In preparation for operating under sequestration, CBP has redirected resources toward only the most critical, core functions and has discontinued or postponed certain important but less critical activities in an effort to reduce budget expenditures. The mandated across-the-board spending cuts took effect on March 1, 2013. The cuts tied to the sequestration will be made [...]
In preparation for operating under sequestration, CBP has redirected resources toward only the most critical, core functions and has discontinued or postponed certain important but less critical activities in an effort to reduce budget expenditures.
The mandated across-the-board spending cuts took effect on March 1, 2013. The cuts tied to the sequestration will be made equally across the agency, with no preference by port of arrival. The first, immediate cuts will reduce overtime beginning March 1st, and personnel furloughs may begin in mid-April. CBP managers at the field offices and ports of entry conducted an in-depth analysis of their operations to identify any current activities, duties, and hours of operation that could be adjusted to mitigate the impact of the significant reductions in expenditures mandated by the sequester.
However, given the magnitude of the reductions, CBP currently estimates that there may potentially be delays up to several hours at land border crossings, passenger processing times may increase by about 50%, and there may be up to an additional five days added to cargo inspections at ocean ports of entry.
Once furloughs commence, there may be more risk-based adjustments made regarding other inspections, with less impact to trusted travelers and trusted traders. There could be some eventual delays in providing advice and rulings. Additionally, strategic initiatives such as the Automated Commercial Environment (ACE) and the rollout of the Centers of Excellence and Expertise (CEE) may be impacted. Continue reading »
I.E.Canada, in partnership with LSCI Inc., introduces its Trusted Trader Webinar Series. Our 3 ninety minute sessions will delve into and demystify the Canada Border Services Agency’s (CBSA) Customs Self Assessment (CSA) Program. Gain the knowledge and tools needed to determine how this Trusted Trader program can benefit your company in addressing the increasing demands [...]
I.E.Canada, in partnership with LSCI Inc., introduces its Trusted Trader Webinar Series. Our 3 ninety minute sessions will delve into and demystify the Canada Border Services Agency’s (CBSA) Customs Self Assessment (CSA) Program. Gain the knowledge and tools needed to determine how this Trusted Trader program can benefit your company in addressing the increasing demands of an ever changing Canadian import landscape, where mandatory importer Advanced Trade Data requirements for all modes of transport loom in 2014 under eManifest (the third phase of CBSA’s Advance Commercial Information program), delays grow at the border and the potential for audits and penalties for non-compliance increases. Our member experts from industry, the CBSA and the service provider community will share their unique perspectives, experiences, as well as the cost and time-saving advantages of having successfully integrated CSA into their businesses’ logistics and trade compliance strategies. It is easier to adopt than you think!
The sessions are:
Trade Compliance Program Overview: What’s Available & How to Maximize It
February 27, 2013 1:00pm – 2:30pm EST
Speakers: Michelle Bunbury, Senior Manager, Trade Management Services, UPS-SCS
Hear an overview of Partners in Protection (PIP), Customs Self Assessment (CSA) and Trade Benefits (formerly the CBSA Partners in Compliance pilot) as an alternative to Advance Commercial Information (ACI), including eManifest requirements and mandatory importer Advanced Trade Data (ATD) in all transport modes for July 2014. There will also be a case study presentation on How CSA fits into my compliance program.
Customs Self-Assessment (CSA) Program: It’s Easier to Apply for Than You Think and Applying for CSA- What to Expect
March 6, 2013 1:00pm – 2:30pm EST
Speakers: Natalie Rochon, Senior Program Officer, CSA/FAST Importer Compliance, CBSA; Susan Subryan, Customs Compliance Coordinator, L.V. Lomas Limited
A presentation and case study dispelling the myths of the CSA application process as well as the costs associated with adopting this Trusted Trader program.
CSA, Modernizing and Automating Your Importation Environment, Let’s Get Started!
March 13, 2013 1:00pm – 2:30pm EST
Speakers: Louis Sauvé, IT Director, LSCI Inc.; Ruheda Karim, Manager, Customs and Compliance, Deeley Harley-Davidson Canada
A presentation on the nuts & bolts of transitioning systems to CSA followed by a case study: Soup-to-Nuts, the Path I Followed
I.E. Canada Member Registration Rate: FREE
Non-Member Registration Rate: $75 per session
Webinar login information will be sent prior to each session. Click here to register.
