SOW_-_Executive_Overview_(EXS)_Cargo_Systems.pdf

Cargo Systems Executive Overview

U.S. Customs and Border Protection

January 31, 2013

Version 1.0

Customs and Border Protection (CBP)

Cargo Systems Program Management Office (PMO)

Submitted by:

Brenda B. Smith

Executive Director (Acting)

ACE Business Office

Office of International Trade

Date

Endorsed by:

Sara Schroerlucke

ACE Program Manager

Cargo Systems Program Office

Office of Information and Technology

Date

Endorsed by:

Phil A. Landfried

Executive Director (Acting)

Cargo Systems Program Office

Office of Information and Technology

Date

Table of Contents

1.0 Revision Summary

2.0 References

3.0 Purpose and Background

3.1 The Path to Modernization and Automation

3.2 ACE Status and Capabilities

4.0 Strategy for Future Development

4.1 Agile Methodology

4.2 Cargo Processing Capabilities To Be Delivered

Appendix A – Glossary of Terms

Appendix B – ACE Functionality Released To-Date

1.0 Revision Summary

Revision

Number

Date of

Change

Section(s)

Affected

Brief Description of Change

1.0 1/31/13 All Original submission to Executive Steering

Committee

2.0 References

Cargo Systems Governance Model

ACE Executive Steering Committee (ESC) Charter

Cargo Systems Product Management Committee (PMC) Charter

Cargo System Program Oversight Plan (POP)

Agile Methodologies in DHS: Agile Working Group White Paper

DHS Acquisition Directive 102-01

3.0 Purpose and Background

At the heart of the U.S. Customs and Border Protection (CBP) agency mission is its dual responsibility to protect the physical and economic security of the United States. In order to carry out its mission, the agency is continually focused on initiatives to modernize international trade facilitation processes to reduce the cost of doing business, strengthen economic competitiveness and enhance cargo safety and security. Cargo processing is therefore a fundamental, supporting business function of the agency.

This Cargo Systems Executive Overview is intended to provide historical and reference information concerning the IT systems that make up the Cargo Systems Program Office portfolio. Information such as program background and history, product releases to-date and general reference information can be found and maintained in this source document rather than repeated in each management document.

For purposes of this document, some high-level terms need to be defined:

“Cargo Processing” refers to the end-to-end processing performed by CBP with respect to trading commodities (cargo) that arrive in the United States from, or depart the United States for, other nations.

“Cargo Systems” refers to the data processing systems used by CBP to process cargo imports and exports and includes the Automated Commercial Environment (ACE), the Automated

Commercial System (ACS), the Automated Export System (AES), the Cargo Processing capabilities developed in the Automated Targeting System (ATS), and all their subsystems and interfaces, to the extent these systems, subsystems, and interfaces perform or support the performance of cargo processing.

Appendix A provides a glossary of other business and technology terms used in the cargo systems and cargo processing contexts.

3.1 The Path to Modernization and Automation

CBP Modernization efforts began in the early 1980’s, when CBP and the trade community sought to automate what was an entirely manual, paper-based process. The Automated

Commercial System (ACS), still in use today, was the product of that effort. By the 1990’s, CBP and the trade community recognized the need to modernize again as technology had made significant advances. At the same time, it was recognized that any modernization effort should include revamping trade processes, since some trade policies and procedures were over 100 years old at that time. The Customs Modernization Act of 1993 was passed to give CBP the authority to move ahead with modernization and automation of CBP processes and technology, and was the genesis for the ACE program.

3.2 ACE Status and Capabilities

The ACE system has been the focus of cargo processing modernization since 2001. Deployed

ACE capabilities modernize and enhance some elements of cargo processing with features that will consolidate and automate border processing and will ultimately replace ACS, the system performing many cargo processing functions today. ACE also facilitates the automated screening and targeting (performed by CBP’s Automated Targeting System) of inbound and outbound cargo across the borders of the United States. ACE provides for the collection of additional trade information to improve identification of high risk cargo while also expediting entry of lawful trade that is considered low risk.

The SAFE Port Act of 2006 directed that all agencies requiring documentation for clearing or licensing the importation and exportation of cargo participate in an interagency initiative to establish a single portal system known as the International Trade Data System (ITDS). ITDS is an initiative through which the data needs of over 40 agencies will be consolidated and made available through a single, shared access point. ACE is intended to facilitate the collection and distribution of standard electronic import and export data required by all Federal agencies participating in ITDS.

CBP has modernized key elements of the cargo processing process with key ACE functionality such as (See Appendix B for a full list of delivered ACE functionality):

The Secure Data Portal, providing online, free access to data previously only available to

CBP and enabling account-based vs. transaction by transaction processing.

Periodic Monthly Statement, providing the capability to migrate from daily payments to interest-free monthly payments.

Electronic truck, rail and sea manifest which provides shipment information to CBP Officers, enabling them to assess cargo safety and determine if further examination is required.

Entry summary processing for the most common entry types including post summary corrections, enabling CBP to assess duties, collect import statistics and validate trade compliance.

