CBP Processing Delays Remain a Top Concern, Impact of Retroactive AD/CV Enforcement Low, Survey Finds
Cargo processing delays and exams continued to be the largest challenge faced by importers and brokers, according to the second annual trade efficiency survey, which was released Nov. 8 by CBP. The survey, completed in July by the Advisory Committee On Commercial Operations (COAC), is meant to be a look at CBP's trade facilitation efforts and success at lowering costs of compliance. The retroactive system of antidumping/countervailing duty orders seems to have a disproportionate effect on the trade industry considering the amount of discussion and controversy the issue creates, the survey said. The survey was among a large set of COAC materials released by CBP (see 13111227).
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The report looked at survey responses for several new areas compared to last year, such as the AD/CVD retrospective system. The COAC also added questions on exports and expanded its look of the Participating Government Agencies (PGA) by including the specific agencies rather than a general PGA category. A specific section on the Centers of Excellence and Expertise was removed because there's another survey for CEE participants. The survey also updated benchmarks for the importing process including both the time and money spent throughout the lifecycle of an entry. For example,. The average delay range was 1-2 days, and the average cost of the delay was $1,000 or more, the survey said. The 2013 survey saw an increase in responses, up from 521 in 2012, to 815 responses this year.
Biggest Challenges to Facilitation
The survey found the biggest trade facilitation issue among importers, licensed customs brokers, freight forwarders, financial officers, customs compliance officers, supply chain officers and importers/exporters to be a reduction in delays due to "docs required" or holds. Brokers and importers both said that exams and a single window for government cargo processing are the next two most important issues. The survey also found that between 81 and 83 percent of “Importers”, “Importer/Exporters”, “Licensed Customs Brokers” and “Logistics Officers or Supply Chain Officers” were satisfied with overall CBP Trade Facilitation, it said.
Better descriptions for types of delays was the top choice as a way to give more visibility to the importation process, the survey said. The next highest was earlier messaging once an entry is filed. Better communications with a brokerage team ranked as the second least important item on the list, the survey found. The majority of respondents, 75 percent, said they received communication of their delays through their broker, "illustrating this relationship as a critical information source," it said. "Only 3% of respondents reported contacting the CEEs when they experience a delay," it said.
The top three most important benefits to trusted trader status were found to be delay resolution, pre-arrival cargo release and one U.S. Government cargo release, respondents said. Respondents that largely deal with industrial and manufactured materials had the largest percentage, 87 percent, participating in the Customs-Trade Partnership Against Terrorism Program, while those consumer electronics had the largest number of Importer Self Assessment participants. A total of 81 percent of respondents said there were enrolled in C-TPAT, while 14 percent, said they were in ISA.
Despite the ongoing question of the effectiveness of the current retrospective AD/CVD enforcement regime and what benefits a prospective system would produce, current AD/CVD enforcement was found to have a relatively small effect on those surveyed. Only 12 percent of respondents said they were "impacted" by the retroactive system, while 21 percent said they didn't know. "Given how much attention AD/CVD issues continue to receive, this number validates the notion that AD/CVD issues are extremely contentious as the issues draw considerable attention and controversy given the relative number of companies involved," the survey said. Among the 28 percent of respondents that they had an opinion on AD/CVD enforcement issue, 81 percent said they would prefer a prospective system, it said.
PGAs and Delays
The COAC added a more detailed look at the PGAs as a result of last year's survey, it said. While some 65 percent of respondents said they had experienced a delay in their shipments, a large number, 37 percent, said they didn't know if the goods were subject to PGA regulations and 34 percent said the materials were not subject to PGA regulations, the survey found. "As a result, we conclude there is a gap in knowledge of PGA requirements," said COAC. Following a delay, respondents most frequently reacted by contacting their broker, which also had the highest satisfaction rating, at 76 percent, the COAC found.
While delays are common, actual refusals are not, it found. "While survey respondents did not always know the cause for cargo delays/holds, the vast majority of respondents indicated that none of their PGA holds during the past 12 months resulted in an actual refusal," said the COAC. "The COAC requests that CBP share the survey information with the Partner Government Agencies, so they may have a better understanding of the impact of cargo delays/holds, (detention and dwell times) on the international supply chain."
The respondent makeup by title was:
- Accounting or Financial Officer 7 (1%)
- Consultant 7 (1%)
- Customs Attorney 4 (0%)
- Customs Compliance Officer 41 (5%)
- Exporter 3 (0%)
- Freight Forwarder 74 (9%)
- Importer 281 (34%)
- Importer/Exporter 160 (20%)
- Licensed Customs Broker 120 (15%)
- Logistics Officer or Supply Chain Officer 65 (8%)
- Other 51 (6%)
- Skipped 2 (0%)