U.S. Customs and Border Protection (CBP) and Mexico’s Tax Administration Service (SAT) signed a Joint Work Plan yesterday that lays out the path to mutual recognition of the two countries’ Authorized Economic Operator programs: CBP’s Customs-Trade Partnership Against Terrorism (C-TPAT) and SAT’s New Certified Companies Scheme (NEEC). The plan, expected to be implemented in two [...]
U.S. Customs and Border Protection (CBP) and Mexico’s Tax Administration Service (SAT) signed a Joint Work Plan yesterday that lays out the path to mutual recognition of the two countries’ Authorized Economic Operator programs: CBP’s Customs-Trade Partnership Against Terrorism (C-TPAT) and SAT’s New Certified Companies Scheme (NEEC). The plan, expected to be implemented in two years, was signed by CBP Deputy Commissioner David V. Aguilar and SAT Director Aristóteles Nuñez Sánchez.
The Joint Work Plan lays out the path forward to mutual recognition between the two programs. Mutual recognition allows for companies enrolled in one program to receive reciprocal benefits from the other with the result of both further securing the international supply chain and facilitating trade between the United States and Mexico.
C-TPAT is a voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT recognized that U.S. Customs and Border Protection can provide the highest level of cargo security only through close cooperation with the ultimate owners of the international supply chain such as importers, carriers, consolidators, licensed customs brokers, and manufacturers.
The Canada Border Services Agency announced Dec. 7 the launch of a pilot program at the Blue Water Bridge in Sarnia, Ontario, that aims to further speed the clearance of cargo at the U.S.-Canada border for trusted traders. Under this six-month test companies will be able to use the Free and Secure Trade (FAST) lanes [...]
The Canada Border Services Agency announced Dec. 7 the launch of a pilot program at the Blue Water Bridge in Sarnia, Ontario, that aims to further speed the clearance of cargo at the U.S.-Canada border for trusted traders. Under this six-month test companies will be able to use the Free and Secure Trade (FAST) lanes and booths at this bridge if they are members of either the Partners in Protection or Customs Self-Assessment program, not both as previously required. The CBSA states that if this pilot is successful the change may be permanently implemented at all three ports where FAST is currently available.
Source: STR Trade Report
Click here to read the complete press release from the Canadian Government.
At a recent meeting of the Border Commercial Consultative Committee (BCCC) Trusted Traders Programs Subcommittee at which the Canada Border Services Agency explained their involvement in the Authorized Economic Operator (AEO) Regional Strategy in the Americas and Caribbean Region. For details refer to the CBSA’s strategy document. Background: At the XV Regional Conference of Customs [...]
At a recent meeting of the Border Commercial Consultative Committee (BCCC) Trusted Traders Programs Subcommittee at which the Canada Border Services Agency explained their involvement in the Authorized Economic Operator (AEO) Regional Strategy in the Americas and Caribbean Region. For details refer to the CBSA’s strategy document.
Background:
At the XV Regional Conference of Customs Directors General (RCCDG) meeting held in April, 2012, the CBSA committed to participate in the AEO Regional Strategy Steering Committee Workshops via the Uruguay Resolution is an effort by the Americas and Caribbean region to develop a strategy, with the private sector, for the implementation of AEO programs based on the WCO SAFE Framework with a goal to pave the way to achieve Mutual Recognition Arrangements.
The Strategy seeks to:
• Encourage the implementation of AEO programs in the Region.
• Strengthen AEO programs already established in the Region.
• Increase the number of certified AEO operators in the Region.
• Establish and/or strengthen partnerships with the private sector and other government agencies and international organizations in the development of AEO programs.
• Promote MRA negotiations.
The AEO Regional Strategy is a step towards establishing a broader network of secure trade partners and managing risk away from the border.
As a member of the Steering Committee, Canada has committed to consulting with industry on the text and concepts outlined in the AEO Regional Strategy. Although Canada already has a well-established AEO program, countries in the region are looking to Canada as leader in AEO development to help guide the way for those wishing to improve upon or develop AEO programs. It is the responsibility of the CBSA to ensure that Canada’s public and private sector interests are represented and that the strategy aligns with the CBSA’s Trusted Traders program objectives and requirements for entering into MRAs.