The Simplified Entry pilot, the first phase of Cargo Release to be modernized, is presently being expanded regionally to U.S. airports.

In fiscal year (FY) 2012, at the expected end of its 10 year development effort, the program transitioned as planned into its operations and maintenance phase, with no funding for additional development. However, much functionality remains to be delivered. CBP recognizes that incorporating additional functionality is necessary to achieve broad participation from stakeholders. CBP, working with stakeholders, has developed and will continue to develop business cases for remaining functionality in order to secure the additional funding needed to modernize the information system platforms that support cargo processing.

As CBP looks to the future, the agency is committed to delivering more functionality to users as quickly as possible. CBP is developing a strategy for using an Agile software development methodology, an iterative and incremental approach to product development, to complete the agency’s trade modernization vision.

4.0 Strategy for Future Development

Preferred approaches to addressing large-scale IT modernization needs have shifted in recent years from large multi-year development projects to more flexible methodologies that allow software to be developed and delivered in smaller batches over time. When ACE began, capabilities were developed in large suites that took years to build, test and deploy. This method required long wait times for capabilities to reach users and made it more difficult to accommodate changes in the software requirements. As the program has progressed, CBP has looked for new ways to more quickly and efficiently develop functionality and deliver needed capabilities to users.

4.1 Agile Methodology

The Office of Management and Budget has encouraged Federal agencies to adopt modular information technology development and acquisition approaches to improve investment manageability, reduce overall risk, and support rapid delivery of incremental new functionality.

In support of that, CBP is building a strategy for using an Agile development methodology to complete cargo processing modernization.

Agile is an iterative and incremental approach to software development performed in a highly collaborative manner within an effective governance framework. Agile best practices include:

Developing software in “sprints,” or 1-4 week cycles that result in the production of functioning, useable code;

Focusing on smaller releases so that valuable functionality is delivered to users more frequently;

Integrating testing requirements into the development “sprint” so that software quality issues are discovered and resolved as early and quickly as possible;

Ensuring development teams are cross-functional, so that business subject matter experts, software testers and software developers are working side-by-side as functionality is built;

Working from a prioritized list of requirements (called the Prioritized Product Backlog) that is continuously evaluated to ensure that the most crucial requirements are dealt with first; and

Using a continuous improvement model in which processes and capabilities are evaluated and lessons learned incorporated throughout the process.

Agile Releases are made up of multiple sprints. Planning for Agile releases determines what will be built in each sprint. Agile Release Planning is based on the following principles:

1. Review and refine goals, objectives and scope, define charter

2. Brainstorm options, develop rough estimates of effort, skills, impact

3. Define backlog through stories, maps, storyboards, and then prioritize

4. Analyze requirements

5. Design/Architect release

6. Incrementally build plan, baseline, and review with key stakeholders

7. Continuous feedback/lessons learned

4.2 Cargo Processing Capabilities To Be Delivered

CBP recognizes that additional core functionality must be delivered to achieve broad trade community endorsement and use of ACE. Until remaining core functionality is modernized, CBP and the trade community will continue to operate in multiple systems leading to increased costs and multiple inefficiencies. CBP defines “core” ACE functionality as that which will enable (1) full and complete cargo processing in ACE and (2) decommissioning of the

Automated Commercial System (ACS). The following capabilities remain to be modernized.

Air Manifest

Air Manifest will integrate the final mode of transport into a modern processing platform.

(Truck, rail and sea manifest are presently incorporated into one data processing platform).

o Integration will result in reduced redundancies and increased efficiencies and effectiveness for CBP personnel.

o Enable the retirement of the legacy manifest system in ACS.

Cargo Release

Modernization of the Cargo Release process will enhance the ability of CBP and

Participating Government Agencies (PGAs) to evaluate the security, safety and compliance of imported products while also speeding the release of legitimate cargo into the commerce of the United States.

o Simplified Entry (SE) is the first phase of Cargo Release being developed; CBP will continue to build upon the success of simplified entry to achieve full Cargo Release capability.

ITDS initiatives will continue to be implemented as part of Cargo Release and will support

CBP’s vision to make an import/export data processing “single window” for the trade community. These ITDS initiatives will automate and enhance interaction between Trade

Partners, CBP, and PGAs by facilitating electronic collection, processing, sharing, and review of trade data and documents required by Federal agencies during the cargo importation and release process.

Additional components will continue to be built until all Cargo Release functionality is integrated in one processing platform/system to:

o Provide the government and international trade community with a more automated and modern process that reduces redundant data requirements, removes paper and provides for expedited decisions by Federal agencies.

o Allow for full and integrated import processing, significantly enhancing business and government efficiencies, thereby, promoting economic competitiveness for the international trade community.

Entry Summary

Entry Summary Edits will provide the addition of 24 categories of system “edits” or checks o Will provide more accurate data based on system validations.

o Will reinforce trade compliance and further ensure that CBP can properly assess duties, taxes, and fees.

