Integrated Cargo System Business Continuity Plan

1. Integrated Cargo System Business Continuity Plan

2. Background • The Integrated Cargo System (ICS) was implemented in October 2005. (Imports functionality) • The ICS is the system used by all external stakeholders that wish to move legitimate cargo across Australia borders (imports and exports)

3. Contingency arrangements were identified as inadequate. Lloyds List Daily Commercial News – 18 November 2005 Coles Myer still has 40,000 boxes sitting at the docks Coles Myer said it was waiting on "probably 40,000 containers" at Australian ports to be cleared by the Australian Customs Service, all delayed as a result of the Integrated Cargo System. The company told reporters after its annual meeting yesterday (Thursday, November 17) that its nonfood stores, including Target, Myer and Kmart, were suffering due to the backlog of cargo and high fuel prices. Coles Myer chief executive John Fletcher said the imports represented inventory that he would rather have in the stores.: "As the biggest importer of containers in this country, what's happened with Customs has affected us, but it's affected every retailer," he said. He hopes the backlog of containers can be resolved shortly – and in time for the vital pre-Christmas trading. The numbers were coming down each week, he acknowledged. Mr Fletcher said the company expected to meet its full-year earnings of $769m, despite expectations for ongoing tough retail conditions.

4. The ICS BCP review commenced in May 2006 with Industry and AQIS Review of the Integrated Cargo System Business Continuity PlanScope of the ReviewTo identify and reflect industry business practicalities, while maintaining Customs and AQIS requirements for meeting border protection and revenue responsibilities, in an agreed business continuity plan for imported cargoStage 1Discussions and information gathering with individual industry sectors.Stage 2Internal review and discussionStage 3Customs and AQIS positionsStage 4Industry response and final positionStage 5Testing of the BCP

5. New ICS BCP (Imports & Exports) was implemented in Dec 2006 after Customs, Industry and AQIS endorsement

6. BCP has been used since Dec 2006 most noticeably to cover a Qantas outage.

7. What has changed ? • Flexible business rules remove dependencies. • Move import cargo underbond without reference to the cargo report. • Industry can lodge cargo reports without reference to the higher level reports. • If certain criteria are met, Import Declaration cargo can be released without reference to the Cargo Report

8. Lodgement of contingency data • EDI users - Software developers have been encouraged to provide EDI contingency functionality to EDI systems. • Customs Interactive or EDI users • Download the transaction file from www.cargosupport.gov.au • Input the data

9. Contingency data can be lodged via email. • A “help” attachment is also available on the Customs website. • Service Levels - Depending on the transaction type, 5 minutes to 1 hour to receive status.

10. Other changes • Centralised contingency management at the Customs Information and Support Centre (CI&SC) in Sydney. • Automated internal procedures for processing contingency data.

11. “Urgent Customs Clearance” contingency management service • When industry system problems occur. • When ICS is available but does not meet business needs – functional problems or slow response

12. ICS BCP Scenarios • ICS Unavailable; • Clients system or Internet service provider unavailable; and • Urgent Customs Clearance (when client systems and the ICS are available).

13. Phase 2 2 Hours Phase 4 24 Hours Phase 1 1 Hour Phase 3 4 Hours - Export Declarations and consolidations - Under bond Moves to licensed premises - Deferral of OBL report to 24 hours from first port arrival or when ICS is available - Import Declaration processing for flights/ vessels part processed in the ICS. - Screening of Cargo Reports - Cargo not requiring an Import Declaration is released. Screening of Import Declarations. OBL Reports required by Shipping Companies for vessels 24 hours out from first port arrival. ICS Unavailable BCP Phases

14. Clients system unavailable • Industry responsibility to have own contingency plans for system problems. • Customs will attempt to assist when clients systems are unavailable. • Greater assistance provided where contingency data provided electronically.

15. Clients should: • Notify Customs immediately via the “Urgent Customs Clearance” support number (02-6275 6100); • Identify what actions are being taken to rectify the problem;

16. Identify urgent transactions that need to be processed; and • Identify if they can provide contingency date in electronic form.

17. Customs will: • Assist clients through escalation of issue to internal technical support areas; • Provide contingency releases for urgent transactions;

18. Assess down stream impacts on clients and take appropriate communication and procedural action; and • Provide assistance to manually clear transactions (pending resource availability) where contingency data is not available electronically.

19. Urgent Customs Clearances • The CI&SC maintains the “Urgent Customs Clearance” support number (02-6275 6100) • Can be accessed by clients where: • ICS is available; • the relevant phase of an ICS outage has not been invoked (for cargo referred to on the next page).

20. Should be used by clients where: • Cargo may miss its carrier (export flights/vessels, truck booking system); • Perishable goods will be damaged if subject to delay, or • Cargo requires immediate delivery. For example, urgent medical supplies, hazardous materials and livestock.

21. Hard Copy paper lodgement • Not encouraged or necessary in most scenarios. • Requires specific approval by Customs. • High resource cost to Customs/AQIS and industry.

22. Forms are available on the Customs website • Final safety net should Customs electronic functionality fail • Service Levels - best endeavours.

23. Customs notification of status Customs/AQIS will send status to: • The reporting party via return mail (excel file); • Other relevant establishments; and • Regional Customs/AQIS staff for manual intervention (if required)

24. Future Development • BCP Website • Portal for lodging contingency data • Access with a secure logon (provides security of lodgements and non-repudiation) • Diagnostics Facility

25. Community Protection Module • Will be available on the Customs website • Ability to identify what community protection questions are required before contingency import declarations are lodged

26. Industry Actions • Download and maintain electronic contingency files from the Customs website. • Test Contingency procedures. Individual or with Industry sector partners. • Identify if workshops, facilitated by Customs, are required.

27. EDI users – Check with your software developer on progress of developing and deploying contingency functionality. • Maintain a copy of the Australian Customs Cargo Advice on the BCP (27/06). This provides all website links and contact details.