The EU and the United States of America formally agreed to recognise each other’s safe traders, thereby allowing these companies to benefit from faster controls and reduced administration for customs clearance, as a result of a mutual recognition decision signed by both parties. EU and U.S. certified trusted traders will enjoy lower costs, simplified procedures [...]
The EU and the United States of America formally agreed to recognise each other’s safe traders, thereby allowing these companies to benefit from faster controls and reduced administration for customs clearance, as a result of a mutual recognition decision signed by both parties. EU and U.S. certified trusted traders will enjoy lower 
costs, simplified procedures and greater predictability in their transatlantic activities. Mutual recognition will also improve security on imports and exports, by enabling customs authorities to focus their attention on real risk areas.
What this means in practical terms is that the U.S.-EU Mutual Recognition Decision officially recognizes the compatibility of the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) and the EU’s Authorized Economic Operator (AEO) program. USCIB has long encouraged an agreement between the U.S. and EU that would recognize compatibility between the U.S. and EU cargo security programs.
There are currently some five thousand companies approved as Authorised Economic Operators (AEOs) in the EU – a number which is growing year on year. The EU and USA are strategic trade partners, with imports and exports accounting for almost €500 billion in 2011. The joint decision will start to be implemented from 1 July 2012.
Commissioner Semeta said: “[The] agreement is a major step forward in the EU-U.S. trade relationship. At a time when businesses need all the support they can get, this will make life easier and cheaper for many transatlantic traders. It will also help to ensure that security checks on traded goods are more focussed and effective, further improving the protection that customs provides for each and every citizen.”
Vice President of Government and Trade Relations with HanesBrand, Inc., and chair of USCIB’s Customs and Trade Facilitation Committee Jerry Cook said: “We congratulate CBP and the EU Taxation and Customs Union Directorate for delivering on the commitment of a mutual recognition agreement, and for continuing to build working partnerships of responsible industry leaders, governments and citizens.”
Expressing this sentiment, U.S. Ambassador to the EU William Kennard tweeted that the signing of the accord was an “Important step toward securing, facilitating trade.”
Mutual recognition of trade partnership programs prevents the proliferation of incompatible standards, and promotes harmonisation of customs practices and procedures worldwide.
Source: New Europe Online
Following is the feature article from the CBP FY 2011 Report on Import Trade Trends Say the words, “September 11, 2001,” and images of death and destruction come immediately to mind. With nearly 3,000 people killed in those terrorist attacks, on that day “the highest priority became preventing terrorists and terrorist weapons from entering our [...]
Following is the feature article from the CBP FY 2011 Report on Import Trade Trends
Say the words, “September 11, 2001,” and images of death and destruction come immediately to mind. With nearly 3,000 people killed in those terrorist attacks, on that day “the highest priority became preventing terrorists and terrorist weapons from entering our country,” then-U.S. Customs Service Commissioner Robert C. Bonner said.
Less visible, but with longer-term effects, was the attacks’ crippling impact on the U.S. economy. By driving two passenger planes into the twin towers — targeting the financial capital of the U.S.—al-Qaida symbolically targeted not only Americans, but the American way of life, specifically travel and trade. A 2002 Congressional Research Service report noted that the long-term costs of increased security would likely be “greater impediments to the free movement of goods, services, and capital….(which) have contributed immeasurably to the integration of the world economy and its efficient functioning.”
After the founding of U.S. Customs and Border Protection in 2003, responding to terrorism effectively became a thorny challenge for the agency charged with defending America’s borders. On the one hand, total vigilance would seem to demand virtually closing down the borders for a total inspection of every person, package and container coming through. As one CBP officer remarked, “I don’t want to be the one responsible for letting someone in [who would go on to commit an attack].”
Yet if nothing and no one can enter the country without a full, hands-on inspection, the terrorists would win a shattering victory of another kind. The dual imperatives to keep dangerous people and things out while allowing legitimate travel and trade to flow in led agency officials to adopt the phrase, “a balanced approach to security and facilitation.” It became almost axiomatic that these two goals were opposed, in a sense, and that managing them was a delicate dance. Leaders of the agency tried to reassure the trade in particular that security would not trump competitiveness. In 2006, then-Commissioner W. Ralph Basham articulated a CBP theme of increasing importance, that security could be a win for industry.
