1. 0 ACE Content Overview Trade Support Network June 5, 2002 Paul Nicolaisen, eCP Gail Raper, eCP

2. 1 Agenda for Presentation Overview of Increment 1.1 Paul Nicolaisen Overview of Increments 1.2 - 4Gail Raper

3. 2 Agenda for Overview of Increment 1 New Way of Viewing ACE Summary of ACE Increments and Releases Overview of Methodology ACE Increment 1 –What has changed since January? –Why? ACE Notional Deployment Timeline

4. 3 New Way of Viewing ACE The ACE Stair Step Chart has been retired The 7 Release Chart is the new way of viewing ACE Increment 1 Increment 2 Increment 3 Increment 4 1.11.2 2.12.2 3.2 3.1 4.1

5. 4 Release 1 – 1.1 Release 1 – 4.1 Release 2 – 1.2 Release 1 – 2.1 Increment 1 8/01 – 10/04* Full Conveyance Tracking Full Cargo Tracking Full Account Revenue Functions Full Risk Management Release 2 – 2.2 Increment 2 2/02 – 1/05 Increment 3 11/02 – 8/05 Increment 4 8/03 – 9/05 Consolidated Interface for Inspectors Automated Truck Manifest e-Release for Trucks Enhanced Account Management Initial Account Revenue Risk Management: Record inspection findings and perform analysis Accounts for all Trade types (except Exporters) Enhanced Account Management: Hierarchies Enhanced Account Revenue Bond Management: eBond & Bond Query Remaining Truck Release Processes Initiate IPR Database Enhanced Risk Mgmt: Targeting & Selectivity DB, and Lab findings Integrated Manifest for all modes of Transportation e-Release (and Standard Release) for all modes Integrated process for Import Transactions Initial Cargo Tracking (In-Bond, FTZ & Warehouse) Initial Conveyance Tracking License, Permit, Certification Database Enhanced Account Revenue Enhanced Risk Mgmt: Initial Compliance Assessment Automated Entry Summary (including Importer Activity Summary Statement, and Reconciliation) Automated Liquidation Automated Protest Management Enhanced Account Revenue Enhanced Risk Mgmt: Electronic Team Review Findings Trade Statistics & Reports Account Management: Exporters Full Export Processing Multi-modal Manifest Automated Mail Release Automated Drawback Release 1 – 3.1 Automated Quota & Visa Mgmt Automated AD/CVD Bond Sufficiency Enhanced Customs Reference Information Full IPR Capability Release 2 – 3.2 Summary of ACE Increments and Releases Key Requirements Complete; TO4 Under Contract Requirements Complete; Subject to Negotiation Requirements Under Development Baseline Program Plan ACE Infrastructure Secure Web Portal Account-based access for USCS & 40 Importers Initial Account Database ACE Reference Files (HTS) Source: Increment Allocation Matrix V.2.2. April 18, 2002; *Task Order 4 Contract

6. 5 Overview - Methodology ACE Functionality Needed Increment 4 Increment 3 I 1.2 RSS Increment 1.1 RSS Detailed Requirements For Increment 1.1 Increment 2 RSS Detailed Requirements For Increment 2.1 Increment 1.2 RSS Detailed Requirements For Increment 1.2 Requirements Specification Set (RSS) Gather Existing DataCapture “As-Is” Processes Develop “To-Be”” Processes Conduct Focus Groups SMEs PGA Trade eCP ACE SRD System Requirements Document (SRD) I1 I2 I3 I4 Increment Allocation Overall System Requirements Desired Business Results

7. 6 Exam Findings Entry Data ManifestData Release Data SAR Ledger $ Accounts Data Reference Data Secure Intranet Dial-up Secure Internet Public Internet Customs Operational Portal Existing ABI/AMS Interfaces Accounts Portal Customs Importers Brokers Census Carriers Public Portal ACS ACE Increment 1 (Releases 1 and 2)

