CBP Commissioner Wants Risk-Segmentation for Trade, New Role for Brokers

In his written remarks, Bersin talks about what he terms as the “3 Rs” - refocus, reassess, and rethink. He also talked about a 4th 'R' for redefining a new role for Customs brokers.

Refocus on Trade

Bersin said that he understands the trade community’s frustration with a lack of focus on CBP’s trade mission and the sometimes inadequate collaboration with the trade.

Risk segmentation. He stated that security and the facilitation of trade are two sides of the same coin. Each reinforces the other. CBP can secure and expedite legitimate trade and travel through risk segmentation.

Reassess Trade Processes

Bersin stated that part of rethinking the border (see below) involves an important second “R”-reassessing the way CBP processes trade. CBP is looking at a number of concepts that would improve its trade processing, including:

Accounts based on risk - to raise compliance by focusing on areas of risk, rather than volume, and expediting trade with CBP trusted partners by improved targeting and risk segmentation;

Simplified entry and finance - that would expedite legitimate trade, provide for earlier release decisions, and streamline the submission of information and payments;

Centers of expertise and excellence (CEEs) - a “virtual” concentration of CBP personnel who would leverage expertise and provide uniform guidance; and

ACE for management by account - finding ways to leverage the investment CBP has made in ACE, to ensure it fully supports its efforts to “management by account.”

(See ITT’s Online Archives or 10/26/10 news, 10102613, for BP summary of CBP announcing it was launching the first CEE and Account Executive pilot on November 1, 2010.)

Rethink the Border

The third “R” that Bersin covered was rethinking the border. The traditional approach to border management has been to “hold the line,” to intercept threats only as they attempt to cross.

More Holistic View of Border Management

He said that the border should no longer be looked at as a fixed dividing line. Although policing those boundaries will remain a key element of any border management approach, CBP should take a more holistic view of border management - one that includes securing and expediting the flow of lawful trade and travel.

Joint Continental Security with Mexico and Canada

The U.S. must take joint responsibility for managing its shared borders with Canada and Mexico, to protect people and expedite legitimate trade and travel. Bersin said "we should be securing the movement of commerce from beginning to end - from factory floor in one country through whatever mode of transit is used - ship, rail, truck, air - across the border - to its ultimate destination, whether it’s a manufacturer or company." He says this is continental security - securing the flow of people and products into, out of, and within the North American continent.

He believes the U.S. can accomplish this new vision in four key ways:

Improve risk targeting, segmentation. First, CBP must improve risk targeting and segmentation. Securing the flows of trade and travel requires separating cargo and travelers by the level of risk.

This requires targeting potential threats using advance information. Segmenting out the high risk and low risk traffic allows CBP to expedite the flow of goods and people it knows are safe or the ones that CBP has high confidence in. It also allows CBP focus its law enforcement resources on the small percentage of travel and trade that presents a risk or are unknown. Risk segmentation allows for smart and effective enforcement, but it requires that CBP obtain information about goods and people before they arrive at the physical border.

Expand trusted shipper programs. Second, CBP must expand its trusted traveler and shipper programs. These programs are some of CBP’s most effective risk segmentation tools. As CBP continues to incorporate best practices for security, it is committed to working with the trade community to ensure benefits are increasingly meaningful and relevant.

New/modernized ports of entry. Third, CBP must modernize its ports of entry and build new ports. Most of the existing border crossing infrastructure was built decades ago. It was never intended to house the kind of technology and personnel that is currently needed.

Push borders out. Fourth, CBP must “push our borders out.” Moving some of CBP border processing, including pre-screening and pre-inspection, away from the physical border itself can relieve the congestion that builds at the ports of entry. Bersin said that the U.S. needs to push its borders out, and with the help of its partners, it will examine establishing secure corridors for the transit of cleared, screened or inspected people and goods.

Redefining a New Role for Brokers

Along with refocusing on trade, rethinking how CBP manages the border, and reassessing its programs, Bersin discussed a fourth 'R' - redefining the changing role of brokers.

He stated that Customs brokers are some of CBP's most important partners; they assist in its work and provide advice and counsel. He stated that brokers have been concerned about some of the proposed changes to CBP business processes, such as management by account (instead of managing shipment by shipment).

Bersin said that Customs will still have to determine the admissibility of shipments, but the overall process will be simpler and more efficient. He said that the changes CBP is proposing will certainly not be the demise of the broker. CBP is adjusting its processes to better mirror true business practices. Brokers are already helping their clients do business and now they can help them do it more efficiently.