In his words, “Companies are realizing collateral benefits from improved security…and are moving more goods across international borders faster and more efficiently.”
Intuitively, the mission of revenue collection does not exactly mesh with the enforcement of border security. When CBP Commissioner Alan D. Bersin assumed leadership in 2010, the contradiction dissolved completely. As he stated to the U.S. Chamber of Commerce in 2011, “At CBP, we believe security and facilitation of international travel and trade are actually the same phenomenon.”
Extending the re-validation cycle for companies in the Customs-Trade Partnership Against Terrorism by a year will not adversely impact supply chain security, according to Shawn Beddows, the U.S. Customs official directly in charge of the program. The Obama administration’s budget plan for fiscal year 2013 calls for a $5 million reduction in C-TPAT spending, with [...]
Extending the re-validation cycle for companies in the Customs-Trade Partnership Against Terrorism by a year will not adversely impact supply chain security, according to Shawn Beddows, the U.S. Customs official directly in charge of the program.
The Obama administration’s budget plan for fiscal year 2013 calls for a $5 million reduction in C-TPAT spending, with the money diverted instead to pay for frontline inspection operations. Most of the savings are to be achieved by scheduling follow-on verifications of trusted shippers’ supply chain security practices every four years, instead of three. […]
Another possible change to C-TPAT is the addition of an export component. CBP officials, acquiescing to private sector demands for a program that would make it easier to comply with the cargo security programs of foreign governments, in recent months have said they are contemplating a security program for exporters.
Customs is expected to consider several approaches for export verification, including flipping the C-TPAT import criteria to exports or using a security checklist that is equivalent to ones used by European Union governments for their Authorized Economic Operator programs. Read more here (subscription required).
Source: Eric Kulisch — American Shipper Magazine
U.S. Customs and Border Protection has posted to its Web site additional information about the centers it is establishing to speed the processing of imported goods. The first two – the Center of Excellence and Expertise – Electronics in Los Angeles and the Center of Excellence and Expertise – Pharmaceuticals in New York – were [...]
U.S. Customs and Border Protection has posted to its Web site additional information about the centers it is establishing to speed the processing of imported goods. The first two – the Center of Excellence and Expertise – Electronics in Los Angeles and the Center of Excellence and Expertise – Pharmaceuticals in New York – were created last October, and others are anticipated in 2012. Each CEE will seek to increase the uniformity of practices across ports of entry, facilitate the timely resolution of trade compliance issues nationwide and further strengthen CBP knowledge on key industry practices.
Scope of CEEs
CBP states that each CEE will address an entire industry and provide a single point of contact for questions or concerns related to that industry. This will enable CBP trade personnel to specialize in a key industry, building advanced knowledge in the intricacies of particular business practices, processes and products. CEEs also will serve as a ready source of clear and definitive information for trade and government partners on CBP requirements and best practices.
As the CEEs expand they will provide “one-stop” processing for trusted traders in a particular industry, processing entry summaries and subsequent activities (e.g., post-entry amendments, protests) for trusted traders.
The trade community can contact CEEs for assistance in the following areas: technical guidance on covered imports, clarification of CBP policies and procedures, assistance with CBP requests for information/action (CF-28s, CF-29s, etc.), assistance with lengthy cargo holds, and information regarding counterfeit/substandard imports.
Trusted Traders
For the moment, a trusted trader is an importer that is Customs-Trade Partnership Against Terrorism certified (tier 3 or 2) and a member of the Importer Self-Assessment program. As the CEEs expand CBP will look for opportunities to work with industry on expanding the definition of a trusted trader.
Import Processing
CBP states that the process flow for entries and entry summaries will not change and that the location of CBP processing for post-release aspects of trusted trader shipments will simply be moved from ports of entry to the appropriate CEE. For example, an electronics importer may currently import through 60 ports of entry, with post-release processing being done at each location. Once the CEEs are fully staffed and have necessary trade functionality they will handle such processing, leading to greater uniformity in decision making.
