Senate Finance Urges CBP Commissioner Bersin to Focus on Trade Facilitation, Etc.

(Bersin assumed the role of CBP Commissioner after being recess appointed by the President in March 2010. According to a Senate Finance Committee press release, Bersin will require Senate confirmation to continue as CBP Commissioner beyond 2011.)

Highlights of the written hearing statements, as well as the question-and-answer portion of the hearing, include:

Senate Finance Committee

Hope for Action on Customs Reauthorization Bill

Both Chairman Baucus and Ranking Member Grassley discussed the Customs Facilitation and Trade Enforcement Reauthorization Act, which they introduced in 2009.

Senator Grassley stated that he hopes to see the Committee consider S. 1631 in a markup before the August recess.

Concern About Trade-Security Balance, ACE Cost/Delay

In his written statement, Ranking Member Grassley (R) emphasized the importance of restoring the right trade-security balance and expressed concern with the budget overages and delays in full implementation of the Automated Commercial Environment and International Trade Data System.

Senator Grassley also expressed concern about the level of consultation between CBP and congressional oversight committees, as well as consultation between CBP and other federal agencies. Senator Grassley noted that over the past few years there have been instances in which CBP issued a proposed rule without consulting appropriately, and as a result, CBP was forced to withdraw or suspend its rulemaking.

Request for Metrics to Measure Trade Facilitation Progress

After being questioned by the Committee on how CBP can measure success on the trade side, Committee Chairman Baucus asked the Commissioner to submit a list of six of the most important measures for determining whether progress is being made in trade facilitation. The Chairman noted that every six months he would be reviewing CBP’s success measures with the Commissioner.

Commissioner Told to Keep Committee Informed

Chairman Baucus strongly warned the Commissioner to keep the Committee informed, in advance, of any significant changes affecting the trade.

Business activities, trade experience questioned. During the hearing, Chairman Baucus and other Senators continued to express concerns about the Commissioner’s failure to properly complete and maintain Employment Eligibility Verification Forms (I-9s). One Senator also asked the Commissioner questions about certain port-related real estate investments. The Chairman also questioned the Commissioner’s lack of significant trade-related experience.

CBP Commissioner Bersin

Overall Review of CBP’s Trade Functions Ordered

During his testimony, the Commissioner noted that he has ordered an overall review of CBP’s trade functions which will look at the issues of trade resources, processes, and procedures, and CBP’s relationships with other federal agencies. The Commissioner noted that CBP is also looking at the level of resources that it is devoting to trade promotion and enforcement, but does not yet know whether additional resources will be needed.

C-TPAT, FAST Need to Go to Next Level

According to the Commissioner’s statement, one key element of the risk segmentation strategy is the creation of trusted traveler and shipper programs, such as the Free and Secure Trade (FAST), Secure Electronic Network Traveler Rapid Inspection (SENTRI), U.S.-Customs Partnership Against Terrorism (C-TPAT), etc. The Commissioner stated that CBP now needs to take these and similar programs to the next level.

Importance of Risk Segmentation Emphasized

The Commissioner, in his written statement, noted that the challenge for CBP, in coordination with other agencies of government both inside and outside the U.S. is to segment the flows of people and goods by the level of risk so CBP can facilitate the movement of people and goods about which hit has sufficient, reliable information, and focus its enforcement resources on those people and goods about which CBP knows nothing or has derogatory information.

AD/CV, IPR, Product Safety Enforcement to be Examined

In response to questions, the Commissioner noted that as enforcement of antidumping/countervailing duty orders, intellectual property rights, and product safety are all part of the revamping of CBP’s mission on trade and all need to be examined by CBP. Among the possible tools mentioned in the AD/CV area by the Commissioner were uniform procedures, creating an annual report detailing violations, collecting cash deposits from importers suspected of trying to evade duties during investigations, etc.

More Inter-agency Cooperation Planned

The Commissioner discussed the recent memorandum of understanding between CBP and CPSC under which CPSC staff will be co-located at CBP’s Commercial Targeting and Analysis Center. He also noted that CBP, CPSC, and other agencies have agreed to meet with a group of agencies in order to explore how to take a more unified U.S. government approach to IPR protection and product safety.

(See ITT’s Online Archives or 04/27/10 news, 10042705, for BP summary of the MOU.)

Trade Community Concerns Discussed

In his written statement, the Commissioner addressed certain concerns of the trade community, including:

Trade facilitation. The Commissioner acknowledged concerns that CBP has not given sufficient priority to its trade facilitation mission and noted that S. 1631 reflects such concerns and he looks forward to working with the Committee to address many of the problems S. 1631 seeks to address.

Burden on trade. In addition, the Commissioner stated that CBP has asked the trade to assume its fair share of the burden (to exercise reasonable care in customs matters, to provide information to better understand the parties to a transaction, and invest its resources) and CBP needs to strive to continually provide an environment built upon predictability, transparency, and uniformity in the importing process, including, when possible, simplified commercial processing.

Consultation. The Commissioner committed to improving its communication and consultation with all of its stakeholders. He noted that this includes invigorating the role of the Departmental Advisory Committee on Commercial Operations of U.S. Customs and Border Protection and Related Homeland Security Functions (COAC) and ensuring adequate consultation on significant rulings and regulations with stakeholders inside and outside of government.

(See ITT’s Online Archives or 05/13/10 news, 10051320, for previous BP summary on the nomination hearing, with links other related BP summaries.)

Hearing written statements, webcast, etc. available at http://finance.senate.gov/hearings/hearing/?id=54efe4d4-5056-a032-5234-7290304de633.