Tag Archive for CBP

The Current State of US Import Policy

International trade is a critical component of the US economy, with US imports alone amounting to $2.2 trillion in 2011. The US Customs and Border Protection (CBP) is the primary agent charged with ensuring the smooth flow of trade. A recent report by the Congressional Research Service (CRS) analyzed the US import process and uncovered complex challenges CBP faces in creating import policy.

CRS found that tension underlies many aspects of import policy making because of CBP’s three competing goals:

  • Facilitate the smooth flow of trade
  • Enforce trade and customs laws
  • Enforce import security laws

While trade facilitation involves promoting faster and more efficient trade flows, trade enforcement and import security involve identifying and preventing illegal flows – tasks that often involve slower cargo flows and reduced efficiency.

In order to overcome this tension, CBP’s current import strategy uses a risk management approach. This strategy segments importers into risk pools and focuses trade enforcement and import security procedures on higher-risk imports, while expediting lower-risk flows. In order to determine risk level, CBP requires importers to submit advance electronic cargo information, which is sent to the Automated Targeting System (ATS). ATS reviews this information and assigns a risk-based score to every incoming shipment. Businesses can also enroll in CBP’s “trusted trader” programs to receive low-risk trader status and become eligible for expedited processing.

CBP has also adopted a “multi-layered” approach to import policy. This means that security screening and enforcement occur at multiple points in the import process, beginning before goods are loaded at foreign ports (pre-entry) and continuing after goods have been admitted into the US (post-entry). Importers are subject to security measures such as radiation detection scanning, non-intrusive inspections (NII), trade enforcement examinations, and post-entry audits.

For more information on current CBP import policies, please read U.S. Customs and Border Protection: Trade Facilitation, Enforcement, and Security.

GAO: Give FDA More Authority Over Imported Food

The GAO (General Accountability Office) just came out with a new report calling for increases to the FDA’s authority over imported food items in our supply chains.

According to Reuters, the FDA is unable to inspect much of the imported food; in particular fresh items like fruits, vegetables, and seafood. Therefore import inspections are done by CBP, who are not charged with inspecting food for safe public consumption, but rather for “securing trade from acts of terrorism and assuring that goods arriving in the U.S. are legitimate and that appropriate duties and fees are paid.” The FDA would then need to go re-inspect the items for food safety reasons.

From the report:

Customs and Border Protection (CBP), under the Department of Homeland Security, is responsible for inspecting food imports for compliance with U.S. law and coordinating with FDA to enforce food safety laws at the border, among other things. CBP’s computerized screening system processes Food import compliance safetyall imported shipments, including food. CBP requires importers to (1) give a manufacturer identification number for each imported shipment and (2) post a monetary bond for formal entries to provide assurance that these shipments meet U.S. requirements, among other things.

But GAO said Customs and Border Patrol was not alerting FDA when imports of food arrive. Plus the FDA is not capable of inspecting the volume of fresh food imports coming into the US:

“First, imported food makes up a substantial and growing portion of the U.S. food supply, with 60 percent of fresh fruits and vegetables and 80 percent of seafood coming from across our borders,” it said.

The FDA can inspect just 1 percent of this food.

The FDA is also having other issues that are not import-related, but I’ll keep it topical for this blog’s purposes.

The FDA is working on a computer system that will predict which food imports are most likely to be contaminated. Under the new system, called “Predict,” border staff can check products in a computer database that gives a score for the risk level. The score is calculated in part based on whether the maker has a history of recalls and how susceptible the product is to contamination. High-score products can be set aside for further checks.

What does this mean for import compliance for food?

Be on the lookout for potentially increased cooperation between CBP and FDA. The GAO report says that the CBP and FDA do not share data between their systems. This could be a high priority for the agencies, especially considering the FDA is already in the midst of developing their own safety computer system (PREDICT.)

FDA may ask for the authority to leverage fines upon importers. From the report:

FDA has limited authority to assess penalties on importers who introduce violative food products, and the lack of a unique identifier for firms exporting food products may allow contaminated food to evade FDA review.”

Importers can retain possession of their food shipments until FDA approves their release into U.S. commerce. However, FDA and CBP officials do not believe that CBP’s current bonding procedures for FDA-regulated food effectively deter importers from introducing violative food products into U.S. commerce. Specifically, importers post a monetary bond for formal entries (i.e., all shipments exceeding $2,000 and certain shipments valued below that amount) to provide assurance that these shipments meet U.S. requirements. According to these officials, many importers still consider the occasional payment of forfeited bonds as part of the cost of doing business.

As always, ensure your suppliers and transporters are following safe practices when dealing with food. Particularly if you have dealt with a recall in the past, you will be susceptible to further checks once the new Predict system is in place. Keep that in mind when estimating shipment times. It may be useful to implement supply chain visibility software to keep track of your shipments and alert you in the event of delays.