8. 7 ACE Increment 1 Development Timeline as shown in 01/02 Enterprise Portal & Infrastructure Account Management On-line Truck Manifest Primary Inspector Portal Account Management Enhancements Periodic Statements and Payment Feb 2002Feb 2003 Dec 2003Aug 2003 Oct 2002 Release 1 Jun 2002 Release 2

9. 8 ACE Increment 1 Development Timeline as of 06/02 Enterprise Portal & Infrastructure Account Management On-line Account Management Enhancements Periodic Statements and Payment Feb 2002Feb 2003 Dec 2003Aug 2003 Oct 2002 Release 1 Jun 2002 Release 2 Truck Manifest and Release Primary Inspector Portal

10. 9 ACE Increment 1.1 Overview

11. 10 Increment 1, Release 1 ACE Infrastructure –Provides a secure foundation for delivering ACE functionality –Achieve security certification to facilitate widening the user base Implement a Secure Web Portal –Used by Customs and Trade –Provides access to all available ACE information (based on assigned privileges and the data content pulled from ACS) Create Accounts for Importers and their Designees –Account profiles, and significant activity logs –Limited to approximately 40 Importers (selected by Customs) –Skeletal accounts for brokers and carriers associated with those 40 accounts Initiate an Account Information database –Contains all ACE account information –Contains some ACS-based compliance information Initiate the ACE reference information database –Contains HTS reference file Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

12. 11 ACE 1.1 Requirements in Sub-releases ACE Sub-Release in October 02 Initial ACE Infrastructure Established u ACE Systems & Network Mgt Initial Operating Capability (IOC) u ACE Security Functionality IOC u ACE Logging IOC Enterprise Portal Established u On-line Help IOC Selected Customs Reference Files Implemented for Web Access u Harmonized Tariff information (partial) u Port Codes Initial Alert Structure

13. 12 ACE Sub-Release in February 03 ACE Infrastructure Enhanced –ACE Systems & Network Mgt Enhanced –ACE Security Functionality Enhanced –ACE Logging & Auditing Supported Enhanced Account Management Functions Implemented –Web-based Account Application u Trade Users from 40 Organizations u Customs Users –Account Creation & Validation u Create relationships with brokers and carriers u Brokers and carriers confirm the relationship u Trade account owners can manage/change access privileges of users within their account –Account Compliance & Action History –Account Significant Activities Log ACE 1.1 Requirements (Cont)

14. 13 ACE 1.1 Requirements (Cont) Web-based Reference Files Enhanced Enhanced financial and transaction data Enterprise Portal On-Line Help Enhanced –On-line Training for Portal Users IOC

15. 14 Establish a Trade Account Account Application Customs Validation Account Established

16. 15 Each Account Establishes A Hierarchy Customs Account Managers Importer Account Owners Brokers, Carriers

17. 16 Accounts Maintain Their Own Internal Information

18. 17 USCS Infrastructure Systems and Network Infrastructure reliability and quality of service Protect against intruders while allowing roles-based access Protect and manage data to ensure it is available; DR Planning Software Distribution and Remote administration Storage Management Configuration and Operations Management Performance and Availability Management Security Management What is the infrastructure of ACE?

19. 18 IDS eCP Security Architecture Concept

20. 19 Release 1: Trade Involvement 02-ECP-0605 Release 1 AprilMayMarJuneJulyAugSeptOctNovDecJanFeb 2002 2003 Account Portal Access 1.1.2 Trade input to POC TSN presentations Base portal Delivery 1.1.1 Requirements & Process Decomp. Functional Workshops * * Requirements, process and COTS gap baselines. Focus on UI, reports, queries and data. TURIC Presentation Business Readiness Technical Readiness SAT Pilot Deployment FRN for Account Selection Account Participants Selected and TSN Meeting TSN Meeting TSN

21. 20 Trade Participation in ACE 1.1 Design (July 2002) General Approach to Trade Participation in ACE 1.1 Design Efforts –Trade invited to participate in special functional design workshops most-likely conducted in late-June through mid-July 2002 u May address multiple functions within a single workshop –Possibility of future workshops as needs dictate –Each workshop will cover specific function involving Trade –Coordinate through TSN Accounts Committee –Objective is to keep Trade’s interest and situation in view –eCP desires broad range of participation –However, generally limited to 10 representatives u 5 Importers u 3 Brokers u 2 Carriers

