CBP Commissioner Envisions Redefined Relationship with Trade Community

(World Trade Interactive/STR)

At the annual WESCCON conference in San Diego Oct. 23, U.S. Customs and Border Protection Commissioner Alan Bersin gave a major policy speech outlining his vision for the future of CBP and its relationship with the trade community.

Reassessing Trade Processes

Bersin said CBP is in the early phases of developing several concepts that would improve trade processing.

• risk-based account management, which would seek to raise compliance by focusing on areas of risk rather than volume and by expediting trade with trusted partners through improved targeting and risk segmentation

• simplified entry and financial processes that would expedite legitimate trade, provide for earlier release decisions and streamline the submission of information and payments

• establishing centers of expertise and excellence, a virtual concentration of CBP personnel who would leverage expertise and provide uniform guidance

• finding ways to leverage the investment made in the Automated Commercial Environment to ensure that it fully supports account management efforts

“Whatever form these initiatives ultimately take,” Bersin stated, “they signal a fundamental transformation of our relationship with the private sector” into one that “significantly enhances supply chain security, improves enforcement of trade laws, and expedites legitimate commerce.”

Customs Brokers

Bersin reassured customs brokers that “the changes CBP is proposing will certainly not be the demise” of their industry. Instead, these changes will help brokers help their clients do business more efficiently. For example, brokers will be “critical” to making account management work, especially for small and medium-sized businesses. “With management by account, instead of managing shipment by shipment, we will be managing the larger final transaction,” Bersin said. “Customs will still have to determine the admissibility of shipments, but the overall process will be simpler and more efficient.” CBP also hopes that brokers will serve as the agency’s “boots on the ground” in efforts to intercept counterfeit goods and ensure import safety. “We can’t do our job without you,” Bersin said, “and I am committed to rebuilding our bonds of trust with you.”

Read the complete article here.

CBP Initiates the Center of Excellence and Expertise and Account Executive Pilots

(CBP)
US Customs and Border Protection will launch two pilots on November 1, 2010 to further strengthen the agency’s relationships with its trade and business partners.

The Center of Excellence and Expertise (CEE) pilot will develop comprehensive strategies to facilitate trade and manage risk within the pharmaceutical industry. Anne Maricich, the Assistant Port Director for Trade at the Los Angeles International Airport, will direct the pilot center.

The CEE will drive uniform implementation of policies, procedures, and technical guidance within the pharmaceutical sector. CEE’s core staff will manage risk throughout the pharmaceutical sector, by leveraging a matrix organization involving CBP personnel with pharmaceutical expertise. This initiative will also evaluate opportunities to collaborate with other government agencies on touch points involving pharmaceutical imports.

It is intended that the pharmaceutical industry and importers of pharmaceutical products will use the CEE to address systemic issues and will serve as a source of information to increase expertise throughout the agency.

The Account Executive (AE) pilot will test CBP’s ability to engage trusted partners in the electronics industry to facilitate trade while ensuring continued compliance with all import requirements. Successful engagement will enhance our ability to formalize an account-based approach to dealing with trusted (low-risk) trade partners, remove transactional hurdles and other barriers for trusted partners and enable CBP to focus its resources on higher-risk companies and shipments.

Leon Hayward, Assistant Director, Field Operations, for Trade and Cargo Security in New York City, will serve as the pilot Account Executive. The AE pilot will draw upon existing positions and areas of expertise resident in CBP today, and supplement that expertise with training related to general and industry-specific business practices, processes, and standards. The AE will build on CBP’s successful targeting skills and develop industry knowledge to allow strategic-level targeting and maintenance of high-compliance rates.

US Customs Tests Digital Imaging for International Trade

(Journal of Commerce Online – R.G.Edmonson)
Technology to reduce paper documents, streamline monitoring

Customs and Border Protection this week began testing digital imaging software in the International Trade Data System to deliver documents to agencies that participate in the ITDS program.

It is the first of a list of top-priority deliverables that agencies like the Food and Drug Administration and Consumer Product Safety Commission said they wanted incorporated into the ITDS system, which is under development as part of the Automated Commercial Environment. Although the agency made no formal announcement, Customs officials said it was a “big step forward” for ACE. Read more here.

