U.S. Customs Agency advances trade modernization through global interoperability standards

9 september 2024

U.S. Customs and Border Protection (CBP) announces a significant step toward modernizing international trade. From 2024 to 2025, CBP will conduct a new phase of testing for global interoperability standards to make data exchange more secure, efficient, and transparent. These standards should not only revolutionize cross-border trade but also enable companies to process their imports faster and more securely.

What is interoperability in trade, and why is it important?

Interoperability refers to the ability of different systems and technologies to communicate smoothly. In the global trade context, customs authorities, companies and other stakeholders can exchange data faster and more securely. CBP relies on standards developed by the World Wide Web Consortium (W3C) to optimize the flow of information in supply chains worldwide. In particular, this should increase efficiency and security in customs clearance.

The role of the LEI number in global trade

A central element of this modernization strategy is the Legal Entity Identifier (LEI) number. The LEI number enables companies to confirm their identity with trading partners and authorities clearly. This plays a crucial role in global trade, as secure and transparent identification speeds up processes and strengthens trust between the parties involved.

Companies that register their LEI number can benefit from faster release processes. By using the LEI number, authorities such as CBP will be able to verify the identity of companies early in the trade process, resulting in more efficient customs clearance. This is beneficial not only for the public sector but also for businesses, saving them time and resources.

Partnerships to promote the LEI number application

CBP is partnering with the Global Legal Entity Identifier Foundation (GLEIF) and the Food and Drug Administration (FDA) for the 2024 test phase. This collaboration will ensure that the new technologies and interoperability standards are successfully implemented in various sectors, including e-commerce and food safety.

In addition, these standards are being developed to allow them to be applied flexibly to different technologies, giving companies a choice between various systems. This is particularly important for international companies that need to work with different platforms and technologies.

Advantages of LEI number registration for companies

Registering an LEI number offers companies decisive advantages in international trade. It enables faster and more secure trade processing as companies are identifiable. With increasing digitalization and global interoperability standards, the LEI number is becoming essential for any business operating in the worldwide supply chain.

By using the LEI number, companies can increase efficiency and meet regulatory requirements more efficiently. The transparent and secure data exchange with authorities also speeds up the approval of goods and reduces the risk of delays.

Prospects: Testing and implementation by 2025

CBP plans to conduct international tests in 2025 to verify data sharing between the U.S. and other customs authorities. These tests will be critical to ensure the LEI number and other interoperability standards work efficiently worldwide. Adopting these standards will set the stage for the next phase of CBP’s automated trade environment modernization, also known as ACE 2.0.

”The adoption of global interoperability standards is an essential step in meeting the demands of international trade today,” said AnnMarie R. Highsmith, Executive Assistant Commissioner of the CBP Office of Trade. ”Through these standards, we are creating a more flexible and transparent system for all stakeholders.”

Conclusion: LEI number as the key to trade modernization

The LEI number significantly supports the modernization of international trade through global standards. Companies that register their LEI number early and integrate it into their processes secure an essential advantage in global competition. Using the LEI number enables more efficient and secure processing of international transactions and strengthens trust between companies and authorities worldwide.