CSMS Message: 97-000087

TO : ALL ABI BROKERS.

FROM : BONNIE ZZ-BRIGMAN

SUBJECT : REMOTE TOWN HALL SUMMARY

DATE : 01/28/97

REMOTE LOCATION FILING
TOWN HALL MEETING
JANUARY 16, 1997

ON JANUARY 16, 1997, THE REMOTE TEAM HELD A TOWN HALL
MEETING TO CLOSE REMOTE LOCATION FILING PROTOTYPE I AND
KICK-OFF REMOTE LOCATION FILING PROTOTYPE II. REMOTE
PROTOTYPE I RAN FROM JUNE 19, 1995 THROUGH DECEMBER 31,
1996. REMOTE PROTOTYPE II BEGAN ON JANUARY 1, 1997.
(THERE WAS NO INTERRUPTION OF REMOTE FILING FOR THOSE
FILERS TRANSITIONING FROM RLF I TO RLF II.) APPROXIMATELY
FIFTY FIVE MEMBERS OF THE TRADE, REPRESENTING IMPORTERS,
BROKERS, CARRIERS, AND FREIGHT FORWARDERS WERE IN
ATTENDANCE. PRESENTATIONS WERE GIVEN BY CUSTOMS PERSONNEL
COVERING THE CLOSURE AND SUCCESSES OF RLF I, PARTICIPATION
IN RLF II, AND THE LONG TERM GOALS OF THE REMOTE PROGRAM.
FIVE TRADE PARTICIPANTS FROM RLF I (3 BROKERS, 2
IMPORTERS) SHARED THEIR EXPERIENCES FROM THE FIRST
PROTOTYPE AND THEIR HOPES AND EXPECTATIONS FOR BOTH RLF II
AND THE REMOTE PROGRAM AS A WHOLE. OVERALL THEIR COMMENTS
WERE EXTREMELY POSITIVE; THE PRIMARY NEGATIVES WERE SYSTEM
AND PORT LIMITATIONS. (SOME OF THE TRADE BENEFITS AND
BARRIERS ARE LISTED BELOW.) THE REMOTE TRAINING TEAM
PLANS TO TRAIN BETWEEN TEN AND TWELVE ADDITIONAL PORTS IN
THE NEXT YEAR TO ALLOW FOR GREATER PARTICIPATION.

AN INFORMAL QUESTION AND ANSWER SESSION WAS CONDUCTED
AFTER THE PRESENTATIONS. CUSTOMS PERSONNEL, ALONG WITH
SOME OF THE CURRENT TRADE PARTICIPANTS WERE AVAILABLE TO
ANSWER QUESTIONS FOR ALL INTERESTED MEMBERS OF THE TRADE.
THE FOLLOWING IS A LIST OF THE MOST FREQUENTLY ASKED
QUESTIONS FROM THIS SESSION.

Q. WHERE DOES SUMMARY PROCESSING TAKE PLACE UNDER RLF
II? CAN THE FILER DESIGNATE A SUMMARY PROCESSING PORT?

A. THE PORT OF ARRIVAL WILL ALWAYS BE THE ENTRY SUMMARY
PROCESSING PORT UNDER RLF II. ENTRY SUMMARY WORKLOAD
DISTRIBUTION WILL NOT BE HANDLED IN RLF II, THEREFORE, THE
FILER MAY NOT SELECT A SEPARATE SUMMARY PROCESSING PORT.

Q. HOW DOES RLF AFFECT CARRIERS?

A. RLF IS TRANSPARENT FOR AMS CARRIERS. SINCE THE
MOVEMENT TO A DES IS COVERED BY THE IMPORTERS BOND, THE
CARRIER IS RELEASED FROM LIABILITY AS SOON AS THE MOVEMENT
IS APPROVED. THIS IS INDICATED TO AMS CARRIERS BY A "1X"
MESSAGE. ALL OTHER RELEASED RLF ENTRIES WILL RECEIVE A "
1C" MESSAGE.