Agencies Work Together to Protect the Public from Unsafe Imports

(CBP)

Participants included executives from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Animal and Plant Health Inspection Service; the U.S. Consumer Product Safety Commission; the Environmental Protection Agency; the Food and Drug Administration; the Food Safety and Inspection Service; the National Highway Traffic Safety Administration; the National Marine Fisheries Service and Department of Homeland Security agencies U.S. Customs and Border Protection and Immigration and Customs Enforcement.

The agency leaders affirmed their commitment to import safety by agreeing to six key principles of import safety, providing a foundation for further collaboration and cooperation among the agencies charged with protecting American consumers from unsafe imports. The principles call for:

1. The creation of an interagency forum of senior representatives dedicated to import safety cooperation;
2. Continued commitment to information sharing across federal agencies involved in import safety concerns;
3. Enhanced efforts to help the private sector comply with import safety requirements;
4. Development of common systems to exchange information;
5. Strong, consistent enforcement measures to deter imports of unsafe products; and
6. The use of risk-management strategies to streamline lawful trade.

In addition to discussing the principles, participating agencies agreed to an interagency memorandum of understanding which will improve targeting and enforcement efforts at the Commercial Targeting and Analysis Center, a fusion center for agencies to share targeting resources, analysis and expertise to achieve the common mission of protecting American consumers from unsafe imports.Agency heads and other senior leaders from 10 federal agencies met today [October 21] at the Interagency Import Safety Conference to focus on efforts to protect the health and safety of the American consumer and the environment from unsafe imports.

GAO Recommends Minor Fixes for ISF

(American Shipper)

Industry and government implementation of the Importer Security Filing this year has gone quite smoothly, but U.S. Customs and Border Protection should tighten some of the justifications for the original rule and speed up integrating the data into its antiterrorist screening system, a congressional watchdog agency said Tuesday.[...]

The GAO noted that CBP has not finalized how it will identify risk factors in ISF data and assign a weighted score for use in its automated targeting system (ATS). That means that so far the data isn’t being systematically analyzed for national security threats, although it is being used to double-check parties involved in a transaction against federal crime databases. But the submission of vessel stowage plans by carriers has led to the identification of more than 1,000 containers placed on board without required manifests, closing a potential security loophole. Read more here.

U.S. Wants to Share Border Stations

(Montreal Gazette – David Johnston)

American reaction wasn’t favourable when the Canadian Border Services Agency (CBSA) said in August that it was going to close down operations next spring at three land-border crossings with the U. S, including two south of Montreal. The U.S. Department of Homeland Security didn’t like the prospect of one-way border crossings, where people can get into the U.S., but not into Canada.

Complicating the issue was the fact that at two of the three border stations, including one of the two south of Montreal, the corresponding American stations had been undergoing expensive modernization. Ever since the CBSA announcement, those upgrades have been put on hold and the U.S. has asked Canada to consider sharing the two U.S. facilities being upgraded.

That request, though, has sparked a more wide-ranging discussion between the two countries about the future of separate border stations at small crossings in general. [...] Last month, Raphael Lemaitre, an official with the Department of Homeland Security, told The Gazette the U.S. wanted “to explore alternatives with CBSA to enable the continued facilitation of two-way traffic.” Those exploratory talks have now begun, said Sabrina Mehes, a CBSA official. In fact, she said, the future of “all smaller crossings” between the two countries are up for talks. Read more here.

CBP: Multiple Consignees and/or Consolidated Entries

(Ministère des Transports, Québec)

You will find attached an information notice sent by US Customs and Border Protection at Champlain. The document provides indications for the use of the electronic manifest by truck carriers when multiple shippers or consignees are involved. It doesn’t create new requirements but bring clarifications and answers frequently asked questions about the US manifest.

Also, we remind you that the Canada Border Services Agency (CBSA) electronic manifest will progressively be implemented from October 31st. By this date, highway carriers may begin to transmit their information through the Electronic Data Interchange (EDI) system.

The complete implementation timeline as well as many other information about the manifest are available on the CBSA web site here.

Customs Agents Grab Counterfeit Detergent in Wash.

(Associated Press)

U.S. Customs and Border Protection officers have seized nearly 1,500 cartons of counterfeit laundry detergent that arrived in Seattle by ship from China.

Included were 5,000 boxes of detergent that resembled Tide and 3,600 bags that resembled the Ariel brand. In a statement, Customs says the products not only bore protected trademarked names, they falsely claimed they originated in the United States. Read more here.

