Declaration Processing

Our Declaration Processing Solution includes the ability for importers and brokers to electronically file a declaration transaction in the CUSCAR WCO Data Model Format.  The system is tuned to operate effectively in all transportation modes.  Once filed, the system can be configured to link the transaction with the cargo report on file from the carrier/shipper.  In addition, the Tariff Management Functions of the 3CE Commodity Classification tool (our go to market partner) will determine the applicable Harmonized System (HS) code. The declaration system verifies the origin field of the filing using UN Location Codes to determine the country of origin.  (Some countries also require an origin certificate to accompany the entry transaction).  The 3CE Tariff Management Application will also use the HS code to help identify controlled and regulated goods list when they fall under the mandate of an Other Government Agency (OGA).  If so, our Electronic Single Window (ESW) can be used to prompt the trader to apply for an electronic License, Permit, Certificate, or Other (LPCO) control document.  

Our declaration processing solution will support the reporting of importation information and linked regulatory information (when deployed in conjunctin with the ESW) as well as support the importation of personal effects for home use and an assessment of whether duties and taxes will apply to high or low value goods.  The declaration processsing solution will automatically assess the valuation, origin, and commodity classification reported.  Simultaneously, the ESW can assess the regulatory information and make the appropriate linkages back to the declaration and release.

Our solution can also automate a process for temporary importations (and ATA Carnets) for goods where a percentage of duty and/or taxes is collected to accommodate a temporary importation policy on specific goods, or exempted entirely (e.g. goods returned or re-importations.)  In all instances of regulatory or trade filing, a status response or receipt message will be provided to the sender of the information in the WCO DATA MODEL format called “CUSREP” (Customs Response).

While our solution comes available with full declaration filing and processing capabilities, -for low value shipments (LVS), postal, or courier importations, our system can be configured to accept and allow a simplified entry for processing inbound parcels, and a capability to receive a valuation declaration and other supporting regulatory information.  Attachments (e.g. PDF, JPEG, or other images of scanned documentation such as invoices) can be appended to the declaration package and stored for future access and reference.  If related to controlled goods, then attachments can be stored in the ESW.  A linkage between the declaration on file and the License, Permit, Certificate, or Other (LPCO) stored in the OGA management system can be made and verified accordingly.  This can help foster greater collaboration and interoperability between Customs and Other Government Agencies (OGAs).

Our team of Customs and border subject matter experts can work alongside your staff in a design phase to decide how to configure and automate exemption requests in the declaration processing system.  As one option, this can be managed through chapter 98 of the tariff or other means.  As an example, if a returning resident imports goods that were of origin to your country, recently left or were exported for use abroad, and have not been modified or updated with new components or repairs, then in specific scearios, the goods can be imported duty and tax free.  If so, and an HS code can be created within section 98 to accommodate the reporting scenario for “Goods Returned”, then the declaration processing solution can be automated with a rule to apply a zero rate for duty (and taxes where applicable) on the goods. In another scenario, a high volume importer may request an exemption from Customs for the ongoing importation of a specific commodity if the Customs policy or program allows this.  While these scenarios include requests for orders in council, drawbacks, and other concessions, our team can work with your organization to configure an automated process.

For automated processing of expedited shipments, we would promote the use of a processing cue.  Normally these cues determine when a transaction will be processed based on a receipt date and time stamp, but we can configure our solution to use other variables to suit a variety of environments including the use of HS Code to move perishable goods or emergency relief goods to the front of the cue using our business rule logic.  Our risk management solution may be the appropriate place for the management of these rules, as expedited shipments generally fall into a low risk category.  If so, our risk management solution can be used to reduce the risk score on low risk shipments (AEO Trusted Traders may be on example).  High risk shipments (Red) can be recommended for mandatory inspection in the system based on a threshold risk score (e.g. 100pts or greater).  Low risk shipments (Green) can be recommended for release in the decalaration processing solution, -and expedited based on risk scores below a certain threshold risk score (e.g. 30 points or less).

We recognize the importance of including robust valuation functions.  Our solution provides an ability to make a formal declaration of the value of the goods / value for duty purposes.  This information can be submitted electronically, and include regulatory information.  The data is validated and stored, and verified against the customs declaration.  Essentially, our solution will automate duty/tax/fee calculation, and the ESW platform will automate a process to apply for, validate, and verify LPCO’s for controlled and regulated commodities. Prohibition lists (controlled, restricted, prohibited) goods can be managed by the Risk Management solution, being a central repository for building and managing watch-lists for use in risk based decision making on any platform used by Customs.

All of our processes are automated regardless of transportation mode (e.g. air, sea) and will use an information exchange method using EDI, XML, CSV, or an online web portal.  Our solution can also be distributed on the customs network to provide mobile access on tablets and other hardware.
Our solution can also facilitate an automated export declaration with the same functions previously noted (where applicable).

The WCO Data Model fosters customs to use a single transaction for importation, exportation, full or simplified release, for any mode of transportation.  The data model clarifies the intention of the filing with code-able elements to signify the mode of transport, and type of report (import/export/ in-transit/free zone, etc.)  As such, the full catalogue of declaration functions and processing rules will be made available on delivery.

Our delivery experts generally work with a customer during the design phase to turn functions on or off depending on the transaction type being reported.  All data reported is formatted, received, validated, stored, and processed in the WCO Data Model format where a front end data pipeline receives the transactions.  Using a series of rule edits, the system will verify and vet all the data fields for compliance (Mandatory, Optional, etc.) As an example, an HS code may be optional on a cargo report, but mandatory on an import declaration.  If not reported or egregious, the declaration transaction can be rejected and sent back to the sender for correction.  This process will ensure the data has been reported correctly and a “point of finality” is obtained on the declaration for a customs officer to review and make decisions upon.  If egregious data is provided, -no point of finality can be realized, further resulting in an inability to make informed decisions on the true nature of the shipment.  If an enforcement action ensues, then there is often a risk that the enforcement action could be appealed and overturned in some jurisdictions.  Quality data is key for sound decision making in a border environment and as such, the data validation process is key.

Want to learn more?  Contact us.