CBP BEGINS TESTS TO INCREASE SUPPLY CHAIN TRANSPARENCY

2024-03-11T16:45:26+00:00September 15th, 2023|Customs, Customs & Compliance, Freight Talk, Import, Shipping News|

U.S. Customs and Border Protection (CBP) recently announced the successful completion of its first interoperability test. The primary objective of CBP’s testing was to establish global standards that enhance supply chain visibility and foster effective communication between private and government organizations, utilizing various technologies. The Department of Homeland Security’s Science and Technology Directorate, as part of the Silicon Valley Innovation Program, collaborated with cohort members to contribute to this global modernization initiative.

Interoperability [in-tər-ˌä-p(ə-)rə-ˈbi-lə-tē ] noun. The ability of different software, hardware, or systems to seamlessly collaborate, enabling communication, data exchange, and functionality without obstacles or compatibility issues. Its significance lies in promoting efficiency, transparency, and standardized communication, particularly in the technology sector, where diverse systems must coexist and function harmoniously.

SUPPLY CHAIN EFFICIENCIES

The recent interoperability test focused on steel and pipeline oil supply chains along, partnering with some of the sectors largest companies. The test results highlighted the effectiveness of CBP’s interoperability efforts, leading to increased work efficiencies through the introduction of a paperless system and real-time data exchanges. The agency’s ability to enhance security and respond swiftly to potential issues was proven by the test. Additionally, the test facilitated data exchanges among traditional and non-traditional supply chain participants, allowing CBP to merge modernized data with existing information within the Automated Commercial Environment for the first time.

“Global interoperability standards will help unify the approach to transparent supply chains within both the public and private sectors, streamlining communication and improving both security and facilitation…Our 2023 test created the possibility for more advancements. With bipartisan support, CBP will extend its commitment to global standards by testing its ability to verify the origin of transactions and issue credentials. The 2024 tests are a prelude to limited production for the five Silicon Valley Innovation Program projects (pipeline oil, steel, natural gas, e-commerce, and food safety) and the larger CBP modernization effort.”
Vincent Annunziato, Business Transformation and Innovation Division Director | CBP

INTERNATIONAL TESTING

CBP’s innovative initiatives are scheduled to continue with international and domestic testing in 2024, focusing on e-commerce, natural gas, and food safety. These tests will involve collaboration with several partner government agencies and seek to further promote transparency and global interoperability standards.

In the first international test, countries with Mutual Recognition Agreements will exchange the newly established Global Customs Trade Partnership Against Terrorism/Authorized Economic Operator credential, simplifying the process for private industry to seek benefits across multiple countries without the need for separate applications. The second international test looks to streamline the exchange of billing data between countries, further facilitating global trade.

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