Today the improvement in Global Trade Management (GTM) system and the recent pandemic which has affected the supply chain across the global countries prompted most companies involved in international trade and export to look for an automated Self Filing, trade compliance management solution. Now let us see how Oracle GTM can be used for Automated Export System (AES) Filing along with Descartes Global Logistics Network (GLN).

Using Oracle GTM, companies can create an export declaration, verify the data quality, generate filing documents, and submit or file the document with US AES CBP via Descartes GLN. Descartes GLN is a third-party pass-through system that receives the filing document and submits the document with US AES CBP. Post Filing, US AES CBP either Accepts or Rejects the document and sends back the filing response status to Descartes GLN and then GLN passes the status to Oracle GTM against the export declaration filed.

Advantages of Oracle (GTM)

• All the trade compliance related to export is centralized and can be managed easily
• All necessary shipping documents also available in one single place
• Post Filing audit becomes easy and order fulfillment becomes faster
• End to end Customs Filing process is automated

High Level End to End Flow

US AES CBP Filing Responses:

Most companies are facing data quality issues because of which automated AES Filing of export declaration getting failed or rejected with anyone of below response messages. Here are few filing response failure messages most companies are facing today due to the poor data quality.

Compliance Alert Responses

AES CBP sends Compliance Alert response for multiple reasons. Here are few scenarios, when shipped product export control number wrongly reported or shipment reported late or when reported value changed post departure etc., In all these scenarios, AES accepts the reported information for hassle-free export of shipment without any additional delay and later Filer should resolve the data issues and refile.

Fatal Error Responses

AES CBP sends Fatal Error response when a missing or invalid data has been reported then AES rejects the Electronic Export Information (EEI) filed. In this case, AES did not accept the filed information and Filer needs to resolve the error and retransmit the export declaration (EEI) to AES. Filer will not get the ITN until the errors resolved by Filer

Warning Responses

AES CBP sends warning response when additional information is required on the file but the file got accepted by AES and Internal Tracking Number (ITN) sent to the Filer and any warning message should be rectified by the Filer until then AES will send reminder to the Filer.

Verify Responses

AES CBP sends Verify response for multiple following reasons, when reported shipment data one or more does not meet the criteria or parameter. Example, when reported value, quantity, or weight out of range (high or low) etc., In all these scenarios, AES accepts the reported information for hassle-free export of shipment without any additional delay and later Filer should resolve the data issues and refile.

Informational Responses

AES CBP sends  an Informational response for the Shipment, when a reported Unit of measure does not match with Unit of Measure of reported Product Harmonized tariff number. AES accepts the reported information and Filer receives Internal Tracking Number (ITN). No refile required and Filer should take a note and should maintain the quality of data for future transactions.

Why data quality check required?

Filer is responsible for the quality of data on the filed document otherwise there is a high chance of delay in Customs clearance causes all below impacts to the companies involved in export.

• US Customs might hold the export Shipments and cargo stopped at Airport or at Sea Port
• Unable to meet the promised delivery date and time to the customers
• Delay in order fulfillment increases the transportation cost
• Hefty penalties by US Customs
• Sanction risks by US Customs

Above impacts raises doubts about the data quality to the companies who wants to do self-filing. How to stop sending wrong or missing data to US AES CBP? & How to put export declaration on hold if there is any data quality issue before filing with US AES CBP ? Is there any standard or any customized solution available to improve data quality?

Solution:

Using Oracle GTM, companies should be able to control and maintain excellent quality of data. There are standard and customized solutions available to pre-check the quality of data before filing export declaration with US Customs. Standard solution comes with limited validation checks and provided by Oracle. Customized additional quality checks are Infosys developed and easily configurable to the customers. Here are few additional quality check lists provided by Infosys.

• Validate the Province Code on the Involved Parties
• Validate that IATA is available if the mode is AIR
• Validate that Declared Value is not null
• Validate that the export declaration is reviewed and approved
• Validate that the Gross weight should not be less than Net weight
• Validate that line item has Country of Origin

Conclusion:

With Infosys additional data quality checks, customers gained 100% compliance by enabling additional validation rules which are easily configurable and enabled on export declarations in Oracle GTM. These validation rules ensure the quality of data before electronically filing with US Customs thus customers enjoy 100% compliance at any given point of time with very less manual touch with increased efficiency and best use of resources. Any wrong or inferior quality of data stopped at Oracle GTM level and will not processed to US Customs until data issues are resolved.

Acronym:

GTM – Global Trade Management
AES – Automated Export System
US CBP – United States Customs and Border Protection
GLN – Global Logistics Network
IATA – International Air Transport Association
SCAC – Standard Carrier Alpha Code
EEI – Electronic Export Information
ITN – Internal Tracking Number