NON-AMS CARRIERS WILL RECEIVE A CF 3461 SIGNED BY THE
FILER (SIMILAR TO THOSE USED WITH PAPERLESS ENTRIES).
IF A DESIGNATED EXAMINATION SITE IS BEING UTILIZED, THE
CF3461 WILL INDICATE THAT CUSTOMS HAS AUTHORIZED THE
CARGO TO MOVE TO A DESIGNATED EXAMINATION SITE AND THAT
THE IMPORTER ASSUMES THE LIABILITY FOR THIS MOVEMENT. DUE
TO THE FACT THAT THE FILER IS IN A REMOTE LOCATION, THIS
MAY BE RECEIVED VIA FAX OR THROUGH A SUB-AGENT.

Q. WHAT PORTS WILL BE AVAILABLE FOR RLF II?

A. ALL OF THE PORTS THAT WERE OPERATIONAL UNDER RLF I
WILL CONTINUE TO BE INCLUDED IN RLF II. THESE PORTS ARE
BALTIMORE, BUFFALO, JFK, NEWARK, NEW YORK SEAPORT, LOS
ANGELES, CHAMPLAIN, DETROIT, PORT HURON, NORFOLK, LAREDO,
EAGLE PASS, DALLAS (DES ONLY), AND ROCHESTER (DES ONLY).

THE REMOTE TRAINING TEAM PLANS ON TRAINING TEN TO
TWELVE PORTS IN THE COMING YEAR. PORTS THAT ARE ALREADY
SCHEDULED FOR TRAINING ARE ATLANTA, SAVANNAH, CHARLESTON,
AND JACKSONVILLE. FURTHER SCHEDULING OF TRAINING WILL BE
BASED ON THE APPLICATIONS RECEIVED. THE PORTS WITH THE
HIGHEST VOLUME WILL BE TRAINED FIRST. A SPECULATIVE GUESS
PLACES SAN DIEGO, HOUSTON, DALLAS, AND CHICAGO AT THE TOP
OF THE LIST.

Q. THE FEDERAL REGISTER NOTICE MENTIONED THAT A FILER
MUST BE EXPERIENCED IN ELECTRONIC INVOICING (EIP). I AM
INTERESTED IN REMOTE FILING, BUT AM NOT USING EIP. WHERE
DO I START?

A. THE ELECTRONIC INVOICING PROGRAM (EIP) IS A
PREREQUISITE FOR FILING REMOTE ENTRIES. EIP USES BOTH AII
AND EDIFACT FOR THE TRANSMISSION OF ELECTRONIC INVOICE
INFORMATION. TO GET STARTED IN THIS PROCESS CONTACT YOUR
ABI CLIENT REPRESENTATIVE OR THE REMOTE TEAM AT (202) 927-
0294.

Q. WHY SHOULD I INVEST IN THIS PROGRAM NOW SINCE IT IS
ONLY A PROTOTYPE? ISN'T THERE THE POSSIBILITY THAT THIS
PROGRAM WILL NOT BE CONTINUED?

A. THERE IS AN UP-FRONT FINANCIAL INVESTMENT IN SOFTWARE
DEVELOPMENT NECESSARY TO PARTICIPATE IN REMOTE LOCATION
FILING. HOWEVER, THE CURRENT PARTICIPANTS HAVE FOUND THAT
THIS IS A WISE INVESTMENT. BY PARTICIPATING AND
COMMENTING ON THE PROGRAM FROM ITS OUTSET, THE TRADE HAS
BEEN ABLE TO ASSIST CUSTOMS IN THE DEVELOPMENT OF THE
PROGRAM SO THAT IT BEST SUITS THE NEEDS OF BOTH CUSTOMS
AND THE TRADE. THEY ALSO REALIZE THE FUTURE IS NOW AND
THAT CUSTOMS, ALONG WITH THE TRADE, IS MOVING TOWARDS A
COMPLETELY AUTOMATED ENVIRONMENT. MANY PARTICIPANTS FEEL
THAT THEY MUST PARTICIPATE AS EARLY AS POSSIBLE TO AVOID
BEING LEFT BEHIND. NO ONE WANTS TO PLAY CATCH UP TO THE
COMPETITION. THIS PROGRAM IS NOT A TEMPORARY MEASURE; IT
IS MANDATED BY THE CUSTOMS MODERNIZATION ACT. CUSTOMS IS
OBLIGATED BY LAW TO IMPLEMENT REMOTE LOCATION FILING.

