Global Business Blueprint (GBB)
Business Process Overview to the Trade Community
June 29, 2004
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Agenda
Opening Remarks …….…………………………………. 1:00 – 1:15
SAP Fundamentals… …………………………………… 1:15 – 1:45
GBB Approach.…………………………………………… 1:45 – 2:15
Break .……………………………………………………….2:15 – 2:30
GBB Results .………………………………………………2:30 – 5:00
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
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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.”
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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
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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
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SAP Fundamentals
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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.
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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”
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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
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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
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Data Organization in SAP
The fundamental
data framework
within the SAP
system
SAP’s static
informational and
processing/parameter
data
Hierarchy
SAP
Master Data
On-line tasks which
combine to form
integrated
business processes
Transactions
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Data Flow in SAP
Configure
System
Enter
Master
Data
Organization
Data
Master
Data
Material Master
(HTS, Schedule B)
Pricing (DTF,
Trade Agreements)
Customer Master
(All Account Types,
MIDs)
Equipment Master
(Conveyance)
Sales Orders (Entry/Entry
Enter
Transaction
Data
Summary,
Authorized Movements)
Transaction
Data
Sales Deal/Rebate
(Anti Dumping Case #)
Currency Conversions
Invoices (Statements,
Credit Memo)
Shipping Docs (Manifest, BOL)
Cross
Application
Components
Reporting, Workflow, Case Management, etc
* Configuration and Master Data must be set up to run
Business Transactions
* See Appendix for definitions
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SAP Components
CRM: Customer Relationship
Management
 Communication Tools
 Business Partner
SD: Sales & Distribution
 Sales Order
 Outbound Delivery
 Billing
 Foreign Trade
GTS: Global Trade Services
 Foreign Trade
 Sanction Party List
 Denied Party List
SCM: Supply Chain
Management
 Event Management
 Delivery Scheduling
 Demand Management
CRM
SD
SD
GTS
SCM
FI: Financial Accounting
 General Ledger
 Accounts Receivable
 Accounts Payable
 Special Ledgers
FI
SAP
R/3
MM
IS-PS
WF
MM: Material Management
 Procurement
 Inventory Management
 Foreign Trade
IS-PS: Industry Solutions for
the Public Sector
 Budgetary Ledger Postings
 Proprietary Ledger Postings
WF: Workflow
 Event Handling
 Task Notification
 Parallel Work
Routing
* See Appendix for definitions
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Questions
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Global Business Blueprint (GBB)
Approach & Results
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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
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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 subprocess 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”
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.
Create
Straw
Model
Review &
Refine
Model
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.
Conduct
Model
Integration
Reviews
Validate
Model w/
PGAs &
TSN
Confirm
Model #1
Complete
Gap
Analysis &
Develop
Model #2
March/April
February
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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 transactionalbased 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.
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GBB Results: Quick Facts
Business Process Flow Development
Total Workshops:
CBP Process:
TSN & PGA:
Other:
77
55
11
11
Port Visits:
4
Process Breakdown:
Level 2:
33
Level 3/4:
162
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
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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, PostSummary Corrections, Importer Activity Summary Statement
(IASS)
 Manage Post Release: Drawback
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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/validation not possible at level
presented
“It would be helpful to have agenda and information for discussion prior
to meeting so could do preparation”
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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
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Introduction to the Integrated CBP
Cargo Management Lifecycle
Process
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Integrated CBP Cargo Management
Lifecycle
End to End Process
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SAP Functional Scope
The following SAP Software Components have been initially
identified as necessary to enable the business process scope.
Account Relationship Management




Finance
CRM – Customer Relationship Management
SD – Sales & Distribution
GTS – Global Trade Services
EM – Event Manager
Release: Pre-Arrival Arrival





GTS – Global Trade Services
CRM – Customer Relationship Management
SD – Sales & Distribution
MM – Materials Management
EM – Event Manager
Post Release





