Commissioner Bonner has established the following prioritized strategic goals for the next five-year period:
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.”
Opening Remarks CBP 2005-2009 Strategic Goals; Modernization Mission and Vision
E nterprise R esource P lanning 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.
Updates information immediately in the system as the data is saved
Provides direct access to current data and reports
Reduces operation costs
All transactions can be tracked to the person entering or changing data
Data entry in one module is immediately available in others
Eliminates duplication of data and increases data accuracy
Increases the coordination between departments
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)
NAVY Moral Welfare & Recreation
Oakridge National Lab
Strategic Petroleum Reserve
U.S. Army (LMP)
U.S. Geological Survey
SAP at CBP:
Office of Finance
Data Organization in SAP The fundamental data framework within the SAP system On-line tasks which combine to form integrated business processes Master Data Transactions Hierarchy SAP SAP’s static informational and processing/ parameter data
Data Flow in SAP * See Appendix for definitions Configure System Enter Transaction Data Cross Application Components * Configuration and Master Data must be set up to run Business Transactions Reporting, Workflow, Case Management, etc Enter Master Data Organization Data Master Data Transaction Data Material Master (HTS, Schedule B) Customer Master (All Account Types, MIDs) Pricing (DTF, Trade Agreements) Shipping Docs (Manifest, BOL) Sales Orders (Entry/Entry Summary, Authorized Movements) Invoices (Statements, Credit Memo) Sales Deal/Rebate (Anti Dumping Case #) Equipment Master (Conveyance) Currency Conversions
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
GBB: Approach 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” 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. 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. Create Straw Model Review & Refine Model Conduct Model Integration Reviews Validate Model w/ PGAs & TSN February March/April Where we ended up was understanding the integrated processes and “ how ” they will work in the future end state Complete Gap Analysis & Develop Model #2 Confirm Model #1
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
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.
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
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
Key Themes The solution framework we will be walking through today is focused on the following themes:
Integrated CBP Cargo Management Lifecycle 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. Process View Import Manifest Account Management ENFORCEMENT F I N A N C E - REVENUE & COLLECTIONS Entry Admissibility Release Entry Summary Billing/ Liquidation/ Protest SED / Cargo Receipt Export Manifest Drawback Auth Move
Integrated CBP Cargo Management Lifecycle Other Legacy and Touch Point Systems Other Government Agency Systems Office of Finance - SAP Legal and Policy During GBB, the team mapped the processes to SAP software components and identified interfaces to other required systems. Technical Enablers * See Appendix for definitions CRM GTS R/3 BW SAP Systems Import Manifest Account Management ENFORCEMENT F I N A N C E - REVENUE & COLLECTIONS Entry Admissibility Release Entry Summary Billing/ Liquidation/ Protest SED / Cargo Receipt Export Manifest Drawback Auth Move
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).
SAP Technical Enablers
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.
Integrated CBP Cargo Management Lifecycle Systems Viewpoint * See Appendix for definitions = Data, Transaction, and Work Flows R/3 Enterprise Incoming Documents CRM E-Manifest Entry, License, Permits, Certificates Quota / Visa HAZMATS Release Accounts Account Mgmt Case Mgmt Protest DTF FI Event Manager Legacy Other 3 rd Party Key Functionality GTS Legacy Finance - OF Billing Rebates Tariff Rate Quota Drawback
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
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.
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
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
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
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
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
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
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.
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.
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
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
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.
Step 53: The importer did not file for A pplication for F urther R eview 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
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.
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
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
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 C ommercial O ff t he S helf 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 offer s 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.
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.