Remaining Entry Summaries will provide for integration of all entry summary types to be filed and processed in one system.

o Will allow CBP and the trade community to process in single system, reducing redundant processes and costs, increasing efficiencies and enabling better predictability for CBP and the trade community.

Drawback, Reconciliation and Liquidation will allow for modernized processes for trade users to submit and for CBP to process downstream adjustments and finalizations of importer liability.

o Will provide nationwide visibility and enable account-based processing.

Exports

Integration of export capabilities in ACE will modernize the transportation module of the

Automated Export System (AES) and incorporate the transportation component into the ACE

Multi-Modal environment.

o Promotes President’s National Export Initiative (NEI).

o Will enable compliance with 2002 Trade Act, requiring advanced, electronic submission of export data.

o Will improve targeting for high risk exports prior to departure based on new electronic availability of manifest data.

Finance

Development and integration of CBP’s finance capabilities with the agency’s core financial system including accounts receivable, collections, and refunds that support accounts revenue will:

o Allow CBP to produce its annual financial statement directly out of the general ledger.

o Modernize entire financial processes for CBP which are nearly 30 years old, allowing

CBP to effectively communicate with business, reducing redundancies and allowing for a higher collection rate.

Appendix A – Glossary of Terms

Term Definition

Abandoned Merchandise Any entered or unentered merchandise which remains in CBP custody for 6 months from the date of importation, or a lesser period for special merchandise, and without all estimated duties and storage or other charges having been paid, shall be considered unclaimed and abandoned.

Absolute Quota A type of quota that permits a limited number of units of a specified commodity to be entered for consumption during a specified period. Once the specified quantity is reached (filled) no further imports of that commodity are permitted during that specific period.

Accelerated Drawback A capability provided to designate a filer as entitled to immediate payment for a drawback claim. When the review of the drawback claim is completed/finalized, the payment is adjusted if necessary (bill or refund).

Account Manager (Trade Account)

A CBP employee assigned as a point-of-contact for a particular trade account, responsible for supporting interactions between CBP and that trade account.

Account Privileges (Trade Account)

Data pertaining to a set of default access that is provided when the account is first set up. When the account owner supplies a minimum amount of data required, they will be granted full access to view the account data except that which is against CBP policy to disclose. The account owner will have the ability to grant access to its account to other accounts users or holders.

Account Profile (Trade Account)

Aggregation of data pertaining to an account’s performance in all phases of its activities with CBP. Examples include, compliance issues relating to import or export transactions, compliance with rules and regulations (positive or negative), payment history, etc. This information will be used to evaluate the account’s risk of potential non-compliance.

Accounting Line Item In revenue, unless otherwise stated, line item refers to a line of accounting information.

Action An action imposed on merchandise by CBP, including but not limited to, clear, seize, release under bond, destroy, refuse, or refer for investigation.

Ad Valorem Rate of Duty A duty that is assessed as a percentage of value of the merchandise (e.g., 5% ad valorem).

Administrative Forfeiture An agency may administratively, without judicial process, appropriate personal and tangible property valued at $500,000 or less.

Admissibility A determination of the acceptability of a commodity being permitted to enter the U.S.

Agency Any department, agency, commission, authority, administration, board, or other independent establishment in the executive branch of the Government, including any corporation wholly or partly owned by the U.S. that is an independent instrumentality of the U.S., not including the municipal government of the District of Columbia.

Agile A conceptual framework for undertaking software projects.

Agile methods are a family of development processes, not a single approach to software development.

Air Waybill A negotiable instrument that allows a carrier to transport merchandise from a shipper to a consignee via air. It contains, at a minimum, the description and value of the commodities being shipped, flight information, and the identification of the shipper and consignee.

Analytical Data Aggregate data used for analytical purposes.

Annual Value of Services Value, either earned or lost, reported in thousands of dollars on an accrual basis over one year.

Anti-Dumping (AD) A duty assessed by CBP on particular commodities being imported to counter, limit, or eliminate the threat of foreign goods subsidized by the manufacturer being introduced into the commerce of the U.S. at below fair market value.

Antidumping/ Countervailing duty (AD/CVD) Case

Investigation initiated by the Department of Commerce on a product alleged to be imported into the U.S. in contravention of dumping and/or countervailing duty laws.

Appraised Value or Appraised Domestic Value

The domestic value of property as defined in Section 162.43 of the CBP Regulations—the price at which the property or similar property is freely offered for sale in the ordinary course of trade at the time and place of the appraisal. Merchandise seized in large quantities is appraised at the wholesale level;

merchandise seized at the retail level is appraised at the retail level (see also Fair Market Value)

Acquisition Decision Event

(ADE)

A predetermined point within the acquisition lifecycle phases at which the investment will undergo a review prior to commencement of the next phase.

Acquisition Program Baseline (APB)

The APB establishes the project’s performance requirements, schedule requirements, and estimate of total acquisition cost.

APB parameter values shall represent the project as it is expected to be produced or deployed. In the case of an evolutionary acquisition strategy, the APB shall include parameters for the next phase and, if known, for follow-on phases. The APB will contain parameters that, if not met, will require the IRB to reevaluate the project and consider alternative project concepts or design approaches.