Training
CEEs will develop and foster training initiatives for both agency personnel and members of the trade community. This may include collaborative efforts with the private sector to enhance agency understanding of the industry at large. CEEs can also serve as an important resource for small and medium-sized importers who may not have large compliance departments.
Other Government Agencies
CEEs will be expected to partner with OGAs and promote the adoption of risk management and segmentation practices that will result in even greater facilitation of legitimate trade and enhanced enforcement activities. CBP would welcome OGA participation and staffing in the CEEs whose industries are regulated by those agencies.
Expansion
CBP plans to establish additional CEEs over the next three years and to have all imported commodities covered by CEEs by the end of that time.
Account Managers
All trusted partners within a CEE-covered industry will continue to have account managers assigned to them.
Cargo Security
CBP states that cargo security aspects will remain within the current organizational elements but that CEEs will play an integral role in enhancing the link between security and trade functions as they evaluate the impact of security efforts on their specific industries and accounts.
Source: World Trade Interactive — Sandler, Travis & Rosenberg P.A.
A new EU-US agreement that aims to simplify and speed up customs procedures for shipments of goods crossing the Atlantic was finalized at the Transatlantic Economic Council (TEC) in Washington DC, on November 29th. The agreement, several years in the making, requires both sides to mutually recognize each other’s ‘trusted trader’ programs that cover some [...]
A new EU-US agreement that aims to simplify and speed up customs procedures for shipments of goods crossing the Atlantic was finalized at the Transatlantic Economic Council (TEC) in Washington DC, on November 29th.
The agreement, several years in the making, requires both sides to mutually recognize each other’s ‘trusted trader’ programs that cover some 4,600 EU businesses and 10,000 US firms. The mutual recognition arrangement will essentially treat the United States’ Customs-Trade Partnership Against Terrorism and the EU’s Authorized Economic Operator program as equivalent.
The final sticking point to be resolved concerned data protection rules. The accord becomes operational once the information technology systems are in place and “no later than June 2012,” said the EU’s Taxation and Customs Union Commissioner Algirdas Semeta at the conclusion of the TEC, which the U.S. State Department hosted.
The TEC was set up in 2007 to guide and stimulate transatlantic economic convergence. The regulatory work of the TEC focuses on economically relevant issues of mutual interest, in order to identify issues where EU-U.S. cooperation could produce results in a reasonable time horizon and to engage in a strategic discussion on selected global economic issues.
Earlier this year, Mexican Customs (Administración General de Aduanas) began a pilot for its new trusted shipper program designed to accelerate the crossing and inspection process at international bridges. The Nuevo Esquema de Empresas Certificadas, or NEEC, is a voluntary trusted shipper program that offers participating companies fewer inspections and faster clearances for meeting specified [...]
Earlier this year, Mexican Customs (Administración General de Aduanas) began a pilot for its new trusted shipper program designed to accelerate the crossing and inspection process at international bridges.
The Nuevo Esquema de Empresas Certificadas, or NEEC, is a voluntary trusted shipper program that offers participating companies fewer inspections and faster clearances for meeting specified requirements at international ports of entry.
The program is modeled after the U.S. C-TPAT (Customs-Trade Partnership Against Terrorism) certification program that allows bridge-crossers to use the FAST lanes, skipping to the front of long lines and potentially bypassing time-consuming inspections. Short for Free and Secure Trade, the post-9/11 program was a joint effort between the U.S. government, the truck driver, the carrier, the manufacturer and the importer.
While C-TPAT has been in place for northbound traffic from Mexico since 2002, there has not been a similar program for southbound traffic. The Tax Administration Service, or SAT, the Mexican agency that oversees customs, worked to develop its own program; one that U.S. trade officials say will benefit trucks carrying U.S. exports across the border.
The NEEC, program is expected to officially open up to all interested participants later this month. Companies with business operations in Mexico that are already C-TPAT certified will be well positioned to take advantage of participation in NEEC – but is your company ready for this?
To find out more about the NEEC and if your company is ready to participate, join Karen Lobdell, Director – Global Solutions at Integration Point Inc. for a one-hour webcast on November 30th, as she discusses:
• Program history and objectives
• Requirements for participation
• Minimum security standards
• Application procedures and scope
• Next steps
• Tools available to assist with participating in the NEEC and other security programs
This webcast will be held on Wednesday, November 30, 2011 at 11:00 a.m. EST/ 8:00 a.m. PST.