22. 21 Trade Participation in ACE 1.1 Design (July 2002) Current listing of suggested functional workshops –Account Creation/Account Management u Company Application/Enrollment Process u Individual User Application/Registration Process u Identification and Responsibilities of Trade Account Owner –Business Partner Relationships u Creation of Relationship u Limitations and Management of user authorizations –Trade Portal/User Interface u Basic layout, navigation, and personalization –Account Compliance Action Plan u Collaborative planning with Customs Account Manager u Managed Accounts Only –Significant Activities Log u Document/Correspondence Attachment and Retrieval –Reports and Queries u 5 Importers u 3 Brokers u 2 Carriers

23. 22 Release 1 Timeline MayJuneJulyAugSepOctNovDecJanFebMarAprMay 1 Continued Participation of SME & Trade Build Oct. Release 7/2 – 8/15 SIT/SAT 9/1 – 10/31 * Release delivered to Pilot Test 10/31 * NDC 10/31 Build February Release 8/6 – 12/2002 SIT/SAT 12/2002 – 02/28/2003 * Full Account and Reference Data Solution Account Managers and Trade 03/01/30 – 05/30 Participation of SME & Trade B − −Portal Framework & Infrastructure − −Release to OIT at NDC − −Pilot Test & ORR − −Intranet only * SLAs Defined * FRN Results B B B Operational Readiness Review − −Functional Readiness − −Technical Readiness Reference Data Requirements Decomp Workshops 5/20 – 5/31 Design Workshops 6/3 – 6/7 6/10 – 6/14 6/17 – 6/21 6/24 – 6/28 7/1 – 7/5 7/7 – 7/12 7/15 – 7/20 Interim Design Review Oct 7/2 Design Gap Analysis Oct 7/4 – 8/5 Design Feb Release 7/2 – 8/5 CDR 8/16 1 1 1 1 1 B B Operational Readiness Review − −Functional Readiness − −Technical Readiness

24. 23 ACE Increment 1.2 Overview

25. 24 Increment 1, Release 2 (Aug 03 – Oct 04) Provide a primary Inspector portal –Access to all required data / tools via consolidated interface at primary –Interface at secondary to record inspection findings Initiating the integrated manifest –Implement an automated truck manifest system Implement the e-Release for the truck mode –Using pre-filing information to provide the opportunity for faster release at the primary booth Initiate a transaction database –Contains all ACE import transaction data Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

26. 25 Increment 1, Release 2 (cont) Initial Account Revenue functions for selected accounts –Statement generation –Periodic payment (via ACH Credit) –Initiate subsidiary A/R ledger Enhanced Account Management –Notifications and alerts provided to the Account Manager/Account Owner –Enhanced Significant Activity Log Capabilities u Iterative Search u Archival of log items Expand Customs Reference Information –Rules and regulations (initial) –Rulings and decisions (initial) “Tracer” –Initial enforcement capabilities to record inspection results Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

27. 26 ACE 1.2 Transactions-Revenue Subsystem Block Diagram Transactions Subsystem: -SAR Log by ACS Transaction -Revenue Data ACS (System of Record) Revenue Data: -Accounts Receivable -Payments Subsidiary Ledger Pre-file data from Entry Summary Trade: -ACH Credit from Riggs Bank -ABI Inputs Accounts Subsystem Trade: -Status Queries -Statements

28. 27 ACE 1.2 Transactions-Release Subsystem Block Diagram Transactions Subsystem ACS (System of Record) Cargo Data Formats: -CUSCAR -Web/XML -X.12 -Barcodes/Transponders Release Data: -Release/Arrival -Override/Exams -Selectivity results Automated Manifest Pre-file data from Entry filers ABI Inputs Trade: -Status Queries -Notifications Queries to/from: -FMCSA -TECS

29. 28 ACE 1.2 Border Crossing Diagram Truck Primary Booth Transponders Proximity Reader