Arrival The act of a conveyance or merchandise coming to rest within the confines of a port.

Arrival Message Data transmitted by the carrier at the time of arrival at a U.S.

port to notify CBP and PGAs that a conveyance has arrived.

The message indicates the Trip Number, date and time, arrival port, and carrier ID.

Arrival Notification A message to CBP from a shipper or carrier indicating the estimated time of arrival of a conveyance.

Arrival of Conveyance The act of a conveyance coming to rest within the confines of a port.

Arrival of Vessel The time when a vessel first comes to rest, whether at anchor or at a dock, in any harbor within the CBP territory of the U.S.

Attorney A person legally appointed by another to act as his or her agent in the transaction of business, specifically one qualified and licensed to act for plaintiffs and defendants in legal proceedings.

Audit A CBP process involving the examination of current and previous import and export documentation to determine level of compliance with laws and regulations.

Authorization to Move The approval by CBP to allow goods to be transported from one CBP port to another under bond. (see In-Bond)

Authorized Data Extract A report that can be generated through the ACE Secure Data Portal and allows users to download and export up to large amounts of account (more than 65,000 lines of data).

Authorized User A person with a unique user ID and password, who is granted access to data based on specific access privileges granted through their system account.

Auto Liquidation A CBP process that will automatically liquidate an import transaction after a set period of time, if no actions are pending that would prevent its liquidation.

Automated Broker Interface (ABI)

The Automated Broker Interface (ABI) permits qualified participants to electronically file required import data with CBP. ABI is a voluntary program available to brokers, importers, carriers, port authorities, and independent service centers. Currently, over 99of all entries filed with CBP are filed through ABI.

Automated Clearinghouse (ACH) Credit

Payment method where the payer initiates payment through its financial institution. The financial institution electronically transmits the payment through the ACH/Federal Reserve network to the CBP account maintained by the Department of the Treasury.

Automated Clearinghouse (ACH) Debit

Payment method where the payer transmits payment authorization to CBP, and CBP sends the payment information through the network to the payer's financial institution.

Automated Commercial Environment (ACE)

ACE is a multi-year project to modernize the business processes essential to securing U.S. borders, speeding the flow of legitimate shipments, and targeting illicit goods. ACE will result in an integrated modernized system that will replace legacy trade processing systems.

Automated Commercial Environment (ACE) Secure Data Portal

The on-line access point through which authorized users can access the ACE. Essentially a guided user interface that allows users to login to ACE to view reports, track data and complete transactions.

Automated Commercial System (ACS)

ACS is the legacy system used by CBP to track, control, and process all commercial goods imported into the United States. ACS interfaces with participating government agencies (PGAs) to electronically transfer data on import transactions.

Automated Export System

(AES)

The Automated Export System (AES) is the electronic way to file the Shipper's Export Declaration (SED) and ocean manifest information directly to U.S. Customs and Border Protection (CBP). It is the central point through which export shipment data required by multiple agencies is filed electronically to CBP, using the efficiencies of Electronic Data Interchange (EDI).

Automated Manifest System (AMS)

AMS is the legacy system through which CBP processes incoming manifests. (see also Manifest, e-Manifest) As of September 29, 2012 ACE became the system of record for all rail and sea manifest transactions. Air shipments are still processed in AMS.

Automated Targeting System (ATS)

ATS is the state-of-the-art Intranet-based enforcement and decision support tool that is the cornerstone of all CBP targeting efforts.

Bank A financial institution that by prior arrangement with CBP, handles its accounts (e.g. Mellon Bank, Riggs Bank) or banks that are contracted to upload financial transactions.

Basis of Appraisement The basis on which the value of a commodity is determined.

Allowable bases are: Transaction Value, Transaction Value of Identical or Similar Merchandise, Deductive Value, Computed Value and Other.

Bill of Lading A negotiable instrument that allows a carrier to transport merchandise from a shipper to a consignee via a mode of transportation (air, truck, etc). Bill of Lading numbers are used to identify shipments from a manifest. (Same as Air Waybill)

Blanket Flag A capability provided to designate all entries for an Account as approved for Reconciliation. An Account must be a participant in Reconciliation processing.

Bond (CBP Bond) A contract between a principal and a surety, which is required to protect the revenue owed to CBP or to assure compliance with a pertinent law, regulation or instruction. It employs one universal document, CBP Form 301 (see Single Bond, Continuous Bond).

Broker (Customs House Broker)

An individual or firm licensed by CBP to act as an agent for others in the transaction of CBP business.

Bonds - GENERAL TERM –

1. Normally obtained by importers who have a large number of entries and/or import through several ports of entry annually.

