The Customs Cargo Management Re-engineering (CMR) project will be developed in consultation with the trading community, the Australian Quarantine and Inspection Service (AQIS) and the Australian Bureau of Statistics (ABS).

Customs is working with representatives of these organisations to totally redesign and rebuild its computer-based cargo systems, looking well beyond today's needs. The strategy involves selecting the best technology on which to introduce more streamlined and cost-effective practices to ensure Australia stays up with global trends and continues to enjoy world-class cargo clearance services.

How CMR began

The need to re-engineer was identified in 1996 because of potential difficulties with our ageing and substantially separate systems. This gained impetus with Customs pioneer role in outsourcing all of its information technology services late in 1997. Outsourcing presented a valuable opportunity to appraise the systems and to review all our business processes.

Our systems were developed at different times for different reasons. For example, COMPILE, which processes import declarations was introduced in 1978 and has been much modified. (See 'Existing Customs cargo applications, page 9.) These 'legacy' systems with their 'one-size-fits-all' basis, are still the main link between industry and Customs. But, although they are still world-class, they are increasingly expensive to maintain and are unable to meet everyone's long-term needs.

Consultation with industry and government agencies to identify their cargo management needs began in March 1996. This was known as the Cargo Management Strategy.

In November 1997 we decided that a comprehensive re-engineering was necessary. This has been the subject of significant effort in Customs since March 1998 when the Office of Business Systems was created to carry out the project.

Assessing the needs

Consultations included importers and exporters, customs brokers, airlines, shipping companies, freight forwarders, port authorities, stevedores and Commonwealth agencies concerned with border issues.

The consultations established that importers and exporters wanted a fast, reliable, flexible and paperless system involving minimal government reporting requirements. A new system should allow easy access for all cargo systems users, including use of the Internet, maintain confidentiality and provide for cargo examination only when there was an identified risk risk.

Nevertheless, industry recognises that government requirements must continue to be met, such as those involving community and environmental protection and provision of important information, particularly timely and accurate trade statistics.

The key to the success of the new system lies in achieving a balance between industry and government needs. It will achieve this by a vital core strategy: direct access by government to the commercial data stream.

This is the solution that will meet government needs and allow industry to fulfil its duty with absolute minimum burden by using information that already exists rather than having to be created or duplicated in another form.

It is made possible because:

• most data held by cargo carriers and 90 per cent of data held by importers is available before the cargo arrives;
  
  
• industry is willing to make in-house data available;
  
  
• there is a proposal for sharing cargo handling data among the international trading community; and
  
  
• developments in international trading practices, which are expected to allow export data exchange between customs administrations by which, for example, export data from one country would become import data for another.

The potential to reduce industry's formal reporting that has to be specially designed to meet government requirements saves traders time and money. The other advantage is that by accessing actual trading data, Customs and other government agencies will know they are working with the most accurate and timely information available.

The CMR concept

The outcome was an agreed concept for a re-engineered cargo management system designed to meet the foreseeable needs of all parties. It has these main elements:

• direct access to cargo data for risk assessment;
  
  
• streamlined, minimal cargo reporting;
  
  
• intervention only in cases of known risk;
  
  
• periodic entry and deferred duty payment;
  
  
• electronic entry facilities; and
  
  
• sharing of cargo handling data by the international trading community.

Cargo Management Re-engineering will marry these requirements with those of government agencies, which include the need for accurate identification and control of high-risk cargo before it arrives in Australia. The new system should produce required information and services for government agencies, such as AQIS, and produce accurate and timely trade statistics.

EXIT2. An early non-standard form of UN/EDIFACT application for the report of export cargo which was introduced in 1991.

Air Cargo Automation (ACA), which processes inward air cargo reports and accepts non-standard UN/EDIFACT as well as IATA's EDI CargoImp message standard. It was introduced in 1991.

The group:

• provides high-level strategic advice to the project and identifies areas where industry experts can work with the Customs project team to greatest advantage;
  
  
• explores ways and means to gain efficiencies in cargo management through innovative and co-operative effort by all parties involved; and
  
  
• provides a high-level consultation and coordination forum to work towards achieving these efficiencies.

CMR is a big project. It will have a profound impact on the future of the Australian Customs Service and the overall efficiency of trade across Australia's borders. Its success will be measured against identified outcomes, in particular the extent to which accurate identification of high-risk cargo increases the effectiveness of intervention, and how industry requirements are improved compared with current arrangements

We will measure the increased supply of accurate information, the speed at which government processes are enhanced in regard to costs, and reductions in industry costs.

Customs is committed to ensuring that the CMR will reflect industry, community and government needs, reduce costs and increase cargo management efficiency.

It has released a Request for Information (RFI) containing detailed questions designed to clarify the needs of those who use the system.

The RFI seeks advice on communication options to improve service provision between the international trading community and government agencies. Options considered should include, but not necessarily be restricted to, direct connection and access through Communications Service Providers.

Information received will be taken into consideration in designing the proposed gateway functionality. It may lead to further processes involving the selection and possible certification of a range of service providers associated with the re-engineered cargo management system.

The RFI also provides detailed information about the program and can be obtained from: