The source for trade compliance news

CBP Completes First Interoperability Standards Test

CBP recently completed its first interoperability test, which focused on the pipeline oil and steel supply chains, the agency announced in a Sept. 12 news release. Vincent Annunziato, director of CBP’s Business Transformation and Innovation Division, said 23 companies participated in the test as part of a broader effort to promote global interoperability in how software systems work with each other.

Start A Trial

CBP said it's committed to promoting global interoperability as part of its ongoing modernization effort. The goal of the testing is to create global standards that "foster transparency" and create a standard form of communication between the "private sector and government agencies while allowing both to maintain the ability to choose from various technologies," CBP said.

Annunziato, speaking during a session at the National Customs Brokers & Forwarders Association of America Government Affairs Conference Sept. 11, said CBP wanted to take the "prudential information" and convert it "into our e-system and integrated legacy data." This allowed CBP to receive data in real time and prior to receiving an entry, Annunziato said. He said that this allowed private industry to receive that same data as well.

CBP said that as part of the test, the software systems in both the pipeline oil and steel supply chains work environments helped enhance both environments by "removing the need for paper and allowing for the real-time exchange of data, greater security and more timely reactions from the agency." CBP also said that the system included "data exchanges" from both traditional and non-traditional "supply chain actors," CBP said. This allowed CBP to combine the data that includes "information of shipments prior to arrival, with data that already exists in" ACE for the first time, CBP said.

The test is being done under the DHS Silicon Valley Innovation Program, CBP said (see 1911120008). The agency hopes to continue to invest in global interoperability with more testing in 2024, focusing on "e-commerce, natural gas, and food safety." CBP will collaborate with "several partner government agencies" for the tests, it said.

Annunziato said that as CBP ran this test, he realized the "role of the broker" is going to change if this kind of supply chain reporting becomes a reality. "Because who's going to reach out if there's a problem with the data? It's not going to be us," he said. "We may communicate that there's a problem, but then who becomes responsible?" Annunziato also said that for those struggling to imagine a "transparent supply chain, this system opens the door" for that.

CBP also previewed the first international test, wherein participating countries with mutual recognition agreements will "exchange the newly authored Global Customs Trade Partnership Against Terrorism/Authorized Economic Operator credential," CBP said. "This will allow private industry to request benefits from countries without having to apply separately for each country," CBP said. The second international test will focus on how countries "exchange billing data" to verify goods that have been exported, CBP said.