2. Covers all shipments for a period of one year.

3. Covers importations at any port of entry.

4. In the amount of $100,000 or more (in multiples of $100,000).

5. Covers most types of entries, including consumption, warehouse, TIB and special permits for immediate delivery.

Bond – Immediate Delivery and Consumption Entry Bond – Single Entry

1. Normally obtained by importers with a one-time shipment or with very few shipments over the course of a year.

2. Covers only the entry for which it is written.

3. In an amount equal to the value of the merchandise plus the estimated duties and taxes.

4. Covers only consumption entries and special permits for immediate delivery (it does not cover warehouse or T.I.B.

entries

Bond – Immediate Delivery And Consumption Entry Bond (Term)

1. Normally obtained by importers expecting repetitive shipments through one port of entry.

2. Covers all shipments for a period of one year.

3. Covers importations at one port of entry.

4. In the amount of $10,000 or more.

5. Covers only consumption entries and special permits for immediate delivery.

Bond Liability The coverage amount on a specific bond for importation expenses.

Bond Sufficiency The CBP process of determining whether a trade account has a CBP-approved bond sufficient to cover any potential duties, fees, taxes associated with that account’s transactions for a specified period of time.

Bond Type The kind of bond obtained from the surety – single or continuous.

Bonded Warehouse A warehouse authorized by CBP for storage of goods on which payment of duties is deferred until the goods are removed.

Bond – Warehouse Entry Bond

1. Required for a warehouse entry if importer does not have a general term bond.

2. Covers only the entry for which it is written.

3. In an amount equal to the sum of double the estimated duties (including any taxes required by law to be treated as duties) plus the estimated amount of any other taxes collectible by CBP.

Border Coordination Initiative (BCI)

A plan jointly developed by CBP and INS for increased cooperation to enhance drug interdiction on the nation’s southwest border by building a border management system that would result in seamless processes among land border ports of entry.

Broker (Customs Broker) A private individual or company who, under license from CBP, aids importers and who is able to act on their behalf in transacting business with CBP.

Broker Download Broker Download allows a carrier to send a copy of the shipment record to the entry filer via the Automated Broker Interface (ABI).

Business Activity Log

(BAL)

An auditable record of business activities that occur between CBP and a trade account. Formerly known as the Significant Activity Log.

Business Information Data used by CBP for reference purposes in the processing of import and export transactions.

Bulk Cargo Commodities such as ore, coal, wheat, oil, etc., which are normally transported in bulk. In this transportation mode, the ship itself is the container.

Bunkers Space aboard vessels used for storage of fuel used for propulsion purposes; the term also refers to the oil, coal, water or other type fuel used for this purpose; “bunkering” is taking on fuel.

Burndown Chart A burndown chart is a visual tool for measuring and displaying progress. Visually, a burndown chart is simply a line chart representing remaining work over time. Burndown charts are used to measure the progress of an agile project at both an iteration and project level.

Business Value Add Business value add is anything the business judges as required to improve the effectiveness and efficiency of the work as well as any work required to remain legal and viable as a business entity.

Buyer Person or persons purchasing seized General Order (GO) merchandise at a sale or auction conducted on behalf of

CBP.

Purchaser of merchandise being imported or exported.

Bypass The situation in which entry summary data will not receive a team review. (see Team Review)

Cargo All commercially carried material offered for entry into the United States except baggage in the possession of an arriving passenger.

A cargo area, which is separate from passengers and their baggage, is an area where freight is stored in CBP custody until released.

The goods, merchandise, or commodities being imported or exported.

Cargo Release Delivery authorized by CBP permitting merchandise to enter the commerce of the United States.

Cargo Selectivity A module of ACS concerned with the establishment of criteria for the examination and the release of cargo shipments.

Cargo Theft

The illegal removal of goods (most commonly electronics, food products, pharmaceuticals, clothing, and household appliances) under the custody of CBP. Such theft from CBP is a felony.

Cargo Tracking The CBP process of maintaining knowledge of the location and description of cargo shipments. The process includes the authorization for cargo and conveyance movements within, and between, ports, and the authorization to remove cargo from a port.

Caribbean Basin Initiative A trade program enacted by the U.S. to provide for the duty-free entry of certain merchandise from designated beneficiary countries or territories in the Caribbean Basin.

Carnet An internationally recognized document, issued by a Chamber of Commerce, which may be used for the temporary, duty-free importation and exportation of certain goods. The carnet shall serve as an entry document and as a bond for the performance of acts in compliance with the provisions of such Convention or Agreement and the CBP statutes and regulations which are involved.

Carrier A business entity that moves freight (cargo) for compensation, for example, truck lines, airline, steamship co., and railroad. A transporter of merchandise and/or passengers.

Cash Receipt A receipt of payment made to CBP.

CASHLINK A Treasury system used to manage and monitor the collection of Government revenues and report the balances to Federal agencies.

CBP Officer The Officer’s primary responsibility is to detect and prevent terrorists and weapons of mass destruction from entering the United States, while facilitating the orderly flow of legitimate trade and travelers

CBP Station A place, other than a port of entry, at which CBP officers are stationed for the purpose of entering and clearing carriers, accepting entries of merchandise, collecting duties and enforcing the various provisions of the CBP laws.

CBP Supervision Any action or thing required to be done or maintained under the supervision of CBP officers, which may be directed by continuous or by occasional verification. This may be required by regulations of the Secretary of the Treasury, or in the absence of such regulations for a particular case, as the principal CBP officer concerned shall direct.

