Mr. Douglas Browning

I've been looking forward to this event and the opportunity to meet and speak with you, especially because the Trade Support Network plays a very important role in Customs modernization. I want to express my appreciation and pledge my support for this partnership as we enter the crucial development phase of the ACE project.

The successful and timely design and implementation of ACE is a priority of the U.S. Customs Service. It's an important project for our country and for the future of global trade. Modernization's central information and technology theme is: "To provide the right information to the right people at the right time and place."

This approach responds to a common need of cargo, passenger, and enforcement functions for role-customized, task-specific information delivered on demand, on site, in the field. To implement this vision, Customs must continue to focus on information sharing and to invest in data management, information analysis and distribution. Collaborative information exchange and technology to interpret and exploit the data obtained will be key to mission-critical activities.

Modernization of technology and business processes will also drive significant changes in organizational relationships, to transform everyday operations affecting both you and Customs employees. Modernization must provide effective training and tools that leverage workforce skills and support collaboration across the organization and with the trade community, regardless of location.

Modernization should - if done right - reform the way Customs and other government agencies do business with the trade. It should assist the government in the advance collection of information for targeting of high-risk cargo to better address the terrorist threat. Of course, Customs cannot achieve this alone. The government and the business community must join together in support of our common goals.

I'd like to highlight the fact that participating with us at this meeting are representatives from a number of government agencies. I am very excited about the International Trade Data System (ITDS) project and its integration with ACE. The concept of ITDS is extremely powerful - a single data stream supplying the information needs of multiple federal trade agencies. In standardizing the process, ITDS removes the confusion and complexity of international trade, enabling more U.S. businesses to broaden their markets to buy and sell globally. For the government, ITDS will provide more current and accurate information for revenue, public health and safety, enforcement activities, and statistical analysis and will significantly reduce costs. Critical to our collective success in ITDS will be our agencies individually ensuring the groundwork is in place to support this system.

In addition to the wide-reaching government partnership represented by ITDS, we need the guidance and input of the business community to meet our goals, and to build the best system possible. We will need the funding to do this. And we need the continuing support of the TSN. I have heard great things about the TSN - that you have submitted over 130 user requirements to date and are actively involved in all phases of ACE development. Your involvement as modernization stakeholders and partners is critical. Thank you for taking the time and spending the money to support this vital project.

I'd like to highlight today the importance of your continued involvement in ACE as well as in Customs anti-terrorist initiatives. We plan to share things with you early, in draft form so that your input may be considered. As you discussed on Tuesday, we have drafted some operational, financial and legal policies and we particularly interested in your thoughts on these ideas. The goal of these ideas is to rely on account management to streamline the commercial import process, lower the cost of trade compliance, and increase customer service for the trade community.

ACE will be a knowledge-based system that will provide a central repository for data required by the government. This data repository will be a critical link toeffective targeting and border protection. This data will be accessible by Customsand other agencies through the use of integrated analytical tools to support a variety of targeting and data analysis efforts. Speaking of targeting and border protection, I have decided that in order to meet the unique challenges caused by 9-11, we will be taking a critical look at the Customs strategic plan to ensure that it reflects current priorities. The Customs strategic plan will outline the ways in which ACE will be fully leveraged to meet anti-terrorism objectives. Like it or not, the reality is that the terrorist attacks of September 11th forever changed the relationship between the international trade community and the U.S. Customs Service. I don't have to remind anyone here that during the initial days of Level One Alert, movement across our border slowed significantly. The delays threatened to shut down the critical flow of inventory between foreign parts suppliers and manufacturers in the United States.

We need to revolutionize the way Customs does business with the trade. We need additional partners to achieve a higher degree of confidence in the supply chain. We need U.S. businesses as a partner. It is time for a lasting partnership between Customs and industry to ensure both security for our Nation, and the smooth flow of commerce across our border. This is the Customs Trade Partnership Against Terrorism. Under C-TPAT, companies have committed to improving the security of their shipments and the supply chain. In return, Customs gives them faster processing at the border. C-TPAT is a program that applies to all commercial shipments - at all ports of entry - whether the shipments arrive by land, sea or air. Programs like C-TPAT and others are integral to ACE. The success of C-TPAT and other initiatives depend on the support of every segment the trade community. We'd like you to use the TSN as a vehicle for you to input your ideas about anti-terrorism.

At the same time we're providing security at the borders, we do not want to compromise the flow of commerce to achieve that security. We must be careful not to sacrifice our openness for our security. And so we will strive to keep America safe and secure without harming the flow of trade. I believe we can do that with the use of technology for inspections, with more advanced information, with smarter risk targeting and with powerful tools such as ACE and with the cooperation of our stakeholders. Our common goal is to implement a system that helps us achieve our trade and border protection objectives, which will promote our nation's security while expediting the flow of commerce across our borders.

At this time, I'd like to hear your questions.