Overview of COAC Meeting: Quicker CHB License Checks, 10+2 Phase 2, More Risk Management

CBP to Shorten the Time for CHB License Background Checks

The new CBP Commissioner, Alan Bersin, announced that CBP would be shortening the time it takes to complete licensing background investigations for persons who have passed the Customs Brokers examination. The Commissioner noted that such investigations have sometimes been taking as long as a year, but that CBP would be putting into place systems to enable it to reach its goal of a 45-60 day turn around.

Commissioner Proposes More Facilitation for More Supply Chain Info

Commissioner Bersin also told COAC that CBP cannot further increase security unless it engages in risk management in ways that go beyond the current levels. The Commissioner stated that this would require segmentation of people and cargo into those that are trusted and those that are not. The Commissioner proposed a scenario in which the trade would share information about its operations, supply chain, trade partners, etc. in exchange for CBP facilitating the movement of the trade’s goods (while protecting confidentiality, etc.). The Commissioner noted that such a partnership could, in time, be extended to foreign partners and nations in order to allow CBP to do its inspections and segmentation as early as possible and as far away from the border as possible.

CBP Has Transitioned into Second Phase of 10+2 Enforcement, Etc.

A CBP official noted that CBP has transitioned into the second phase of its graduated enforcement of 10+2 and that while a few ports have placed holds when there is a failure to file an importer security filing (ISF), there have been no liquidated damages claims. A CBP official also reported that CBP recently made a series of presentations to certain World Customs Organization groups on harmonizing the WCO’s SAFE Framework data elements with the ISF. At the meeting, COAC adopted and submitted to CBP the recommendations of its ISF Subcommittee on the six year statute of limitations for ISF liquidated damages and ISF progress reports.

New Continuous Bond Option for IPR Samples is Increasingly Used

A CBP official discussed a recent meeting between CBP and the trade for the purpose of developing an ISA program for intellectual property rights. In addition, a CBP official reported that CBP had done some outreach to the ports and that use of its new continuous bond option for IPR samples had increased. (CBP had previously noted that use of the new continuous bond option for IPR samples was less than expected.)

Third Applicant for ISA-Product Safety Pilot Received by CBP

A CBP official announced that CBP had received its third applicant for the Importer Self Assessment-Product Safety (ISA-PS) pilot. CBP states that it is currently doing the validations for this applicant.

COAC Has Compiled Results of ACE Survey

COAC’s Automation Subcommittee has compiled the results of its survey on the economic impact to the trade of specific Automated Commercial Environment functionality and presented the results to CBP.

COAC Submits Recommendations to Streamline Credentialing

During the meeting, COAC adopted and submitted to CBP the Air Cargo Security Subcommittee’s recommendations for reducing redundancy and streamlining identification and credentialing requirements (e.g., Transportation Worker Identification Credential (TWIC), TSA’s Secure Identification Display Area (SIDA), etc.)

COAC is Reviewing Draft of CBP’s Updated Bond Directive

COAC’s Bond Subcommittee reported that CBP has provided a draft of its updated bond directive for its review and comment. (CBP has been re-writing/updating its current CBP bond directives (Monetary Guidelines for Setting Bond Amounts, #099 3510-004 and Bond Sufficiency, #099 3510-005), in order to consolidate all of the various amendments, telexes, procedures that exist for managing the CBP bond process into one directive.)

Questionnaire Ready to be Distributed to Agriculture Stakeholders

COAC’s Agriculture Subcommittee reported that a questionnaire was ready to be distributed to agriculture stakeholders on what CBP and the Animal and Plant Health Inspection Service (APHIS) can do better for the trade and what kinds of information the trade would like to receive from CBP and APHIS. The questionnaire was expected to go out to the trade the week of May 10, 2010. A government official noted that an interagency group is currently working on the review of the 2008 Lacey Act amendments required by the 2008 Farm Bill¹.

COAC’s Priority ABP Projects are COEs and Management of Riskiest Entities

COAC’s Trade Facilitation Subcommittee reported that it has identified Centers of Expertise and the management of riskiest entities as its top account based processing priorities. CBP has appointed an official to help assist in the identification of possible pilots to test the COE concept. A CBP official reported that CBP has also assigned a manager to each of the ABP projects it is considering and that a cost/benefit analysis is the expected next step.

¹This is an updated to BP’s earlier notice on this subject which stated that the review would begin in summer 2010. (See ITT’s Online Archives or 04/13/10 news, 10041305, for BP’s earlier summary.)

(See future issues of ITT for additional details on some of the trade issues discussed at the May 11, 2010 COAC meeting.)