CBP Officials Discuss "Risk Management" for Bond Processes at February 2008 COAC Meeting
During the February 13, 2008 meeting of the Departmental Advisory Committee on Commercial Operations of U.S. Customs and Border Protection and Related Homeland Security Functions (COAC)1, CBP officials discussed, among other things, the possibility of a review of whether risk management could be applied to CBP's bond processes.
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The discussion began when COAC members again asked CBP to consider providing bond benefits to Customs-Trade Partnership Against Terrorism (C-TPAT) members who have achieved Tier 3 status.
(In 2006, COAC had asked CBP, as part of its proposal for certain "green lane" benefits for Tier 3 C-TPAT members, to lower the limit of liability on single transaction and continuous entry bonds. At the November 2007 COAC meeting, CBP officials noted that 230 C-TPAT members had been granted Tier 3 status. See ITT's Online Archives or 01/20/06 news, 06012010, for BP summary of COAC's green lane proposal. See ITT's Online Archives or 11/27/07 news, 07112705, for BP summary of November 27, 2007 COAC meeting.
CBP has previously expressed reservations about providing "trade" benefits for C-TPAT, which CBP characterizes as a "security" program.)
CBP Officials Suggest COAC Look at Applying Risk Management to Bond Processes
In response to COAC's request, CBP suggested that COAC might want to consider looking at the bond process in its entirety to see how risk management principles could be applied, rather than limiting its focus to bond benefits for C-TPAT Tier 3 members.
(CBP officials noted that bonds are one of the few areas within CBP that do not use a risk management approach.)
1Formerly known as the "Commercial Operations Advisory Committee."
(See ITT's Online Archives or 03/14/08, 03/11/08, and 02/27/08 news, 08031405, 08031105, and 08022705, for BP summaries of other C-TPAT-related issues discussed at the February 2008 COAC meeting.)