DHS Recommends Clear Goals for Importer Self Assessment

(Journal of Commerce Online – R.G.Edmonson)

Self-policing program lacks performance measures, says Inspector General

Customs and Border Protection has not clearly defined the purpose of its Importer Self Assessment, the Department of Homeland Security’s Inspector General said on Monday.

The report of the inspector general’s audit showed that Customs had not established performance measures or operating procedures for employees managing the program. Nor had it verified the effectiveness of applicants’ internal controls before admitting them to the program. Read more here.

New CBP Office Weighs Technology Investment Strategy

(Mickey McCarter — HS Today)

SBInet manager heads new effort to solve problems that plagued virtual fence, other programs

The commissioner of US Customs and Border Protection (CBP) has promoted the program manager of the agency's virtual fence project to head a new office tasked with planning for complex technology acquisition programs in general.

Mark Borkowski, who still remains manager of the Secure Border Initiative-Network (SBInet), also took on the role of assistant commissioner of Technology Innovation and Acquisition starting in July. CBP Commissioner Alan Bersin tasked him first with delivering a set of recommendations on the scope of his new office's duties, due by the end of this year. Read more here.

Is CBP “Management by Account” Becoming a Reality?

(Karen Lobdell, Drinker Biddle & Reath LLP)

The concept of Management by Account (MBA) is not new. Sometimes referred to as Account Based Processing or Account Management, the concept of viewing an importer’s business from a more holistic approach has been under discussion between the trade and U.S. Customs and Border Protection (CBP) for years. For numerous reasons, however, the idea has languished and never truly moved forward. Now, with efforts by the Commercial Operations Advisory Committee (COAC) and support from CBP Commissioner Bersin, the initiative appears to be taking off.

Read the complete article here.

U.S. Customs and Border Protection Management by Account Webinar – August 25

(CBP)

U.S. Customs and Border Protection will host a webinar regarding CBP’s Management by Account effort on Wednesday, August 25, 2010 at 2:00 p.m. (EDT).

Hear from CBP’s Subject Matter Experts on the proposals under development to advance CBP’s Management By Account approach to doing business. Topics include Centers of Expertise, Account Executive, Risk-Based Account Management, Single Partnership Program, Simplified Entry Process and Simplified Financial Processing.

The list of featured presenters includes:
• Cynthia Whittenburg, Director, Trade Facilitation and Administration, Office of International Trade
• Leon Hayward, Assistant Director, Field Operations, Trade and Cargo Security, New York Field Office
• Thomas Overacker, Supervisory National Account Manager, Office of International Trade
• Cherie Parsons, Supervisory Supply Chain Specialist, Office of Field Operations
• Lawrence Fanning, Assistant Port Director, Trade, San Diego
• Bruce Ingalls, Director, Revenue Financial Operations, Office of Administration

Space is limited for this event. To register for this webinar, please go to here no later than August 23, 2010.

We look forward to your online participation and would like to hear from you regarding suggestions for future webinar topics. Please feel free to send in your suggestions of future webinar topics via email to tradeevents@dhs.gov.

CBP Seeks Comments on Importation Bond Structure

(World Trade Interactive)

U.S. Customs and Border Protection is requesting comments by Oct. 18 on the proposed extension and revision of forms 301 and 5297 concerning importation bond structure.

Bonds are used to assure that duties, taxes, charges, penalties and reimbursable expenses owed to the government are paid; to facilitate the movement of cargo and conveyances through CBP processing; and to provide legal recourse for the government for noncompliance with laws and regulations. Any person required to post a bond to secure a customs transaction usually submits the bond on form 301, Customs Bond. CBP is now proposing to revise form 301 to capture the new types of bonds that have been authorized by law and regulation as well as to better harmonize this form with current and future automation system requirements. Section II of this form will be revised to specifically cover continuous activity code bonds for importer security filing, marine terminal operator and intellectual property rights samples. Read more and view the CBP source document here.

CBP Commissioner Addresses Trade Community Concerns

(World Trade Interactive)

In an undated letter to various trade groups, U.S. Customs and Border Protection Commissioner Alan Bersin responded to a number of issues raised by the trade community at an April 7 roundtable meeting, as follows.

• CBP expects to soon publish in the Federal Register a notice formally withdrawing its 2008 proposal to revoke the First Sale Rule.

