A major hurdle CBP will face in implementing a Customs-Trade Partnership Against Terrorism (C-TPAT) for exports will be convincing industry that the program adds value, said industry and government officials at the Feb. 20 meeting of the CBP Advisory Committee on Commercial Operations. The COAC Trusted Trader Subcommittee spent the past few months reaching out to exporters to find out how to make C-TPAT for exports work. The lesson was that securing the supply chain isn’t enough; exporters will need to see tangible benefits before they sign on, they said.
Drug trafficking activity through countries that do not produce the drugs has increased in recent years, said CBP in a Customs-Trade Partnership Against Terrorism alert. Pointing to the Port of Guayaquil, Ecuador, CBP has "noted an alarming uptick in the number and size of drug trafficking operations targeting legitimate cargo" at the port involving corrupt officials, it said. "The increase in drug trafficking activity at the Port of Guayaquil is part of a larger shift that has seen traffickers bypass the traditional drug-producing countries of Colombia, Bolivia, and Peru in favor of Chile, Ecuador, and Panama." The "non-drug-producing countries accounted for nearly 66 percent of seizures compared to 34 percent from the traditional cocaine producers," the agency said. "Smugglers may have started to favor these countries because they are less focused on fighting drug trafficking compared to countries such as Colombia, where trafficking is a primary focal point of government policy and enforcement efforts. "
The Food and Drug Administration on Feb. 20 formally announced the beginning of its Secure Supply Chain Pilot for expedited entry of drug products, listing 13 companies that it approved for participation. Under the program, which began earlier this month, drug importers that meet certain requirements receive expedited entry for up to 5 specific drug products per importer. The drugs must be imported from a manufacturer identified on the importer’s initial application to participate in the pilot, and must arrive through a designated port of entry, use the identified customs broker or entry filer, and must be intended for a designated ultimate consignee. The pilot is scheduled to run until February 2016.
CBP posted its draft agenda and other documents for the upcoming Advisory Committee on Commercial Operations of Customs and Border Protection (COAC) meeting on Feb. 20, which include the "foundational principles required to position the U.S. government to efficiently manage strategic cross border issues in a manner that reduces the cost of doing business" related to exports. Other documents include draft recommendations, and other documents on trade modernization, the global supply chain, trade enforcement and other topics. The draft agenda is (here). The principles for a "One U.S. Government at the Border Cooperation for Exports" is (here).
CBP's official notice beginning a pilot program that would test a combined Customs-Trade Partnership Against Terrorism (C-TPAT) and Importer Self Assessment (ISA) was delayed in order to include information on participation by other government agencies, said CBP in a document released ahead of the Feb. 20 Advisory Committee on the Commercial Operations of CBP (COAC) meeting. CBP said in November it planned to officially request pilot participants for the program, known as "Trusted Trader," by the end of 2013 (see 13111920). Another COAC working group said it is working to develop recommendations for customs broker permitting updates by May.
CBP highlighted the information sharing efforts at the Port of Antwerp in Belgium as a cargo security best practice in a Feb. 12 Customs-Trade Partnership Against Terrorism (C-TPAT) bulletin. "Businesses operating at the Port of Antwerp are now able to participate in a program that facilitates the exchange of information about cargo-related crime between companies and authorities," it said. "The system, known as the Neighborhood Information Network (BIN), allows companies to submit anonymous tips about suspicious activity in the port area, which police then disseminates to other companies participating in the program. Approximately 650 companies were asked to join the program and 451 are now participating in the project."
CBP is considering an update to its foreign-trade zone (FTZ) pilot program that would expand direct delivery to non-owner operators that are enrolled in the Customs-Trade Partnership Against Terrorism (C-TPAT) program, said Lydia Jackson, FTZ Program Manager at CBP. "We would like to leverage the C-TPAT program to allow for liberalizing direct delivery requirements," she said at the National Association of FTZs Regulatory and Legislative Seminar Feb. 11 in Washington. Long-planned changes to its in-bond regulations are expected to come soon, though the final rule is still being reviewed by the Treasury Department, said another CBP official.
CBP performed 2,129 total Customs-Trade Partnership Against Terrorism (C-TPAT) validations in 2013, falling slightly short of its plans to reach 2,200 validations in the year, the agency said in an update on C-TPAT program statistics. The 2013 total included 576 initial validations and 1,553 revalidations, it said. While validations for 2013 started out slowly, the agency maintained it planed to reach 2,200 validations for the year (see 13060627). CBP did a total of 2,376 validations, including 640 initial validations and 1,736 revalidations, in 2012. The agency has done 33 validations this year as of Feb. 3, the update said.
CBP has recently dealt with some non-compliance with immigration laws by Customs-Trade Partnership Against Terrorism (C-TPAT) members, the agency said in a bulletin dated Jan. 31. "In some recent validations, instances have been identified where partners are not in compliance with U.S. immigration law," the bulletin said. Members may have benefits suspended or removed for such issues, it said.
The Advisory Committee on Commercial Operations (COAC) for CBP will next meet Feb. 20 at 1 p.m. in Washington, CBP said in a notice.