For more information and to register, click here.
India’s Central Board of Excise and Customs (CBEC) last month announced a new ‘Authorised Economic Operator’ (AEO) program, with a view to give AEO-certified operators preferential treatment in terms of less Customs examination, relaxed procedural requirements, etc, subject to the operators maintaining prescribed security standards and compliance requirements. The voluntary scheme is available to importers, [...]
India’s Central Board of Excise and Customs (CBEC) last month announced a new ‘Authorised Economic Operator’ (AEO) program, with a view to give AEO-certified operators preferential treatment in terms of less Customs examination, relaxed procedural requirements, etc, subject to the operators maintaining prescribed security standards and compliance requirements.
The voluntary scheme is available to importers, exporters, warehouse owners, custom house agents, cargo forwarders, carriers, port operators and couriers, among others in the trade community. Companies can obtain an internationally recognized quality mark, which will indicate their secure role in the international supply chain and that their Customs procedures are efficient and compliant. Thereafter, they will be considered ‘secure’ traders and reliable trading partners.
The AEO program has been developed pursuant to guidelines of the World Customs Organization’s (WCO) adoption of SAFE FoS (Framework of Standard) in 2005. The objective was ensuring security in the global supply chain from the point of origin i.e., the point of export to the point of import in the receiving country, keeping in view national requirements of respective administrations. SAFE seeks to establish standards that provide supply chain security and facilitation at a global level to promote certainty and predictability, enable integrated supply chain management for all modes of transport, enhance the role, functions and capabilities of Customs to meet the challenges and opportunities of the 21st century, strengthen cooperation between Customs administrations to improve their capability to detect high-risk consignments, strengthen Customs/Business cooperation and promote the seamless movement of goods through secure international trade supply chains. Continue reading »
This week I am fortunate to be reviewing the 2nd white paper by Reynold Martens, Executive VP, GHY International and President, GHY USA Inc.. Reynold was the author of the paper titled, A Case for An Integrated Trade Compliance Strategy that was released in 2010. This new paper is titled Seven Best Trade Compliance Practices [...]
This week I am fortunate to be reviewing the 2nd white paper by Reynold Martens, Executive VP, GHY International and President, GHY USA Inc.. Reynold was the author of the paper titled, A Case for An Integrated Trade Compliance Strategy that was released in 2010.
This new paper is titled Seven Best Trade Compliance Practices of Trusted Traders.
In this paper 7 specific concepts are introduced that are derived from interviews with traders of all sizes, as well as reviewing the many surveys released by large multi national firms.
The concept fo what is a “Trusted Trader” is defined early in the document as part of the back ground to this white paper.
While the document and it’s content are ready for public disclosure I will leave you with a hint of the top two topics we found that are Best Trade Practices:
- Corporate Leadership
- Trade Champion
We would love to let you know when this new white paper is released, just sign up for our news letter on the right hand side and we will make sure you will be one of the first to know.
Outdated compliance requirements are too costly and inefficient for today’s global markets A shipper trade facilitation group claims that current customs and trade compliance requirements are holding back international commerce and putting huge strains on the national authorities controlling them. The whole system is costly, inefficient and unnecessarily bureaucratic, and needs to be fundamentally changed. [...]
Outdated compliance requirements are too costly and inefficient for today’s global markets
A shipper trade facilitation group claims that current customs and trade compliance requirements are holding back international commerce and putting huge strains on the national authorities controlling them. The whole system is costly, inefficient and unnecessarily bureaucratic, and needs to be fundamentally changed. Traders who can be trusted should be given the right to control their own trade compliance. So says a group of representatives from private, internationally trading companies and U.K. public stakeholders known collectively as SAGE.
Chairman of SAGE, Mark Corby, said: “There is a growing number of trade compliance and facilitation managers from companies engaged in large scale international trade who are frustrated by the increasing costs and complexity of trade compliance requirements. The nature of our businesses and the world trading environment requires a totally new approach. That’s what our group is all about – opening up the debate to some radical new thinking that fundamentally changes the way we look at controlling international trade.”
