CBP Provided Update on U.S.-China Joint Validations, IPR, Etc. at 2008 Trade Symposium

CBP and China are Conducting Next Round of Joint C-TPAT Validations

According to the attach, CBP currently has Customs-Trade Partnership Against Terrorism (C-TPAT) staff in China training Chinese customs officials on supply chain security issues.

The attach further stated that starting the week of November 3, 2008, CBP would begin joint C-TPAT validations with China customs for approximately 16 companies. CBP states that it hopes that the joint validations will be completed by the end of November 2008.

(In March 2008, CBP announced a joint C-TPAT validation pilot program with China. For the first round of joint validations, three C-TPAT members were selected for joint validations.)

CBP Working with China Customs to Combat IPR Violations

The attach also addressed the issue of combating intellectual property rights violations by China, noting that in 2007, CBP and China customs signed a memorandum of cooperation to strengthen enforcement of IPR in China.

According to the attach, CBP has been exchanging seizure data with China customs with the hope that China customs will follow up and give CBP a report on the actions being taken against the violators in China. CBP has provided China with two sets of seizure data and has received feedback from the Chinese.

The attach noted that in July 2008, China customs gave CBP numerous bills of lading for supposedly IPR infringing goods that were headed to the U.S. CBP states that the information resulted in measurable seizures within the U.S.

In order to further increase cooperation, there was also a decision made by CBP and China customs to undertake the process of looking at data definitions for both sides and during the October 10, 2008 through mid-November 2008 period, both the U.S. and China are going to come up with definitions for their data. At the end of November, the data definitions will be exchanged and meetings will be held to further define where to go in the future.

The attach also announced that the Web site of the U.S. Embassy in China has a tool to help guide the trade through the IPR maze in China. The "IPR Toolkit" is available at http://beijing.usembassy-china.org.cn/ipr.html.

The U.S. Ambassador to China is also holding a IPR Roundtable during the week of November 3, 2008, which will bring together representatives from the trade who have offices in China with Embassy officials to discuss the issues facing the trade and how the government can help.

China is Developing its Own Authorized Economic Operator Program

China is developing an Authorized Economic Operator (AEO) program with Chinese characteristics. However, the attach notes that this is one area of U.S.-China relations that has been adversely affected by the U.S. decision to sell arms to Taiwan.

Because of the issue with Taiwan, the attach was told that China customs is slowing down cooperation with the U.S. in this area and that nothing would be forthcoming in the immediate time period.

However, China is currently piloting its AEO program with the European Union.

(In June 2006, the World Customs Organization Council adopted guidelines for AEO programs which offer benefits for businesses that meet minimal supply chain security standards and best practices, as part of the SAFE Framework. CBP officials have previously compared AEOs to C-TPAT participants, and industry sources have stated that AEO requirements are similar to those of C-TPAT. CBP has been engaged in efforts to achieve mutual recognition between C-TPAT and the AEO programs of other countries.

See ITT's Online Archives or 08/21/08 news, 08082120, for most recent summary of CBP's mutual recognition activities.)