CBP Issues FY 2004 Mid-Year Import Trade Trends Report

According to CBP, the report contains highlights and graphical analysis designed to trace major trade patterns and the impact of major CBP initiatives on the international trade environment.

The following are highlights of CBP's report:

Import value projected to grow to new high. Import value was $664 billion during the first half of FY 2004, and projections for FY 2004 indicate that this value could grow by an additional $701 billion to a new high of $1.36 trillion.

68% of import value is duty-free. During the first half of FY 2004, approximately 68% of all import value was duty-free, of which 21% was conditionally free under special trade programs.

Revenue collections. $12.2 billion in revenue was collected in the first half of FY 2004. According to CBP, the revenue collections fell into three major categories: approximately $9.9 billion from duty collections; $1.2 billion was derived from miscellaneous collections, such as various fees and interest payments; and $1.1 billion was received as taxes.

CBP states that duties as a percentage of value ("overall duty rate") for the first half of FY 2004 dropped from 1.6% in FY 2003 to a new low of 1.5%. Although duty rates are in decline, total collections are projected to reach $25 billion in FY 2004.

AD/CV duty collections. Antidumping (AD) and countervailing (CV) duty collections were $720 million in the first half of FY 2004, and if current year-to-date trends continue, total AD/CV duties for FY 2004 could reach $1.5 billion.

CBP notes that softwood lumber from Canada accounts for 53% of AD duties and 96% of CV duties. Garlic, mushrooms, honey, and color TVs from China account for an additional 19% of AD duties.

Entry summary and line volumes. CBP states that it processed $11.7 million entry summaries in the first half of FY 2004, which is a 6% increase compared to the first half of FY 2003. Entry summary volume could reach 28 million by the end of FY 2004. Meanwhile, entry line volume was static at 38 million lines for the first half of FY 2004.

Number of consignees projected to reach record high. Over 523,000 consignees have imported in the first half of FY 2004, and the total number of consignees is projected to reach a record high of 772,000 by the end of FY 2004.

Compliance Measurement (CM) for trade laws at an all time high.CBP states that over 30,000 trade compliance exams were conducted by the end of the first half of FY 2004, and that to date, 95% of all FY 2004 entries sampled for trade laws are compliant.

(According to CBP, overall CM rates for trade were at an all time high of 93% in FY 2003, and that participants in the Container Security Initiative (CSI), Customs-Trade Partnership Against Terrorism (C-TPAT), and Importer Self-Assessment (ISA) and major importers typically have a higher CM rate for trade than the national average.)

18 active CSI ports with planned expansion to 14 more by end of year. 18 CSI ports were active by the middle of FY 2004, with expansion planned to another 14 ports by the end of the year.

CBP states that active CSI ports account for 36% (3.2 million) of all entry lines for sea container traffic. Also, almost 70% of the total number of sea containers brought into the U.S. come from an initial CSI port.

Sea vessel is primary method of shipping to U.S. The primary method of shipping to the U.S. is by sea vessel, which accounts for 42% of all import value in FY 2004, followed by air, truck, rail, foreign trade zone (FTZ)/warehouse, and other methods.

C-TPAT/ISA imports account for 36% of entry lines. Imports from C-TPAT participants account for 22% of all entry lines, while imports from participants in both C-TPAT and ISA account for 14% of all entry lines. Therefore, C-TPAT/ISA imports account for 36% (13.8 million) of all entry lines.

53% of year-to-date imports come from top five countries. 53% of all year-to-date imports come from the top five countries of Canada, China, Mexico, Japan, and Germany.

CBP states that the value of imports from China rose 111% in the last five years. Given this rate of growth, China could surpass Canada as the U.S.' number one trading partner in the next five years.

CBP report (published July 2004) available at http://www.cbp.gov/linkhandler/cgov/toolbox/about/accomplish/trade_trends_fy04.ctt/trade_trends_fy04.pdf