Dive Brief:

• The United States Customs and Border Protection (CBP) is considering integrating the Automated Commercial Environments (ACE) with systems in Mexico and Canada, according to a recent article in American Shipper. CBP automated systems facilitate the electronic importing and exporting of goods and are evolving to what the CBP calls the Single Window by the end of 2016.
• Organizations like the National Customs Brokers and Forwarders Association of America (NCBFAA) feel that the process is moving too quickly and there are too many technical issues with the current system, including downtime and paperwork errors. Some users want resolution to current issues before the system expands. There are questions if the deadline of the end of the year is realistic given the complexity of the system.
• The World Customs Organization envisions single window clusters as the most appropriate application for these systems. The objective is for a country to develop a single window to harmonize data requirements for importers and exporters across the country’s relevant government agencies. The benefit remains with the interconnectedness of those systems. Critics see issues with coordination across borders.

Dive Insight:

Trepidation and complaints from customs brokers around the implementation of Single Window (SW) has more to do with maintaining the status quo rather than embracing a new system that will significantly improve a cumbersome, opaque and inefficient process. Change in any business segment is tough and it seems fashionable lately to be extra critical of government initiatives, especially digital ones, that aim to create new processes with the alleged goal of making something more efficient, secure, and cost effective. Shippers should embrace the move to SW and advocate for its integration as quickly as possible.

According to the U.S. Customs and Border Protection, SW will be the primary system where the trade community will report imports and exports and the government will determine admissibility. Manual processes will be streamlined and automated, paper will be eliminated, and the trade community will be able to more easily and efficiently comply with U.S. laws and regulations. The Journal of Transportation reports the effect of SW is to make business more competitive, cost-effective, and efficient. It also adds a level of security to the infrastructure of the global supply chain. While total global integration may take a few years to implement, there are SW services available in the US today.

Now, with a comprehensive digital tool on the near horizon, the jobs of the customs brokers will be changing. Their current leverage includes a collection of contacts and relationships, knowledge of processes and instructions needed to navigate the complex maze of international trade, and an understanding of the politics, culture and economics of their markets. It is a service that people are willing to pay for.

But perhaps not for long. A rising tide of digital native logistics professionals entering the industry will also bring change to the broker’s life. Rather than building a Rolodex (a nod to the industry veterans out there), this influx of professionals are learning about SW in college and they are hitting the ground running understanding its application. They may know no other way. Consider change coming from the top and bottom squeezing the brokers.

But some brokers are adapting to this change. “ACE has some faults that must be corrected and methods they have to ‘digitalize’ like some export processes among others,” said Humberto Caballero of the El Paso and Ciudad Juarez based Caballero Agentes Aduanales & Customs Brokers. “In Mexico we have had it since 2013 and it’s been a process with a lot of headaches and issues to be resolved, but commerce has been expedited.” Adds Caballero, “At the end of the day all actors need to adapt to change as we have no other option.”

Caballero hears from colleagues that they are worried about their jobs once the process becomes fully automated. But his view of the future is a bright one. “I look at this integration with high hopes since we could provide a better, faster, and more economical service. It is important that the customs broker diversifies to offer all services in the supply chain, including storage, warehousing, advisory, transport and management. I see how some colleagues that do not offer additional services could be left behind.”