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Prime Integration Contract

 

The U.S. Customs Service continues to develop programs that will help meet the needs of the importing public. Many of these developments have a profound impact on maquiladora operations and require maquila operators and importers of maquila product to closely examine these developments and make adjustments as necessary and appropriate.

On April 27, 2001, U.S. Customs Acting Commissioner Charles W. Winwood announced the award of the Customs Modernization Prime Integration Contract to the e-Customs Partnership that provides for the development of an Automated Commercial Environment (ACE) system to dramatically streamline Customs commercial processing systems. The key companies in the e-Customs Partnership are the IBM Global Services, as the Prime Contractor; Lockheed Martin Mission Systems; KPMG Consulting; Computer Sciences Corporation (CSC); and Sandler & Travis Trade Advisory Services (STTAS), Inc. The e-Customs Partnership also includes Booz-Allen & Hamilton, Inc.; ITS Services, Inc.; and more than 40 small businesses.

In general terms, the so-called e-Customs Partnership, conveys a vision of Customs future as a paperless organization that uses electronic means to carry out mission responsibilities. With the challenges of explosive growth in international trade and travel and ever-increasing law enforcement demands, Customs recognizes that it must enhance its operations. Modernization includes the reengineering of Customs operational processes and the development of a new technology infrastructure, computer systems, and software applications to support these processes. Modernization will address Customs commercial, enforcement, and administrative operations. The e-Customs Partnership, therefore, will help develop the infrastructure and procedures through which the entry and admission of merchandise into the United States will be accomplished for the distant future.

The Automated Commercial Environment, or ACE, is the principal tool that will facilitate the expeditious and efficient processing of legitimate cross border trade. Accordingly, the development of ACE, and the need for funding of ACE, is of essential importance to the Customs Service as well as to the importing public. At the present time, funding for ACE, like funding for all governmental programs, is subject to considerable political discussion but the prospect of inadequate ACE funding threatens to slow the development of the electronic interface through which Customs seeks to facilitate trade while enforcing the law. The impact of the non-funding or inadequate funding of ACE on the maquiladora industry is staggering. The entry of merchandise will be slowed, inventory levels will be affected and the ability of the Customs Service to accomplish its most basic tasks will be threatened. Accordingly, it is important for maquila operations and importers of maquila products to monitor ACE funding and help ensure that such funding is allotted appropriately to the needs of the maquila industry.

With the challenges of explosive growth in international trade and travel and ever-increasing law enforcement demands, Customs must enhance its operations. Modernization includes the reengineering of Customs operational processes and the development of a new technology infrastructure, computer systems, and software applications to support these processes. Modernization will address Customs commercial, enforcement, and administrative operations.

Sen. Byron Dorgan, ranking member of the senate appropriations subcommittee on treasury and general government, and Rep. Steny H. Hoyer, ranking member of the house appropriations subcommittee on treasury, postal service, and general government, are among the supporters of U.S. Customs Modernization.

"The announcement of the ACE Prime contractor marks a major milestone in the Customs Service critical modernization effort," said Dorgan. "ACE is the principal tool that will facilitate the expeditious and efficient processing of legitimate cross border trade. I am committed to ensuring that the funds Congress has appropriated, and which we will continue to appropriate, will be spent wisely for the benefit of American business and the American consumer."

Said Hoyer: "The global economy has significantly increased the traffic of goods and people crossing our borders so it is important that the Customs Service has the technology to meet those demands head-on. Awarding the prime contract is a significant step in advancing this critically important modernization project. The administration and Congress must ensure that Customs receives the resources to complete this job in a timely manner."

"The Prime Integration Contractor will help us design, build, and implement new information systems," said S.W. Hall, Jr., assistant commissioner for the Office of Information and Technology and customs chief information officer. "The e-Customs Partnership, a team of top-notch companies and highly qualified professionals, has successfully executed large information systems projects similar to Customs Modernization. The team’s business knowledge and technical capabilities, combined with the operational knowledge of dedicated Customs employees, as well as input from stakeholders like the trade community, is our blueprint for successfully building modernized systems that meet Customs and stakeholder needs."

Lawrence Hanson is a partner with the law firm of Sandler, Travis and Rosenberg, P.A in its Houston, Texas office. Hanson is also adjunct professor of law at the University of Houston Law Center in the areas of U.S. Import Regulation and U.S. Export Regulation. He can be reached at Sandler, Travis and Rosenberg, 440 Louisiana, Ste. 900, Houston, Texas 77002; (713) 236 7715 and lhanson@strtrade.com.

 
 

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