Read more:

You can read the complete report on the GAO website, lots of great info in there:  Food Safety: FDA Could Strengthen Oversight of Imported Food by Improving Enforcement and Seeking Additional Authorities (PDF)

Alternately, read Reuters’ summary at:  FDA needs more clout to make food supply safer

ISF Progress Report Registration

If you have not done so already, US Customs & Border Protection (CBP) is now accepting registrations for Importer Security Filing (ISF or 10+2) progress reports from ISF Filers and C-TPAT Tier2 and 3 importers to

Requests should be sent to Progress_Report@cbp.dhs.gov.

Instructions from CBP:

Filers should provide their Company Name, Filer Code, Point of Contact, Point of Contact Telephone, and email address to which the report should be sent. C-TPAT Tier 2 and 3 importers should provide the same information except instead of a filer code they should provide the importer of record numbers they wish included in the report as well as which Tier they are.

CBP does not typically respond to registration requests unless there is a problem with the information submitted. Please expect your first report in the first week of the month after you sign up. Each report provides information going back to January, 2009.

For more information, contact Progress_Report@cbp.dhs.gov or visit http://CBP.gov.

Automate ISF Filing and Compliance

Customs 10+2 / ISF is an opportunity to enhance your company’s import compliance. Automating Import Compliance. Elements of ISF filings are the same for other import documentation.

Learn more about how to turn this challenge into an opportunity in our free video, “Strategic Opportunities that 10+2 Presents.

CBP Adds Electronic Reading Room

U.S. Customs and Border Protection launched a new Electronic Reading Room to increase access to information available from the Freedom of Information Act. Their press release is below. Visit the Electronic Reading Room at http://foia.cbp.gov.

The upgraded CBP Freedom of Information Act Electronic Reading Room will feature records and documents formerly only available through FOIA request. Documents and records responding to certain FOIA requests are now available at foia.cbp.gov. ( FOIA Reading Room )

“CBP is striving to boost agency transparency and accountability, while promoting efficiency and effectiveness through the use of technology,” said Acting Commissioner Jayson P. Ahern. “We hope the public will visit the Freedom of Information Act Electronic Reading Room for the most direct access to information and to avoid the need to go through the FOIA request process.”

The border security agency follows FOIA requirements and makes four distinct categories of records available for public inspection and copying. Consequently, documents featured in the FOIA Electronic Reading Room will consist of final opinions and orders rendered in the adjudication of administrative cases; specific agency policy statements; certain administrative staff manuals; and various records disclosed in response to a FOIA request.

The CBP FOIA Division launched the upgraded Reading Room to proactively share information that includes policies and procedures, awarded contracts and grants, manuals and instructions, final opinions, common FOIA requests, and logs of FOIA requests received by the agency.

CBP Trade Symposium: In Person and Online

Registration begins tomorrow, October 1, for the annual CBP Trade Symposium, being held December 8-10th, 2009.

As this year is the 10th year of the symposium, the exhibits and presentation is focused around the progress made in key areas since 1999. The agenda for the symposium includes:

  • Modernization
  • Trade Policy
  • Intellectual Property Rights
  • Importer Security Filing
  • North American Border Issues
  • Port Operations
  • Automated Commercial Environment
  • Importer Self Assessment
  • Business Resumption Planning
  • C-TPAT
  • Interagency Collaboration
  • The Rulings Process

The cost for attendence is $290.00. However, in addition to attending in person at the Walter E. Washington Convention Center in Washington, DC, participants can alternately attend virtually via webcast.

Webcasting
This year, we will be unveiling a new capability for the international trade community to participate in the Trade Symposium. We are offering participation via a live webcast, whereby participants may view and interactively participate in the Trade Symposium online. The cost for the Trade Symposium participation via the live webcasting is $35.00 U.S. dollars.

As a complimentary feature, participants who pay to attend the Trade Symposium onsite or via the live webcast will also be provided with a 30-day on-demand access via the Internet free of charge.