CBP Territory of the United States

The 50 States, District of Columbia and Commonwealth of Puerto Rico.

CBP Custody The condition of merchandise being under the control of CBP.

Custody may be either physical or constructive possession.

CBP Form A form issued by CBP and approved by OMB whose use is mandated by CBP.

CBP Inspector [Old/pre-DHS] An officer that enforces the laws of the U.S.;

processes persons, baggage, cargo and mail as well as administer certain navigation laws. They assess and collect CBP duties, excise taxes, fees and penalties levied on imported merchandise.

CBP Mail Facility A CBP facility, usually co-located on the same premise as a U.S. Postal facility, where all international mail shipments are delivered by the U.S. Postal Service to CBP for inspection and release.

CBP Modernization Act Title VI of NAFTA Implementation Act, Public Law 103-182, December 8, 1993 legislation. This legislation is the primary business driver and legal foundation for CBP Modernization efforts. It mandates business improvements grounded in the concepts of informed compliance, shared responsibility, and reasonable care.

Census Edits A series of edits and validations that detect erroneous or questionable import/export transaction data by checking relationships between reported data elements for consistent and reasonable values, using criteria set by the Census Bureau. Census edit failures are referred back to the filers for data verification.

Census Reject An entry summary that does not meet Census edit criteria for reporting the entry summary information to Census.

Census Warning A Census warning results when entry summary data (such as gross shipping weight, quantity, or value) falls outside of pre-existing limits established by the Census Bureau. If a Census warning is received, the filer must review the entry summary data and determine a course of action to resolve the Census warning. Census warnings do not always mean an entry summary is in error, just that the information given is unlikely to be true.

Census Warning Override The Census Warning Override transaction provides Automated Commercial Environment (ACE) Automated Broker Interface (ABI) filers the capability to submit a Census Warning “Override” code if warranted upon receipt of Census warnings. For ACE entry summaries, filers also have the ability to proactively override a Census Warning.

Certificate of Manufacture A document certifying that the individual or company signing the document is the actual manufacturer of the goods.

Certificate of Origin A statement signed by the foreign seller or shipper of merchandise that attests to the origin, place of manufacture, growth, etc. of the merchandise being imported.

Certificate of Origin

(NAFTA)

A trilaterally agreed upon form completed by an exporter, producer or manufacturer that is used by Canada, Mexico, and the U.S. to certify that goods qualify for the preferential tariff treatment accorded by the North American Free Trade Agreement (NAFTA).

Chain of Custody A document (CF 6051) showing the handling history of seized or detained merchandise, including the current custodian.

Change Request (CR) A request submitted to a project’s change control board to document and request an improvement or enhancement to existing functionality that has been developed and deployed.

Chicken A term used in agile development for someone who is not on the sprint development team, but may still, at some point in the process provide input into the development. This person is not a dedicated member of the team.

Civil Forfeiture The Judicial forfeiture conducted against the property in civil proceedings.

Claim A legal right that a party-in-interest has with respect to a particular incident item held by CBP (e.g., a lien, moiety, or asset share).

Claim and Cost Bond Bond required when a violator elects to have a case removed from the administrative forfeiture process and placed in Federal court.

Claimant Individuals who post claims against property items.

SEACATS tracks these claims (which may or may not be paid), including liens; Federal, state, and local taxes; and fiscal claims from parties-in-interest.

Classification The tariff number from the Harmonized Tariff Schedule that legally describes the merchandise being imported in order to arrive at the appropriate rate of duty.

The CBP process of associating the merchandise with a Tariff number.

Clean Bill of Lading Document of receipt by a carrier when the goods are received in good order.

Client Representative A CBP employee responsible for providing support to the Trade Community regarding the usage of automated CBP processes and electronic interfaces.

Close Out (a debt) An event that occurs concurrently with, or subsequent to, an agency decision to write-off a debt for which the agency has determined that future additional collection attempts would be futile.

Closed Bill of Lading A bill of lading that has had action (entries, in-bond movements, etc.) posted against it, account for the entire quantity declared, has no active holds, and requires no further action by CBP or any other party.

Closed Manifest A manifest in which all of the bills of lading are closed.

Coastwise Trade Trade between two U.S. ports; a vessel is said to go coastwise when it moves from one U.S. port to another.

Code of Federal Regulations (CFR)

Regulations promulgated by the Secretary of DHS, for example, to implement laws enacted by Congress. Same as CBP Regulations.

Collateral Real or personal property pledged as part or full security on a debt.

Collection Port A port designated to receive, process, and deposit collections of duties, taxes, etc., owed by the importer for cargo imported into the U.S.

Collections Monies owed to CBP that are collected via various payment methods.

Commerce International trade, relating to the importation of foreign merchandise into the United States and exportation of American goods abroad.

Commercial Importation The importation of merchandise into the commerce of the United States for business purposes and not for personal use.