FI – G/L – General Ledger
FI – A/R – Accounts Receivable
FI – FM – Funds Management
ISPS-CD- Public Sector Collections &
Disbursement
 Financial Reporting




BI – Reporting, Analysis


BW – Business Information Warehouse
R/3 - Reporting
SAP Technical
CRM – Customer Relationship Management
GTS – Global Trade Services
SD – Sales & Distribution
MM – Materials Management
EM – Event Manager

Enterprise Portal
* See Appendix for definitions
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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
(Gap: Manifest Processing)
Level of Technical Fit
Low ------------------------------------------------------------------------------------------------High
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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 MultiModal 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.
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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
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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.
Drawback
Export
Manifest
SED /
Cargo Receipt
Billing/
Liquidation/
Protest
Entry
Summary
Admissibility
\Release
Entry
Auth
Move
Import
Manifest
Account Management
ENFORCEMENT
F I N A N C E - REVENUE & COLLECTIONS
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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.
Drawback
Export
Manifest
SED /
Cargo Receipt
Billing/
Liquidation/
Protest
Entry
Summary
Admissibility
\Release
Entry
Auth
Move
Import
Manifest
Account Management
CRM
GTS
R/3
BW
ENFORCEMENT
SAP Systems
F I N A N C E - REVENUE & COLLECTIONS
Other Legacy and Touch Point Systems
Other Government Agency Systems
Office of Finance - SAP
Legal and Policy
* See Appendix for definitions
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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).
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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 SAP’s 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.
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Integrated CBP Cargo Management
Lifecycle
Incoming
Documents
GTS
E-Manifest
Key
Entry,
Functionality License,
Permits,
Certificates
Quota / Visa
HAZMATS
Release
Finance - OF
Other 3rd Party
Legacy
Legacy
Systems Viewpoint
R/3 Enterprise
CRM
Accounts
Account Mgmt
Case Mgmt
Protest
DTF
Billing
FI
Rebates
Tariff Rate Quota
Drawback
=
Data,
Transaction,
and Work Flows
Event Manager
•Business Warehouse
•Portal
* See Appendix for definitions
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Integration Scenario
This Transaction scenario depicts the “to be” end-toend process for importing and exporting goods into
and out of the commerce of the United States
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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.
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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 company’s principal officers and their contact
information
 the company’s fiscal year end date
 relationships to other business entities
 Agreed to the Terms and Conditions document
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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 Porter’s 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.
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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
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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
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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
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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
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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.
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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
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Relevant GBB Findings
Account Management
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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
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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
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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
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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
Information
manifest data via EDI
Available
Real Time
Report
 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 MultiModal 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.
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The Broker Files Transaction Data
Step 15 : Sara Comb at Hall
Brokerage, Designer Apparel,
Inc.’s Broker, enters the entry
transaction into the brokerage’s
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
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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
Real Time Report
Step 17: Following the successful correlation, ACE indicates two
containers require further review.
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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
Real Time Report
Real Time Report
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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)
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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.
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Release Processing of Cargo
The 2 previously identified containers are un-laden for
verification at the designated pier staging area.
Auth
Move
Status
Real Time Report
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.
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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.
Auth
Real Time Report
Move
Status
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
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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 (T&E) 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.
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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 (T&E) document is closed.
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Relevant GBB Findings
Manage Release
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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
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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
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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
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Financial Processing for Imports
Real Time Report
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.
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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
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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 Apparel’s receivable in full for the
ACH debit payment received
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Relevant GBB Findings
Manage Finance
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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
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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
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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.
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Process Team Review
Real Time Report
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
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Process Team Review
Real Time Report
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
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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
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Real Time Report
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.
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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
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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.
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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
Compliance
 Account Manager analyzes Designer Apparel, Inc.
transactions
Real Time
Report
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.
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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.
Real Time Report
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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.
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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.
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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.
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Relevant GBB Findings
Manage Post Release
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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
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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
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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
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Appendix
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Glossary
BW – (Business Information Warehouse) is SAP’s 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.
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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.
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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
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