Modernization of government IT systems

Governments are notoriously slow adapters of new technology, so it may come as no surprise that many are just now automating systems for keeping track of import and export documentation. Nevertheless, companies must have systems in place to interface with various customs authorities electronically. Here are a few of the key international customs players and how they handle import and export documentation:

United States:

Exporters are required to electronically file the export declaration via the U.S. Census Bureau’s Automated Export System (AES). U.S. Customs has also automated its import system, which is called the Automated Broker Interface (ABI). Certified licensed brokers usually handle the filing of import documents for most companies because the process is so highly complicated. However, a growing number of companies are self-filing these days because doing so is cheaper and they can control their own data.

Another key development is the Automated Commercial Environment or ACE, which represents a business process transformation on the part of Customs that will help electronically speed legitimate trade while providing greater security. The frequently asked questions document on ACE is 113 pages long, indicating that there will be quite the learning curve when and if the Automated Commercial Environment becomes a reality.

European Union:

The E.U. embarked on a six-year program to modernize its customs systems in 2004. The European eCustoms Initiative will create a paperless environment for customs and trade documentation. All 25 E.U. member states will be on the common system by 2010. The initiative includes the New Computerized Transit System (NCTS), the Automated Export System (AES), and in 2008, the Automated Import System (AIS).

Australia:

Australia has put in place an electronic system for customs clearance called the Integrated Cargo System (ICS). Companies are able to access customs and other government agencies through a single electronic window.