Break Out Sessions:

AD/CVD Functionality and responding to forms related to ACS Entry Summaries in the ACE Secure Data Portal Come learn about the plans for the January 2010 delivery of Antidumping and Countervailing duty functionality in ACE, and the ability to respond to forms related to ACS entry summaries via ACE.
ACE Entry Summary Post Summary Corrections and Beyond Discuss with the experts the plans for ACE entry summary Post Summary Corrections and upcoming ACE functionality.
ISA: Making the Grade for Self-Governance of Trade Compliance How do you make trade partnership work for you? CBP and members of the trade present lessons learned from implementing internal controls over customs processes to secure America.
CBP Business Resumption Planning Learn about CBP’s current business resumption planning activities and the role of the trade community in these efforts. Find out how to ensure your organization is plugged in to get necessary information from CBP should a trade disrupting incident occur.
C-TPAT—Minimum Security Criteria Enhancements
  • Updates of the Minimum Security Criteria (MSC)
  • What’s happening with Consolidator “guidelines”
  • Current efforts to strengthen the validation process regarding supply chains from Mexico
Importer Security Filing/10+2
  • ISF program updates, best practices, and lessons learned
  • ISF compliance measures and enforcement strategy
  • Discussion on program enhancements
The Rulings Process Reviewed In the last two decades alone, CBP has published more than 158,000 rulings – an average of nearly 8,000 per year! Come hear CBP’s experts walk through the process and provide tips for navigating it successfully – - there will be information of interest for beginners and experts alike.
Navigating Regulation by Multiple Agencies: How to Manage Interagency Cooperation Integrating regulatory activity at and beyond the border presents challenges for the government and the trade. Learn what’s on the horizon and contribute your ideas to strengthen interagency collaboration.

For additional information and to register, visit the CBP Trade Symposium 2009.

Bersin Nominated to Head CBP

Alan Bersin, former US Border Czar, has been nominated by President Obama as Customs & Border Protection (CBP) commissioner. Bersin is currently the special representative for border affairs, working with Mexican leaders and U.S. border-area agencies on challenges such as drugs and immigration.

Bersin will continue to advise Homeland Security Secretary Janet Napolitano on issues related to Mexico and the border, although he will relinquish the title of special representative, officials said.

“Under Alan’s leadership over the past several months, we have forged new international and domestic partnerships along our borders to strengthen security,” Napolitano said in a statement. “I look forward to continuing to work with Alan in his new position.”

Since April, Bersin was the assistant secretary for international affairs at the Department of Homeland Security.  In 1995, he was appointed to the position of border czar by then-Attorney General Janet Reno. In this position, he coordinated the efforts of the multiple law enforcement and federal agencies at the US-Mexico border.

Bersin also has experience coordinating a different disorganized group – students. As superintendent of the San Diego school district, he gained a reputation as an “energetic innovator” but clashed with teachers resistant to change.

For more details on Bersin and his nomination, visit the LA Times (although, they omit the fact that CBP also is tasked with enforcing US trade regulations!)

Los Angeles CBP Confiscates Sunglasses; Is Now “Best Dressed” Gov’t Agency

If you don’t already, I highly recommend keeping an eye on the CBP News Releases page.  About 90% of their news releases are about drug busts, but every once in a while there’s some good wacky Wednesday news.

On July 29th, CBP Officers intercepted a shipment of counterfeit sunglasses, be08032009_5f7_5fhiresaring logos resembling Coach, Chanel, and D&G. The shipment consisted of 43,480 pairs of sunglasses, with a total domestic value of $12,146- Which would be about 28 cents per pair. Talk about a deal!

Had they been authentic, the value of the sunglasses is approximately $8 million – or $184 per pair. I imagine there are some very fashionably bespectacled CBP officers in LA now!

Although CBP is typically associated with protecting our borders from danger, they are also tasked with enforcing our customs regulations – including regulations against the import of counterfeit goods. The penalties of violating these regulations can range from revocation of import privileges, to fines and even imprisonment.

For more details on this bust, visit the CBP News Release.

Know Your Suppliers & Customers

You may trust them, but the CBP doesn’t! Make sure you’re trading in accordance with U.S. Government Regulations by screening for denied parties. Learn more in our new white paper, “Six Best Practices to Improve Compliance with a Restricted Party Screening Solution.”

Import Violations: CBP Seizes Rhinoceros Beetles

Over a dozen rare rhinoceros beetles, seized by CBP last year from a post office, have found a new home at the Smithsonian in Washington DC.

When the insects were discovered in May 2008 at the Mohnton post office, an investigation by Immigration and Customs Enforcement and other agencies led to the arrest of Marc T. Dilullo, 36, of Exeter Township. He pleaded guilty in April to importing the bugs illegally from Taiwan and received three months probation and a $5,000 fine.

How much does it cost just to purchase the bugs and ship them to the US, anyway?rhinoceros beetle

I’m sure Mr. Dilullo had carefully laid plans, researching just the right kind of enormous insects to make his pets/minions. All were unraveled by one curious postal worker:

Two dozen exotic beetles discovered last year by a Berks County postal worker who heard scratching inside a box marked ”toys, gifts and jellies” …

Put that on your toast!

Although they are technically illegal immigrants, the insects have received gainful employment and will be working at the Smithsonian to demonstrate  animal diversity and threats to the natural balance.

(Glad they found a good home that is not underneath someone’s shoe.)