Commercial Invoice An invoice signed by the seller or shipper, or his agent, which is acceptable for CBP purposes if it is prepared in accordance with Section 141.86, CBP Regulation, and in the manner customary for a commercial transaction involving goods of the kind covered by the invoice.

Commercial Truck Fee The sum paid by the driver or other person in charge of a commercial truck or truck cab entering the CBP territory of the U.S. upon arrival at a port of entry for the services provided.

Commercially Interchangeable

Being of such nature of kind as to be commercially interchangeable (exchangeable or replaceable) for another of like nature or kind.

Commingling The packing together of different articles such that the quantity, quality or value of each class of articles cannot be readily ascertained without physically segregating the articles in the package.

Commitment The amount of allotment or sub-allotment committed in anticipation of an obligation.

Commodity An item capable of yielding commercial advantages, whose movement, import, export, or storage is of interest to CBP.

(see Cargo)

Commodity Data Information specific to the cargo shipment for import or export. Data included supports Entry and Entry Summary, Release, Reconciliation, Export, Export Transaction Closeout, and Drawback processing.

Common Carrier A person or company in the business of transporting goods or persons for a fee.

Common Commodity Classification Bar Code (C- 4)

A 14-character code which identifies the shipper/manufacturer, importer of record, the entry filer and the type of commodity in an import transaction.

Compliance (Trade Compliance)

Acting in accordance with all appropriate U.S. laws, regulations, policies, and procedures.

Compliance Measurement Statistical methodology composed of sampling techniques used to determine levels of compliance with U.S. and CBP laws and regulations measurable at ports of entry.

Compliance Measurements may occur at the industry or commodity level, or may be tailored for a specific account or specific trade issue.

Compound Rate of Duty A duty assessed as a combination of both an ad valorem rate and a specific rate. (e.g. 10 percent ad valorem plus 0.7 cents per kilo).

Computed Value The value of merchandise based on the sum of the cost or value of the materials and the fabrication and other processing, and an amount for profit and general expenses, assists and packing costs.

Confidential Informant An individual who provides a tip or information.

Consign To send or deliver goods to be sold or otherwise disposed of.

Consignee A person or firm authorized to take delivery of imported merchandise. This is the U.S. party for whom the merchandise was purchased, if other than the buyer and if known at the time of importation. Sometimes referred to as “ultimate consignee”.

Person, party, or designee on the export documentation who is located abroad and actually receives the export shipment.

Consignment Assignment of property to the seizing agent or to an outside contractor for maintenance and/or disposition.

Consist Term used to mean “packaging a train together.” It becomes a listing of the train cars, in order.

Consolidated Shipment The situation in which a conveyance carries multiple cargo shipments on one or more bills of lading (or sub/house bill of lading). (see Shipment)

Consolidator The party responsible for packing or consolidating the cargo for final destination.

Constructive Seizure A seizure in which the enforcement agency does not take physical possession of the property, usually because its size (e.g., a warehouse of goods). Appropriate signs are posted on the property, which is safeguarded and maintained by the seized property contractor.

Consumption Entry A formal entry that allows for the release of merchandise into the commerce of the U.S.

Container (Cargo) A pre-assembled unit for shipping merchandise, such as a lift van, cargo container, tank, etc., which may be designated by the Commissioner of CBP as an Instrument of International Traffic (10.41a CR).

Contiguous Country A country adjacent to the United States and not separated by the high seas (Canada or Mexico).

Contingency Planning Contingency planning: Planning for the in-place recovery of component failures that impact a position of the computing capability of the NDC.

Continuity of Operations See contingency planning.

Continuous Bond A bond that covers multiple transactions over a specified time period, regardless of port of entry. (see Bond)

Contraband Merchandise which may not be lawfully imported or exported;

smuggled merchandise or controlled substances.

Contract A legal agreement between two or more parties for goods or services.

Controlled Delivery A seizure in which the enforcement agency has knowledge of, and visual control over, the physical property, and allows it to continue to its final destination. The final consignee has no knowledge of the agency’s intervention.

Controlled Substance Any narcotic, depressant, stimulant, hallucinogenic drug, or any other drug or substance that through law, international treaty, convention, or protocol, is to be controlled by the U.S.

Merchandise that may not lawfully be imported/ exported.

Smuggled merchandise or controlled substances as indicated under the Controlled Substances Act.

Convertible Currency A currency that can be bought and sold for other currencies at will.

Conveyance A vehicle, vessel, aircraft, or other mode of transportation that is able to transport cargo.

Conveyance Country The country issuing the conveyance number used to identify the transport vehicle/conveyance. For example, the flag on the vessel or the aircraft tail.

Conveyance ID Unique identification number assigned to each truck, trailer, or platform (VIN, SCAC); aircraft (tail number, IATA code);

train (railcar number); and vessel (name, Lloyds number, flag of country in which the vessel is register, or SCAC).

Conveyance Name The registered name of the vessel used to transport the cargo for a given trip.

Conveyance Operator The party that is held accountable for the operation of the conveyance.

Conveyance Owner The party that holds the title of the vessel, vehicle or aircraft including nationality of the owner.