• CBP also expects to soon publish in the Federal Register a notice addressing its July 2008 proposal to establish uniform rules governing determinations of the country of origin of imported merchandise.

• CBP is working to determine whether it could disclose, prior to seizure, information that could be used to identify intellectual property infringement and whether any legislative or regulatory changes would be needed to accomplish this task.

• CBP has drafted a proposed rule that would increase the values for de minimis and informal entry shipments and expects to conclude within the next two months an economic analysis of this proposal. Following that, the rule will have to be reviewed by the Treasury Department.

• CBP hopes to publish by the end of 2010 a proposed rule that will make “substantial” regulatory changes in order to revise and modernize the in-bond process. These changes are expected to include a transition from a paper-dependent entry process to an automated/paperless process as well as tools for CBP to better track in-bond merchandise.

• The assistant commissioner, Office of International Trade, does not review every ruling CBP issues but, in response to complaints from the trade community and Congress about policy changes being made without proper consultation, does review those rulings that result in a change of position. CBP is also developing an internal process to highlight to management any substantive regulatory initiatives, major proposed rulings and modifications of existing rulings prior to their publication.

• CBP is developing a plan to add data elements required by government agencies participating in the International Trade Data System to the data currently received in the Automated Commercial System using the ABI message layout. This data will be transferred to the Automated Commercial Environment and stored and made available to those agencies via the ACE Portal.

• CBP does have a backlog of protests and internal advice requests at headquarters, intends to add additional personnel to the branches responsible for these cases and is piloting a project to make increased use of the National Commodity Specialist Division in the analysis of these cases.

• In response to a request for Free And Secure Trade lanes to begin further back on roads leading to border crossings, Bersin indicated that CBP itself cannot make this change but “would be favorably disposed to approaching the relevant authorities with the trade community to seek solutions in specific locations.”

• On June 9 CBP’s Office of Field Operations reissued internal policy guidance directing that non-security and trade compliance inspections be conducted at ports of entry or unlading instead of ports of arrival.

• CBP will begin to offer two annual C-TPAT conferences a year, one on the West Coast and one on the East Coast or in the Midwest. Each seminar will accommodate approximately 1,200 attendees. CBP is exploring the possibility of webcasting these events.

• A task force created to develop initiatives to allow CBP to manage by account is reviewing the role of account managers, CBP’s account-based risk management efforts, simplified entry and financial processing, and ACE’s role in managing by account.

• The Office of Trade has piloted a two-week advance training session on free trade agreements, other preference programs and textiles that will be rolled out this summer for import specialists and others charged with enforcing such provisions.

• Bersin declined to allow foreign drivers to reposition in the U.S. foreign-based trailers that did not enter and/or will not leave with the same driver. The trade community argued that this flexibility would improve driver and equipment efficiency and reduce truck emissions.

CBP: Discontinuation of the Unknown MIDs

(CBP)

CBP is discontinuing the use of the unknown Manufacturer Identification Number (MID) as data to report the manufacturer (or supplier). The discontinuation will take effect September 15, 2010; after this date, entries reporting unknown MIDs will be rejected by the Automated Broker Interface (ABI).

Any questions regarding this notice should be directed to remote.filing@dhs.gov.

What We're Doing to Secure the Border

(Alan D. Bersin/John Morton — Wall Street Journal)

Last year, illegal crossings in the Southwest were down 23%, to a fraction of their all-time high

Yesterday, after months of heated rhetoric and debate about Arizona's controversial new immigration law, federal Judge Susan Bolton blocked most of SB 1070 from taking effect. The move served as an important affirmation of the federal government's responsibility in enforcing our nation's immigration laws. But regardless of what happened with this case, this administration will continue to enforce the law, just as we have been doing for the past 18 months: with unprecedented resources and a clear commitment to serious, smart and effective enforcement that has yielded important results.

We are career prosecutors who lead the two main border and immigration enforcement agencies in the United States—U.S. Customs and Border Protection (CBP), and U.S. Immigration and Customs Enforcement (ICE). We know the paramount importance of enforcing the law and we understand the federal government's responsibilities. And what we have seen on the border, at workplaces, and in communities across America in the past 18 months represents the most serious approach to enforcement we have witnessed in our careers.

Read the complete editorial here.