Q. DOES REMOTE LOCATION FILING IMPACT FREIGHT
FORWARDERS?

A. AS THE RELEASE OF CARGO BECOMES A MORE AUTOMATED
PROCESS, IT ALSO BECOMES A FASTER PROCESS. IT IS VITAL
FOR ALL PARTIES INVOLVED IN THIS PROCESS TO REALIZE AND BE
ABLE TO MEET THE NEEDS OF THEIR CUSTOMERS. UNDERSTANDING
THE HIGH LEVEL OF AUTOMATION ASSOCIATED WITH THIS TYPE OF
RELEASE ALLOWS YOUR ACCOUNTING DEPARTMENT TO DO SOME REAL
NUMBER CRUNCHING WHEN THE TIME COMES TO DEVELOP AN ACTUAL
"COST FOR SERVICE" ELEMENT IN THE PRICING FORMULA APPLIED TO
YOUR OVERALL RATE SCHEDULE. WITHOUT HAVING TO ADHERE TO
INBOND PROCEDURES ASSOCIATED WITH THE TRADITIONAL MOVE TO
AN INLAND PORT, REAL COST EFFICIENCIES CAN BE OBTAINED BY
ELIMINATING FORMS, SEALS, AND TIME SPENT WAITING FOR
CUSTOMS ACTIONS. THE ABILITY TO QUICKLY CLEAR CUSTOMS
OR BE PERMITTED TO TRANSPORT CARGO TO AN INLAND LOCATION
PROVIDES THE OPPORTUNITY TO CATER TO COMMERCIAL VENTURES
UTILIZING "JUST IN TIME" INVENTORY PRACTICES AND, WITH SOME
CREATIVE CUSTOMER-FORWARDER DIALOGUE, PERMIT AN
AGGRESSIVE FORWARDER TO OFFER A FULL SCALE DISTRIBUTION
SERVICE TO INTERESTED PARTIES.

TRADE BENEFITS
SHORT TERM
- EVALUATION OF REMOTE ADVANTAGES AND DISADVANTAGES.
- FACT BASED INPUT COMMUNICATED TO CUSTOMS ON
IMPROVEMENTS FOR THE CURRENT AND FUTURE REMOTE
PROCESS.
- CENTRALIZATION AND STANDARDIZATION OF OPERATIONS.
- FACILITATION OF RECORD KEEPING RESPONSIBILITIES.
- FASTER RELEASE OF CARGO.
- IMPROVED COMMUNICATION WITH ALL PARTIES INVOLVED
(CUSTOMS, OTHER GOVERNMENT AGENCIES, TRADE PARTNERS,
ETC.).

LONG TERM
- NATIONWIDE STANDARDIZATION: BILLING, CLASSIFICATION,
ASSISTS, FORM 28 AND 29 RESPONSES, ADD\CVD
DECLARATIONS, OGA REPORTING, PRICING, CONSISTENT
CUSTOMS DECLARATIONS TO ALL PORTS OF ENTRY.
- COMPREHENSIVE ELECTRONIC IMPORT DATABASE: NATIONWIDE
REPORTING, AUDITS AND ANALYSIS, NATIONWIDE SELF
ASSESSMENTS, INCREASED AWARENESS OF IMPORT ACTIVITY
AND ISSUES.
- CENTRALIZED ISSUES RESOLUTION THROUGH ACCOUNT
MANAGEMENT.
- SETS THE STAGE FOR FUTURE AUTOMATION.

TRADE BARRIERS
- LIMITED NUMBER OF TRAINED PORTS.
- CURRENT PROTOTYPE ONLY ACCEPTS TYPE 01 AND 11
ENTRIES.
- LACK OF NATIONWIDE TRAINING.
- INVOICE WAIVER FEATURE NOT AVAILABLE. (NOTE: THIS
WILL BE AVAILABLE UPON PUBLICATION IN THE
REGULATIONS.)
- SYSTEM LIMITATIONS.
- SOME ADDITIONAL CHARGES TO SUPPORT REMOTE ENTRIES DUE
TO CARRIER AND FORWARDER RESISTANCE.