Conveyance Passenger/Crew

Passenger and crew list submitted by carriers (e.g. name, country of origin, etc.)

Conveyance Schedule The timetable of arrivals and departures of conveyances.

Conveyance Tracking The tracking of the foreign physical movement of the conveyance prior to importation, from the point of arrival into the U.S. until the conveyance departs from the U.S.

Conveyance Transponder Number

The conveyance transponder fixed unique serial number.

Copyright Designation of the tangible expression of an idea giving the copyright owner the right to prevent the unauthorized use of his work.

The exclusive rights to reproduce publish and sell the matter and form of a literary, musical or artistic work.

Cost, Insurance, Freight

(CIF)

A pricing term indicating that the cost of goods, insurance, and freight are included in the price paid or payable.

Countervailing Duty (CVD) A duty assessed by CBP on particular commodities being imported to counter the effects of foreign government subsidies on cost/valuation of those commodities.

Countervailing Subsidy A subsidy given to a foreign manufacturer by their country to help in the cost of manufacturing the product. The subsidy is not reflected in the selling price to the U.S.

Country of Destination The country where export goods are destined.

Country of Export The country from which the imported merchandise was shipped. Usually (but not necessarily) the country in which the merchandise was manufactured or produced and from which it was first exported. Note, for example, that for merchandise made in Switzerland and shipped to the U.S.

through Bremen, Germany, the country of exportation would be Switzerland.

Country of Origin The country in which an article is wholly grown, produced, or manufactured.

Course of Action Set of actions recommended as a result of the selectivity or enforcement processes. The actions can result in either informed or enforced compliance.

An action or sequence of actions, taken by CBP as the result of an enforcement process.

Credit Voucher Data pertaining to overpayment of a previous deposit.

Creditor A party filing for a claim against a surety. CBP is the creditor with respect to all seized merchandise.

Criminal Forfeiture When the government develops probable cause that a particular property has become subject to forfeiture, the government may seize the property and commence with forfeiture proceedings to acquire legal title. Once the government has satisfied the legal right to acquire title (ownership), the property is declared forfeited.

Criminal History Data provided by Federal, state, and local law enforcement agencies containing information about criminal history, stolen property, and wanted and missing persons.

Criteria Hit The condition in which information filed for an import or export transaction matches an active selectivity criterion.

Criteria Management The CBP process of evaluating and adjusting selectivity criteria to improve their effectiveness. (see Selectivity)

Criteria Request The request to establish a new (or to modify an existing) selectivity criterion.

Currency Exchange Rate The value of a foreign currency in relation to the U.S. dollar for a certain date. For example, 1 Euro was worth $0.93 on February 2, 2002.

Customs-Trade Partnership Against Terrorism (C-TPAT)

A Government-Industry partnership program in which companies sign an agreement to work with CBP to protect the supply chain, identify security gaps, and implement specific security measures and best practices. Additionally, partners provide CBP with a security profile outlining the specific security measures the company has in place. Applicants must address a broad range of security topics and present security profiles that list action plans to align security throughout their supply chain.

Daily Standup/Scrum A Daily Standup is a whole team meeting that happens at the same time every day that usually lasts 15 minutes or less.

The meeting is designed to allow the entire team to synchronize with each other and to understand the flow and challenges of the development process. Each team member should provide the following information: what did I do yesterday, what am I planning to do today, and what impediments do I currently have?

Data Correlation (Correlation)

The CBP process of correlating entry, entry summary and transportation data; export and commodity and transportation data.

Date Filed Date on which information is filed with designated agency.

Date of Lading Date the transportation conveyance is loaded.

Date of Unlading Date the transportation conveyance is unloaded.

Debarred Parties List A list of persons and/or companies maintained by the State Department which are denied export privileges under the International Traffic in Arms Regulations (ITAR).

Debit Voucher Notification by the designated Treasury Depository of the inability to deposit monies collected by CBP (e.g. counterfeit money or checks with insufficient funds).

Debt Collection Notes Textual notes entered by CBP regarding a Debt Collection contract.

Deconsolidator This term is frequently used by the trade in lieu of a container freight station which is a bonded facility to which unentered consolidated cargo may be transferred for the purpose of breaking bulk pending further CBP disposition. A list of Air AMS Deconsolidators can be found using function code ORDL. For a list of all Deconsolidators, use function code XRJL for a FIRMS Code list.

Deconsolidation The act of separating a consolidated shipment into individual shipments. (see Consolidated Shipment)

Deductive Value The merchandise being appraised is whichever of the following prices is appropriate depending upon when and in what condition the merchandise concerned is sold in the U.S.:

If the merchandise concerned is sold in the condition as imported at or about the date of importation of the merchandise being appraised, the price is the unit price at which the merchandise concerned is sold in the greatest aggregate quantity at or about such date

If the merchandise concerned is sold in the condition as imported but not sold at or about the date of importation of the merchandise being appraised, the price is the unit price at which the merchandise concerned is sold in the greatest aggregate quantity after the date of importation of the merchandise being appraised but before the 90th date after the…