CBP Highlights Recent Actions on C-TPAT, Account-Based Security, Etc.
On July 8, 2011, U.S. Customs and Border Protection posted its latest edition of Frontline (Vol. 4, Issue 2), CBP's quarterly magazine on border security. Among other things, the magazine highlights CBP's recent actions towards expanding C-TPAT mutual recognition; arranging trusted traveler programs; moving to an account-based approach to security; and on leveraging the role of the broker.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The following are highlights pertinent to commercial trade:
Expanded C-TPAT Mutual Recognition to NZ, Granted Tier 2 Status
In March 2011, CBP Commissioner Bersin and New Zealand Ambassador to the U.S. Moore signed four bilateral agreements to advance trade and security between their nations. One of these agreements formalized Tier 2 status for New Zealand's Secure Export Scheme members in CBP’s Customs-Trade Partnership Against Terrorism (C-TPAT). The granting of Tier 2 C-TPAT status translates into generally greater certainty about the movement of members’ goods to U.S. markets. CBP notes this was the first time that another government’s secure-supply-chain program merited this level of recognition1.
(See ITT's Online Archives or 03/30/11 and 05/18/11 news, 11033016 and 11051819, for BP summaries of the U.S. and New Zealand's expansion of C-TPAT mutual recognition.)
Moving Away from Transaction-by-Transaction to Account-Based Approach
CBP Commissioner Bersin has stated one of the things that CBP will be doing differently to improve trade facilitation is moving away from its current transaction-by-transaction processing approach. To fully facilitate legitimate trade and help promote U.S. economic competitiveness, Bersin stated CBP needs to start treating companies in a more holistic manner using an account-based approach.
CBP will soon be looking at how companies manage their overall operations as opposed to focusing on one transaction at a time. In the future, when CBP makes decisions on how to evaluate risk, compliance, and enforcement, it will need an overall view of a company. CBP will need to understand all of the issues that the company faces regarding security, trade, logistics and finances.
New Approach Would Allow CBP to Focus on Security and Trade Enforcement
CBP’s shift to an account-based approach is similar to the way CBP currently deals with partnership programs and should help bridge the gap between security and the facilitation of trade. An account-based approach will not only provide CBP with better information, it will produce a partnership that has the potential to enhance the layers of security that already exist. As a result, as the partnership grows, CBP's focus on security will become intertwined with its focus on trade enforcement. However, CBP notes that the success of its new approach to trade hinges on a number of factors, most importantly on CBP’s relationships with other government agencies.
(Note that as part of its trade strategy, CBP is currently using the account-based approach to streamline trade processes, which includes enhancing ACE capabilities. CBP states that it is still taking trade community comments and suggestions on its trade strategy at cbptradestrategy@dhs.gov. See ITT's Online Archives or 04/21/11 and 05/23/11 news, 11042117 and 11052303, for BP summaries of CBP's 2009-2013 trade strategy and the trade's suggestions.
In June 2011, CBP officials stated CBP is considering to make permanent, two "management by account" pilots, the Centers for Excellence and Expertise (CEE) and the Account Executive (AE). See ITT's Online Archives or 06/13/11 news, 11061303, for BP summary.)
CBP Considering Leveraging Role of Brokers to Reach Small & Medium Importers
CBP is considering “leveraging brokers" to reach small- and medium-sized importers that would not otherwise be accessible to programs like Importer Self Assessment (ISA), a voluntary approach to trade compliance. Small- and medium-sized importers may not have the ability within their companies to engage in putting the controls or practices in place.
(In April 2011, CBP discussed its new broker revision initiative in which CBP states it expects to review the C-TPAT-broker partnership, use of penalties and filer code misuse, the frequency and content of the Customs brokers licensing exam, etc. See ITT's Online Archives or 04/15/11 and 10/29/10 news, 11041523 and 10102910, for BP summaries of CBP discussing the broker revision initiative and of a new role for brokers.)
Working on Trusted Traveler Program w/ Korea, Possibly Singapore, Japan
In April 2011, CBP and the Korea Immigration Service signed a joint statement agreeing to work toward mutually recognized, expedited international travel initiatives, making Korea the first Asian country to commit to a trusted traveler arrangement. CBP is also in discussions with Singapore and Japan to develop trusted traveler arrangements.
(See ITT's Online Archives or 04/27/11 news, 11042716, for BP summary of CBP and Korea signing the joint statement toward mutual trusted traveler recognition.)
1Certified C-TPAT companies that successfully undergo a validation are eligible to receive Tier 2 status (if minimum security criteria are met) and to receive the associated benefits.