Customs Modernization

1
Customs Modernization
An IBM Presentation to the ASEAN Customs DGs
Meeting

• Bryan Barton
• Director, Government Finance
• IBM Global Services - Government
• July 24, 2002

2
Trade Environment

• Paradigm shift in global trade
• Digital economy
• Integrated supply chains
• Globalization
• Massive growth in trade volumes
• Security and enforcement challenges
• Enforcement is global imperative
• Rise of transnational crime
• Anti-terrorism as emerging priority
• Risk management is global best practice
• New international partnerships required
• Convergent response by trade and government
• Accelerated spending on modernization and trade
  management
• Trade facilitation compliance partnerships
• Commercialization of core processes
• e-services response required to remain competitive

3
Trends in Customs Modernization
4
Customs business challenges

• How can we close the gap between increasing trade
  and available customs resources?
• How can we simplify our processes?
• What services do the trading community value?
• How can we facilitate economic development?
• What protections are needed for public health,
  safety, welfare, and our environment?
• Where are our greatest risks?
• What new programs are needed to combat them?
• How can I cooperate with other governments
  against global threats?
• How do we enforce regulations in a digital
  economy?
• How do we attract and keep skilled professional
  staff?
• How should I organize and deploy officers to be
  most effective?
• How do we modernize IT cost-effectively and
  without disruptions of service?

5
Technology drivers for Customs

• Global integration of logistics, supply chains,
  and business systems Intelligent cargo
• Customs is increasingly a visible control point
• Information access via pervasive devices in a
  global cellular wireless infrastructure
• Customs should exploit secure access technologies
  to drive productivity and mission effectiveness
• Intelligent infrastructure will deliver value
  through utility services model
• Customs systems should be further enhanced by web
  standards
• IT Value migrating to service delivery models
  based on software assets
• Customs must adopt new delivery models
• Competitive advantage optimized by powerful
  analytics and knowledge management
• Customs must stay ahead of advanced technology to
  optimize its enforcement posture

6
US Customs Modernization ACE

• Enterprise modernization of worlds largest
  customs administration
• Strategic partnership with prime contractor
• Key components
• Business process reengineering
• Enterprise architecture
• CMM processes, rigorous business and financial
  management
• Internet and advanced technology exploitation
• Innovative funding and business models
• Infrastructure management
• ACE (commercial operations - cargo clearance)
  first, but law enforcement, passenger, finance,
  HR, and administration included
• Customers key concerns
• Risk, especially during transition
• Capability of team and personnel

7
U.S. Customs Modernization Team
IBM Global Services

• Prime Contractor

• Program Management

IBM Global Services
Partner
Partner
Partner
Partner

• Business transformation
• Knowledge management
• ERP/CRM
• Executive and legislative oversight relations
• Training

• Information security
• Telecommuni-cations

• Enterprise architecture
• e-Business solutions
• Infrastructure management
• RD technology

• Systems engineering and integration
• Software engineering and development
• Enforcement and intelligence technologies
• Process engineering

• Customs business expertise
• Trading community relations
• Global trade and customs expertise

8
US Customs Automated Commercial Environment

• "... just in time realities of modern trade have
  made that approach (physical borders, inspection
  of goods, levying customs duty) obsolete."
• Heritage Foundation Panel C Span Radio
  (September 27, 2001)
• "... e Customs Partnership ... a vision of ...
  paperless organization ... uses electronic means
  to carry out mission responsibilities ...
  explosive growth in international trade ...
  ever-increasing law enforcement demands ...
  includes the reengineering of Customs
  operational processes ... new technology
  infrastructure... systems and applications."
• US Customs Press Release (April 27, 2001)
• "... an important first step in providing
  state-of-the-art technology essential to
  expediting movement of commerce ... bringing 21st
  century business practices to America's borders
  ... dramatically enhance our ability to intercept
  contraband."
• Acting Commissioner Chuck Winwood (April 27,
  2001)
• "... the principle tool that will facilitate the
  expeditious and efficient processing of
  legitimate cross border trade."
• US Senator Byron Dorgan (April 27, 2001)
• " ... The global economy has significantly
  increased the traffic of goods and people
  crossing our borders."
• US Representative Steny Hoyer (April 27,
  2001)

9
In summary - Customs Modernization can be
initiated as flexible phases to meet the
considerations of individual clients.
Entry point varies based on Client specific needs
Phases
Deploy
Transition Planning
Strategic Planning Assessment
Enterprise Architecture Design
Solution Proof of Concept
Solution Design Build