improved data accuracy - the manifest information
    is filed only once, electronically. (This does
    not imply that changes cannot be processed)
  • All import and export manifests will use the same
    format for filing of data (Multi-Modal Manifest).
    This will ease operational complexities for both
    the trade community and CBP.
  • A more tightly integrated process from
    pre-arrival through release.
  • Maintaining certificates electronically will
    greatly reduce the need for paper and manual
    verification which facilitates reduced cycle
    times for release processing
  • Better tracking and visibility of all warehouse
    transactions/movements
  • Common verification process for all transport
    modes

60
Manage Release
  • CBP Issues Being Addressed
  • Developing a common manifest document for import
    and export
  • Matching the entry to the corresponding manifest
    item to secure release of the merchandise
  • Tracking and status for Authorized Movements
    (including Delivery Tickets and PTT)
  • Requiring advanced manifest data which will
    include information about the cargo, conveyance,
    individuals and equipment in compliance with the
    Trade Act of 2002
  • Handling User fees in ACE
  • Developing a mitigation strategy for the
    accumulation of transaction data for shipments
    that never arrive
  • Reviewing regulations which address the
    automation of the zone admission process

61
Manage Release
  • Business Benefits to the Trade Community
  • Common processes and new technology for all modes
    of transport
  • Integration of the Import Export processes
  • Greater visibility of data for Trade PGAs
  • ACE will be the one system that will support
    the life cycle of a shipment within CBP
  • Automation of Entrance Clearance process
  • Elimination of paper documents
  • Improve data accuracy for intermodal moves
  • Improve ease of use by utilizing Web Portal
    and/or EDI
  • Increased uniformity of CBP processes between
    ports
  • Faster processing and releasing of cargo
  • Master/House bill processing will be common to
    all modes
  • Opportunity to re-engineer trade processes to fit
    within proposed CBP design

62
Financial Processing for Imports
  • Accounts Receivable / Revenue is recognized and
    posted to the general ledger accounts
  • Step 34 Subsequent to the successful
    verification of the entry summary (7501) or
    certified at entry (3461), SAP billing process is
    initiated, accounts receivable is recognized.
  • Step 35 During the month, the importer / broker
    logs onto the ACE portal to review their
    outstanding accounts receivable(s). The importer
    / broker verifies the entry summaries / accounts
    receivables that will appear on periodic
    statements and / or bills.

63
Financial Processing for Imports
  • Examples of Financial Master Data maintained
    within ACE
  • General Ledger SAP R/3 set up and maintained
    via Office of Finance
  • Funds Management SAP R/3 set up and maintained
    via Office of Finance
  • Accounts supporting financial transactions (i.e.
    Importer, Broker, Surety, etc.) SAP CRM set and
    maintained via Trade and Account Managers
  • Bonds SAP CRM value contracts maintained via
    Office of Finance, along with Surety / Importer /
    Broker relationship

64
Financial Processing for Imports
  • Designer Apparel verifies the entry summaries
    that will appear on the periodic statement of
    their duties, taxes, and fees for the imported
    goods from Hong Kong
  • Step 36 Based upon the payment terms submitted
    with the original entry summary (s), ACE will
    automatically generate the periodic statement on
    the requisite delivery date.
  • Step 37 The filer reviews the periodic
    statement(s) and provides ACH debit authorization
    for payment to be processed.
  • Step 38 Mellon Bank processes the ACH debit
    transaction.
  • Step 39 CBP clears Designer Apparels
    receivable in full for the ACH debit payment
    received

65
Relevant GBB Findings
  • Manage Finance

66
Manage Finance
  • Process Improvements
  • Refunds / Payments SAP to act as single source
    for all refunds / payments to the trade community
    for both check and EFT payments routed through
    Treasury
  • Bond Sufficiency real-time direct relationship
    between entry summary IR and associated bond
    sufficiency for given IR
  • Liquidate and Master File Extract / FOIA Requests
    manual process reduction and query development
    reduced with all requisite data stored within ACE

67
Manage Finance
  • CBP Issues Being Addressed
  • Assess bond sufficiency formula
  • Allowable participation for end-state periodic
    statement processing and / or other payment types
    beyond daily statements
  • Netting of receivables / refunds on same statement

68
Manage Finance
  • Business Benefits to the Trade Community
  • Periodic Monthly Statement
  • Increased monetary float
  • All inclusive (goal, pending policy change)
  • Reduced number of payments
  • Reduction of refund number not amount
  • Real-time check on bond sufficiency
  • Electronic Bond
  • Transparency of all receivable types to view
    amount due to CBP at any given time
  • Increased use of electronic funds transfers and
    report distribution
  • Description for each transaction on the
    statement. Each transaction uniquely identified.