New Evidence That U.S. Box Scanning Plan Won’t Work

(Lloyd’s List – Roger Hailey)

A U.S. senate committee has heard expert testimony on the technical, logistical and financial obstacles confronting Washington’s policy to implement 100% scanning of maritime containers at foreign ports by the delayed deadline of 2014.

The senate committee on commerce, science and transportation was told that the Department of Homeland Security (DHS) would need “significant resources for greater manpower and technology – technologies that do not currently exist – and the redesign of many ports”.

That was the message from US Customs and Border Protection (CBP) commissioner Alan Bersin in written testimony to the committee. “Many ports simply do not have one area through which all the cargo passes. There are multiple points of entry and cargo is transhipped – meaning it is moved immediately from vessel to vessel within the port. These ports are not configured to put in place detection equipment or to provide space for secondary inspections. At these ports, scanning 100% of cargo with current systems is unworkable without seriously hindering the flow of shipments or redesigning the ports themselves, which would require huge capital investment,” he said. Read more here.

The Border Can’t be Allowed to Close Again

(Sandra Pupatello — Embassy)

It is impossible to overstate the importance of our common border with the United States.

Having grown up in Windsor, not far from the busiest crossing in Canada, I have seen with my own eyes the astounding number of trucks that use the Ambassador Bridge every hour of every day.

Frequently, there’s a wall of trucks several kilometres long waiting to get through customs. Read more here (subscription required).

CBP Detroit Implements ‘Ready Lane’ Pilot Program

(CBP)

RFID-Enabled Documents Get Special Lane During Program

U.S. Customs and Border Protection today announced a pilot program at the Ambassador Bridge for travelers with approved Western Hemisphere Travel Initiative Radio Frequency Identification (RFID) technology-enabled travel documents. The pilot program will start Monday, June 28, and last for 90 days.

CBP will dedicate lane 13, or the “Ready Lane,” for travelers entering the U.S. with a WHTI-compliant, RFID-enabled document. These documents include:

• U.S. Passport card

• Enhanced Driver’s License or Enhanced Identification card

• Trusted Traveler card, such as NEXUS, SENTRI or FAST

• New Permanent Resident card or a new Border Crossing card

“Since the implementation of WHTI in June 2009, travelers have been required to present secure travel documents that denote citizenship and identity when entering the U.S. at land ports,” said Acting Director Field Operations Roderick Blanchard. “The use of RFID technology in these documents enables CBP to further facilitate legitimate travelers as they cross the border into the U.S. This pilot program will help us determine the efficiency and effectiveness of a dedicated RFID lane for those travelers.”

During the pilot program, the “Ready Lane” will be open from 6 to 10 a.m., seven days a week. CBP will monitor the success of the lane and expand the hours of operation as needed to meet the demand for usage.

In order to use this dedicated lane, all adult passengers over the age of 16, must present one of the approved travel documents.

Travelers using the “Ready Lane” are reminded the three simple steps to follow as they approach a U.S. land port of entry with their RFID-enabled travel card:

• Stop at the entry to the inspection lane and wait for a signal to move forward.

• Each passenger removes his or her travel card from its protective sleeve and holds it up, with the flat front face of the card toward a window on the driver’s side. The RFID-enabled cards will be read automatically while the vehicle proceeds to the inspection booth.

• Stop at the inspection booth, and be prepared to present documents for all travelers in the vehicle to the CBP officer.

“The priority lane complements Michigan’s enhanced driver’s license by adding another element of convenience for travelers,” said Michigan Secretary of State Terri Lynn Land, who secured federal approval of the state’s enhanced license program.

“As the enhanced license becomes even more popular, I applaud U.S. Customs and Border Protection for exploring ways to efficiently accommodate motorists who enjoy its advantages. Our state and federal partnership is responding to the needs of travelers while ensuring the security of Michigan and America.”

CBP Northern Border Highway Carrier Conference – Aug.31-Sept.1

(CBP)

The second annual Northern Border Highway Carrier Conference (NBHCC) will be held in Niagara Falls, NY on Tuesday August 31 and Wednesday September 1, 2010.

Registration is set to open on June 16, 2010 at 12:00 eastern time, with spots being filled on a first come, first serve basis (seating is limited to 500 participants). The registration link will be posted at the stated time for your use. Your Supply Chain Security Specialist may be contacted for more information. Please mark your calendars for this important event!