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Bersin Wants More Focus on the Ports - Expediting Goods, Cutting Costs, Etc.

On April 4, 2011, U.S. Customs and Border Protection Commissioner Alan Bersin spoke at the National Customs Brokers and Forwarders Association of America (NCBFAA) Annual Conference, where he discussed the need to expedite how legitimate goods move through the ports, including trimming transaction costs, and coordinating with other government agencies1.

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Agency Continues to Focus on Eliminating Dichotomy Between Security, Trade

Bersin reiterated that the agency is focusing on eliminating the dichotomy that exists between security and facilitating lawful traffic. This is a restructuring of CBP thought. Security and expediting traffic are not mutually exclusive -- it is only by expediting legitimate traffic that CBP can raise its security profile.

(See ITT’s Online Archives or 06/24/10 news, 10062414, for BP summary of Bersin saying trade and security cannot be seen as opposites.)

Focus Must Shift from “Risk & Segmentation” to “Port & Post Entry” Issues

Bersin said the next level of the dialogue between the agency and stakeholders has to go beyond the risk management notion, beyond traffic segmentation, to the actual movement of commerce to the physical ports of entry and what happens post entry.

CBP cannot accomplish its goal of protecting the U.S. homeland from dangerous people and goods only at the physical line. The U.S. has 326 ports of entry (air, land, and sea), most of which have cargo coming through them in some form. Most of the efforts since 9/11 have been directed to securing the global supply chain away from the physical border. However, what hasn’t been given enough attention is how to move the commerce through the ports of entry once they get there.

(See ITT’s Online Archives or 09/30/10 news, 10093015, for BP summary of Bersin saying CBP needs to identify risks early on, far away from physical borders.)

Need Processes to Expedite Movement of Legitimate Trade at Ports

CBP needs to address how it can ensure that once goods get to a port of entry that they have the processes needed to expedite movement of legitimate trade. CBP is looking to identify ways in which in it can simplify and expedite processes of movement of trade.

Must Coordinate with Other Agencies Better When Goods Stopped at Border

Bersin said that the agency is facing several challenges in meeting its goal of expediting movement of legitimate trade. For example, CBP is not the only agency that is charged with border-related judgments. There are 48 agencies that have the ability to direct CBP to stop containers, trucks, etc. as CBP is the executive agent for these agencies. Bersin noted that 2 out of every 3 examinations at the physical ports of entry for trade purposes are ordered by an agency other than CBP.

The government needs a more coordinated way to deal with containers that are stopped at the ports of entry.

CBP has begun to coordinate with other government agencies that are involved with moving commerce, such as meetings like the Import Safety Conference that was held in October 2010 with senior leaders from 10 federal agencies2. He said that such coordination needs to become the rule and not the exception.

(See ITT’s Online Archives or 10/22/10 news, 10102210, for BP summary of the 10-agency agreement on import safety that was reached at the October 2010 meeting.)

Need Coordinated Approach to Cut Transaction Costs 10-15%

CBP is trying to drive the transaction costs of doing business at U.S. borders down 10-15% in order for U.S. businesses to be more competitive. He said that the agency cannot do that if the government does not have a coordinated approach to moving traffic once it arrives at the border.

CBP, Other Agencies Agreed to Create a Dispute Resolution Mechanism

Bersin noted that at the October 2010 meeting, the 10 federal agencies agreed to create a mechanism -- the Border Executive Integration Unit - to resolve disputes among the agencies regarding actions taken at the port, etc. Currently, there is no mechanism for disputes among agencies to be resolved.

(See ITT’s Online Archives or 03/07/11 news, 11030729, for BP summary of Assistant Commissioner Winkowski discussing the benefits of the protocol for resolving disagreements.).

ACE DIS, Standardized Data Set, Interoperability Expected by End of August

Bersin also discussed the Automated Commercial Environment (ACE) program. He noted that Congress lost confidence in CBP’s ability to manage ACE, as did PGAs which started developing their own systems.

CBP has been working towards creating the single-window that was promised by ACE/ITDS and to restore confidence in the program. CBP began work on implementing the following 3 projects in order to restore confidence in ACE and stop PGAs from migrating to their own systems:

  • Document Imaging System
  • Standardized Data Set
  • Interoperability

Bersin said he hopes to have all 3 of the above completed by the end of August 2011 in order to meet the ITDS requirements. Once this is completed, Bersin intends to push the idea one single-window to the PGAs. He will then begin urging to the trade to take another look at ACE and use the program.

(See ITT’s Online Archives or 03/02/11 news, 11030232, for BP summary of ITDS Board making recommendations on the development of ACE/ITDS, included DIS and interoperability.)

1Currently, 48 participating government agencies (PGAs), including CBP, are working together to implement the International Trade Data System (ITDS)

2The 10 agencies are CBP; Immigration and Customs Enforcement (ICE); Consumer Product Safety Commission (CPSC); Environmental Protection Agency (EPA); Food and Drug Administration (FDA); Food Safety and Inspection Service (FSIS); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Animal and Plant Health Inspection Service (APHIS); National Highway Traffic Safety Administration (NHTSA); and National Marine Fisheries Service (NMFS).)

(See ITT’s Online Archives or 04/11/11 news, 11041126, for BP summary of ITDS Board reporting progress with certain PGAs, etc.

See ITT’s Online Archives or 03/08/11 news, 11030832, for BP summary stating that ACE was on an accelerated development schedule.

See ITT’s Online Archives or 03/31/11 news, 11033120, for BP summary of CBP announcing that DIS deployment is targeted for summer 2011.)