69
Process Team Review
  • Step 40 ACE determines whether entry summary
    1987234113 (for the 4 containers) should be
    bypassed.
  • Step 41 Entry summary is scheduled to be
    liquidated a year from now
  • Step 42 Import Specialist George Curious has
    been doing an analysis of the Designer Apparel
    Inc. account. He runs a report with all the open
    entry summaries of Designer Apparel. The entry
    summary 1987234113 for the 4 containers is one of
    them. The Import Specialist requests an
    electronic version of the commercial invoice.
    The prices in the invoice are uncharacteristically
    low. The Import Specialist sends an electronic
    CF-28 requesting price lists, catalogs,
    confirmation of price paid, and other evidence of
    arms length transactions

70
Process Team Review
  • Step 43 George uses the tools available in BW
    (Business Warehouse) to do a trend analysis of
    Designer Apparel Inc. buying patterns and detects
    that their prices are lower than market value.
  • Step 44 George notifies the account via a CF-29
    that he is proposing to add to the appraised
    value of all the open entries of Designer
    Apparel, Inc.
  • The system automatically extends all Designer
    Apparel, Inc. open entries with the same
    characteristics.
  • Step 45 Designer Apparel Inc. provides further
    clarification but Import Specialist Curious is
    not satisfied

71
Process Team Review/Liquidation
  • Step 46 Import Specialist George Curious
    appraises the shipment adding 25,000.00 per line
    item. He inputs the corrected value once and
    mass recalculation of DTF occurs. Team review
    findings are captured on the entry summaries
  • Step 47 ACE calculates the additional duties
  • Step 48 ACE changes the status of the entry
    summaries to liquidated
  • Step 49 A liquidation notification is sent to
    the account and the surety

72
Process Protest
Protest Report
  • Step 50 As soon as the entry summaries are
    liquidated, Designer Apparel, Inc. files an
    electronic protest on all the entry summaries.
    The protest includes various data elements
    including the value the importer believes is the
    correct value. ACE uses those data elements to
    fill in the protest fields. The new e-protest
    will include all the data elements needed to
    process protests electronically.
  • Step 51 The protest includes additional value
    information not available when the entry summary
    was appraised.
  • Step 52 Import Specialist Curious reviews the
    additional information and agrees in part with
    the importer. He decides on a new value that is
    less than the appraised value he had originally
    decided but more than the entered value.

73
Process Protest
  • Step 53 The importer did not file for
    Application for Further Review so the protest
    does not have to go to Headquarters. He inputs
    the new value and uses workflow to route the
    protest to the Supervisory Import Specialist to
    approve. After approval, ACE calculates the new
    extended value and the new duties.
  • Step 54 A notification is sent to the protest
    filer and the surety

74
Financial Processing for Adjustments
  • Subsequent to Designer Apparel receiving positive
    acceptance of their protest submission, ACE will
    process the adjustment of duties.
  • Step 55 Based upon protest decision, an
    adjustment document is generated referencing the
    original 7501 submitted. A new bill is issued
    for the amended amount including interest.
  • Step 56 Since Designer Apparel pays via ACH
    debit, the payable due will be remitted as an ACH
    debit adjustment during the next statement / bill
    cycle.

75
Managing Compliance
  • Step 57 The CBP Account Manager for Designer
    Apparel, Julie Johnson, executes the compliance
    report for Designer Apparel.
  • Account Manager reviews the status of Designer
    Apparel, Inc.
  • Account Manager analyzes Designer Apparel, Inc.
    and runs compliance reports
  • Account Manager analyzes Designer Apparel, Inc.
    transactions
  • Step 58 Mark Porter at Designer Apparel, Inc. is
    notified by Julie that Designer Apparel is having
    classification problems.
  • Mark logs into ACE to view compliance report.
  • Mark researches Designer Apparel, Inc.
    transactions within ACE to investigate compliance
    issues.

Compliance
76
Managing Compliance
  • Step 59 Mark Porter works with the Account
    Manager to add an item to their Action Plan and
    the agreed upon action is placed within the
    Account information in ACE for visibility.

77
Designer Apparel Cargo for Export
  • Having successfully entered the merchandise into
    the commerce of the US, Designer Apparel is
    contacted by its London subsidiary and needs to
    ship silk fabric to England via an air shipment.
  • Step 60 Designer Apparel (USPPI) files an
    electronic Shippers Export Declaration (SED), the
    message is received, and the ITN number is
    issued.
  • Step 61 The USPPI delivers the cargo to Virgin
    Atlantic (Export Air Carrier). The export
    carrier files the cargo receipt message
    referencing the ITN number
  • Step 62 The ITN number of the cargo receipt is
    correlated to the ITN of the SED.

78
Designer Apparel Cargo for Export
  • Virgin Atlantic, having received the material
    from Designer Apparel, creates the export
    manifest.
  • Step 63 The carrier files the electronic export
    manifest.
  • Step 64 CBP provides permission to export for
    the cargo
  • Step 65 Virgin Atlantic files the clearance data
    with CBP. CBP provides permission to depart.
  • Step 66 Virgin Atlantic departs and the
    departure message is sent to CBP.

79
Drawback Claim
  • Designer Apparel files a drawback claim based on
    the export of cargo to England.
  • Step 67 The importer provides the necessary
    information on the drawback claim (referenced to
    the entry summary as well as the proof of
    export).
  • Note The classification of the goods on the
    import entry was 5007.10.60 and the
    classification of the exported goods was
    5007.10.60. The importer also provided the
    average duty per unit of the line item on the
    entry summary and the average duty per unit of
    the exported item determined by applying the duty
    rates on the designated entry summary to the
    value and quantity of the exported item
  • Step 68 The original entry exists and the
    monies are available.
  • Step 69 The drawback claim is approved and CBP
    issues the drawback to Designer Apparel.