30. 29 ACE 1.2 Release Process Pre-file Cargo Data Transponder Data Pre-file Carrier Data ACS Selectivity Data Clearance eRelease Decision Matches Standard Release Decision No Yes Conveyance Crew BOL Manifest ABI Entry Image Send data to ACS No Pre-file Data

31. 30 ACE Increments 2 through 4 Overview

32. 31 Increment 2, Release 1 (Nov 03 – Mar 04) Create full accounts for brokers, carriers, sureties, Participating Government Agencies (PGAs) and others Enhanced Account Revenue –Daily statements including ACH Debit Implement Remaining Release processes for Air, Rail, and Sea modes of transport Expand Customs reference information Initiate single database for Selectivity & Targeting criteria Link to lab findings electronically Communication of results related to informed and enforced compliance Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

33. 32 Increment 2, Release 1 (cont) Initiate Intellectual Property Rights (IPR) database –Automation of the Customs recordation process (e.g., trademarks, copyrights) Bond Administration –Receiving the electronic bond –Adding the information to the account profile –Bond query capability Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1 IPR Rol ex

34. 33 Increment 2, Release 2 (Sept 04 – Jan 05) Integrated manifest –Not multi-modal, single manifest type for all modes ACE release processes for remaining modes of transportation (excluding mail and courier) Integrated process for all import transaction data Initial Cargo Tracking (In-Bond, FTZ, & Warehouse) –Electronic reporting by Trade –Initial database to provide data on cargo entry and exit dates Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

35. 34 Increment 2, Release 2 (cont) Initial Conveyance Tracking –Automated monitoring of in-bond conveyances (based on estimated time of arrival) Expand Customs Reference Information Administer Licenses, Permits, and Certificates –Initiate databases Extended Account Revenue –Automated Violation Billing Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

36. 35 Increment 3, Release 1 (Feb 05 – June 05) Automated Anti-Dumping/Countervailing Duty (AD/CVD) –Coordination with Commerce –Automated tracking of entry summaries associated with AD/CVD –Automated notification of information related to AD/CVD cases –Business rules for handling the entry summary for the AD/CVD Automated Quota & Visa Management –Validating Visas –Tracking and updating Quota usage Bond Management –Determine Bond Sufficiency Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

37. 36 Increment 3, Release 1 (cont) Expand Customs Reference Information –Census edits Full IPR Capability –Supporting Release –Supporting Enforcement Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

38. 37 Increment 3, Release 2 (May 05 – Aug 05) Automated Census interface –Entry Summary feed for statistics Generate Trade Statistics and Reports –Supporting Customs, Trade and PGAs Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1 Compliant Goods Non-Compliant Goods Account Action Plan

39. 38 Increment 3, Release 2 (cont) Automated Entry Summary Processing –Automated Entry Summary (e.g., Importer Activity Summary Statement) –Automated Reconciliation Automated Liquidation –Change and No Change liquidation Automated Protest Management –Electronic protest forms and coordination Enhanced Account Revenue Record Team Review (Entry Summary) Findings electronically Compliance Assessment & Prior Disclosure Initiate electronic Suspension and/or Extension Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

40. 39 Increment 4, Single Release (July 05 – Sept 05) Account Management –Accounts for Exporters Full Export Processing –Including coordination with appropriate PGAs –Electronic close-out of in-bond, FTZ and Warehouse entries Multi-modal Manifest –Providing the manifest for multiple modes of transportation for the same cargo ACE Release Processing –Mail –Courier Automated Drawback Processing –e.g., Automated linking of import and export transactions Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1

41. 40 Increment 4, Single Release (cont) Full Cargo Tracking –Automated close-out of In-Bond, FTZ and Warehouse cargo Full Conveyance Tracking –Automated monitoring and reporting on location of conveyances Full Account Revenue Functions –Remaining Revenue functionality (Drawback, exports, etc.) –Account Financial Statistics and CFO Reporting Completed Customs reference information Full Compliance Assessment Incr 1 Incr 2 Incr 3 Incr 4 1.11.2 2.12.2 3.2 3.1 4.1