CBP Electronic International Commerce System
1.0 Executive Summary
In 2008, “U.S. Customs and Border Protection (CBP) collects over $30 billion annually, the second largest revenue generator for the U.S. Government” ("Overview of revenue:," 2008). Believe it or not, the U.S. government is behind the times in terms of technology when it comes to commercial trade and the potential for revenue has grown exponentially. Many partakers in this industry are greatly affected by this lack of updated technology and would jump at the opportunity to invest into a new program that would allow for more efficiency.
The companies participating in commercial international trade need one source that ...view middle of the document...
CBP is charging $2,500/month for large customers (companies that employ 500 or more people) and $1,500 for small customers (companies that employ 499 or less people). Larger customers in the international commerce market, such as FedEx Corp, Livingston Intl, DHL Global Forwarding, and Duty Free Americas, have either purchased an electronic system that programmers are offering from other companies or have built their own program which allows them to connect to the CBP system. They are now ready to subscribe. Although the CBP does not require smaller participants in the industry to tap into the electronic way of doing things, it would benefit them financially and would assist in the efficiency of their operations. Simply put, the CBP will have less manual work if there are less companies continuing business in a manual way. Marketing through education will be a driving factor of pushing these businesses to become electronic and subscribe to the CBP Electronic International Commerce System.
2.1 Market Summary
The CBP will essentially want to reach out to any parties which hold a type 301 bond with the U.S. government.
2.1.1 Market Demographics
The profile for the CBP Electronic International Commerce System subscribers consists of the following geographic, demographic, and behavior factors:
* Complete continental and offshore U.S. territories including Puerto Rico, Hawaii, and Alaska
* Specific interest will be placed on the northern border, southern border, and main ports used for ocean importing and exporting.
* The total target market 1000 companies:
- Roughly 50 importers bringing into the U.S. commodity without hiring a U.S. Customs broker (50 small companies)
- 100 air, vessel or vehicle carriers who transport cargo domestically "IN BOND" from one state to another (5 large companies – 95 small companies)
- 200 warehouses that are, or want to become, a Customs bonded facility (50 large companies – 150 small companies)
- 300 air, vessel or vehicle carriers who transport cargo, or passengers, from a foreign destination to the United States (50 large companies – 250 small companies)
- 350 customs brokers that are hired to clear goods through CBP (50 large companies – 300 small companies)
* 5% - Importers bringing into the U.S. commodity without hiring a U.S. Customs broker
* 10% - Air, vessel or vehicle carriers who transport cargo domestically "IN BOND" from one state to another
* 20% - Warehouses that are, or want to become, a Customs bonded facility
* 30% - Air, vessel or vehicle carriers who transport cargo, or passengers, from a foreign destination to the United States
* 35% - Customs brokers that are hired to clear goods through CBP
Larger companies will invest first. Only after proving the profit from increased efficiency and obtaining the amount needed to invest will smaller businesses subscribe to the CBP Electronic International Commerce...