80
Relevant GBB Findings
  • Manage Post Release

81
Manage Post Release
  • Process Improvements
  • Alignment of expertise across the country to
    address certain commodities entering the United
    States will allow for greater automation of
    workflow and a decrease in low value highly
    administrative tasks
  • Enhanced ability to verify calculation of Duties,
    Taxes, and Fees due to greater data integrity in
    Account and HTS management
  • Integration and automation between entry and
    receivables will minimize handling costs of the
    transaction and create the visibility of an
    accounts balance and integrity of the data

82
Manage Post Release
  • CBP Issues Being Addressed
  • ACE will enhance the paperless entry process.
    Filers will have the capability to forward
    electronic documents which will be associated
    with the entry document and forwarded for team
    review. Paper entries will still be accepted and
    processed similar to paperless entries
  • Reconciliation (types and flagging)
  • Quota Process Improvements
  • IASS link between reconfigured entry and release

83
Manage Post Release
  • Business Benefits to the Trade Community
  • Reduction of paper documents
  • Opportunity to stream line drawback processes
  • IASS monthly entry summary
  • Automation of Reconciliation by eliminating the
    spread sheet and the disks
  • Post Summary Correction
  • Reduce time on drawback process
  • Reduce time on protest process
  • Improved data accuracy for government agencies

84
Appendix
85
Glossary
  • BW (Business Information Warehouse) is SAPs
    data warehouse and business intelligence solution
    for reporting, decision support, analysis and
    data mining. It will enable CBP to access and
    analyze combined historical data from GTS, CRM,
    R/3 and non-SAP applications. Master data (like
    account, HTS, DTF) and transaction level data
    (entry/entry summary, authorized movements,
    quota, AD/CVD etc) will be extracted from the
    SAP solutions to provide both operational and
    analytical reporting to support the Cargo
    Management Lifecycle.
  • COTS Acronym for Commercial Off the Shelf
    product and is used to describe SAP.
  • CRM - (Customer Relationship Management) enables
    key processes in Account Management, Release, and
    Post Release. It incorporates CBPs integrated
    processes into CRM and will automate core
    business operations across all account touch
    points, for primary processes like Entry/Entry
    Summary, Quota, DTF (CRM Sales), Account
    Management (CRM Business Partners), Trend
    analysis (CRM Marketing), and Case Management,
    Verification (CRM Service).
  • DTF Duties, Taxes, and Fees
  • ERP Enterprise Resource Planning. A packaged
    system that offers a single interface for
    performing major company transactions.
  • GTS - (Global Trade Services) is an international
    trade compliance solution that provides import
    and export control functionality for screening
    legal responsibilities, business partners and
    trade documents. Key processes for GTS automation
    include processing the in bound manifest, entry
    and authorized movement documents. The
    correlation of trade data for checking for
    licenses, permits, certificates and integrated
    admissibility screening prior to release.
  • GUI Acronym for Graphical User Interface.

86
Glossary (continued)
  • HTS Harmonized Tariff Schedule
  • MID Manufacturer Identification number
  • mySAP Business Suite A series of packaged SAP
    modules and New Dimension Products developed by
    SAP.
  • New Dimension Products Series of products
    developed by SAP in the mid-Nineties.
  • Portal One entry point for various system
    applications including ERP systems as well as
    legacy systems.
  • R/3 - Enterprise handles Billing, Inventory
    Management and Finance. All of the SAP solutions
    listed above are born out of SAP R/3. Any sales
    document created in the GTS/CRM system will be
    replicated into R/3 so that process in Billing,
    Statement Processing, and Finance can be
    executed. Master data like Account Data will be
    replicated to R/3 while data like HTS and DTF
    will be maintained in R/3 and replicated to the
    appropriate systems real-time.
  • SAP Acronym for Systems, Applications, and
    Products in Data Processing. It is an enterprise
    resource planning (ERP) system.
  • Transaction Code Shortcuts that take you
    directly into the SAP R/3 screen that begins a
    particular transaction.
  • Workflow - Functionality of routing tasks and
    approvals through SAP.

87
Glossary (continued)
  • SAP Federal Clients
  • Bureau of Engraving Printing
  • DLA Defense Logistics Agency
  • DOD Department of Defense Enterprise Software
    Initiative
  • GSA General Services Administration
  • IRS Internal Revenue Service
  • NASA National Aeronautics and Space
    Administration
  • NAVAIR Naval Air Command
  • NAVSEA Naval Sea Systems Command
  • NAVSUP Naval Supply Command
  • NAVY Moral Welfare Recreation
  • Oakridge National Lab
  • Picatinny Arsenal
  • SPAWAR Space and Naval Warfare Command
  • SPR Strategic Petroleum Reserve
  • UNICOR Federal Prison Industries, Inc
  • U.S. Army (Logistics Modernization Project)
  • USGS U.S. Geological Survey

88
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