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CBP Testifies that Budget Request Would Fund Maritime Cargo Scanning Alternatives, Cargo Release, Etc.

At a March 9, 2011 House subcommittee hearing on U.S. Customs and Border Protection’s fiscal year 2012 budget request, members heard testimony from CBP Commissioner Alan Bersin, the sole witness, who discussed CBP’s budget request, testing alternatives to 100% scanning of maritime cargo, ACE investments, partnering with Mexico on outbound enforcement, etc.

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The Chairman of the Subcommittee on Homeland Security, House Appropriations, also issued a written statement, in which he expressed concern about budget cuts impacting CBP operations.

CBP Budget Request Includes Money to Test Alternatives to 100% Maritime Cargo Scanning

Bersin stated that the FY 2012 budget request includes $7.5 million to conduct cargo screening pilot(s) to assess alternatives to the 100% maritime cargo scanning requirement mandated by the Security and Accountability for Every (SAFE) Port Act of 2006. Funding would enable CBP to test alternatives to extend the zone of security beyond the physical borders, strengthen global supply chain security, and enhance CBP’s multi-layered security strategy in support of the Administration’s Global Supply Chain Security Initiative.

In addition, CBP’s budget request also includes $7.5 million to expand the Immigration Advisory Program (IAP) to Paris, Abu Dhabi, Dubai, and Amman. IAP is a part of CBP’s layered risk-based approach to detect and prevent the entry of hazardous materials, goods, and instruments of terror into the U.S.

Also Includes $20M for ACE Cargo Release that Will Speed Cargo Processing

Bersin added that in order to improve the flow of goods, CBP’s budget request includes a $20 million increase to support the design and development of Cargo Release functionality in ACE. This funding, combined with carry over funds, will allow a useful segment to be completed providing ACE users with a new operational capability.

Cargo Release functionality will incorporate the informational and operational requirements of more than 40 federal agencies into ACE via the International Trade Data System initiative. This will facilitate faster cargo processing by providing CBP officers with security screening results and streamlining the process of separating high-risk cargo from low-risk cargo. It will also provide new cargo status querying capabilities, giving trade partners visibility into cargo screening results and other government agency data requirements.

CBP Plans to Cut “Non-Mission Critical” Expenses like Travel, Supplies

Bersin said that CBP’s budget request would reduce professional service contract spending by $30 million. CBP has also identified $20 million in mission support expenditures that can be eliminated through efficiencies and are cutting non-mission-critical expenses such as travel, training, and acquisition of supplies.

Chairman Says Lower Budget Request for OT, SW Border May Impact Operations

In his opening statement, the Chairman of the Subcommittee, Representative Aderholt (R), stated that while he is pleased to see that CBP’s FY 2012 budget pledges to cut costs and prioritize frontline operations, he is concerned that the President’s request for CBP includes undefined efficiencies and administrative savings that will likely impact operations.

For example, the request cuts $60 million dollars from Air & Marine personnel and assets which will likely reduce surveillance of the Southwest Border. It also reduces overtime flexibility for CBP officers by $20 million dollars that will likely increase wait times at ports of entry. He states that he is not convinced this request stabilizes CBP’s budget to sustain the workforce much less support investments in technology, infrastructure, and assets needed to meet the mission.

Chairman also Concerned About Requested Increase to Passenger Fees

The Chairman also expressed concern regarding the President’s request proposing a hypothetical increase to Customs user fee revenues of $55 million dollars in FY 2012.

Authorizing legislation would be needed to require passengers entering the U.S. from Canada and Mexico to pay the fee. If not enacted, CBP will likely expect the Subcommittee to fill the $55 million dollar hole.

Bersin Provided FY 2010 Statistical Highlights Inspections, Seizures, Duties, Etc.

Bersin noted that in FY 2010, CBP officers at 331 POEs inspected 352 million travelers and more than 105.8 million cars, trucks, buses, trains, vessels and aircraft. In FY 2010, CBP processed nearly $2 trillion in trade and collected over $32 billion in total duties, taxes, and fees, as well as over $314 million in antidumping and countervailing duties.

CBP continued to work with the trade community to increase the flow of legal, trusted trade through partnerships such as the Importer Self-Assessment Program, which now accounts for more than 20% of all import value. At the same time, CBP conducted approximately 3,700 import safety seizures during fiscal year 2010, an increase of 34% over fiscal year 2009; and 19,961 seizures for intellectual property rights (IPR) violations.

CBP to Continue to Partner with Mexico on Outbound Enforcement, Etc.

Bersin said that the U.S.’ partnership with Mexico has been critical to efforts to secure the southwest border, and CBP will continue to expand this collaboration in the coming year.

One way in which the U.S. and Mexico are working together is through CBP’s outbound enforcement program. Under the Southwest Border Initiative, CBP implemented 100% screening of southbound rail shipments for illegal weapons and cash. CBP is continuing to assess and refine its outbound enforcement strategy to include coordinated efforts with U.S. law enforcement agencies and the Government of Mexico to maximize southbound enforcement. These activities serve to enforce U.S. export laws while depriving criminal organizations in Mexico of the illicit currency and firearms that fuel their illegal activities.

(See ITT’s Online Archives or 12/03/09 news, 09120320, for BP summary of CBP testifying on outbound enforcement and coordination with Mexico.)

CBP Working with Canada to Secure Border, Coordinate on Port Operations

Bersin noted that over the past two years, the U.S. has made security improvements along the northern border -- investing in additional law enforcement, technology, and infrastructure. Currently, CBP has more than 2,200 Border Patrol agents on the northern border - a 700% increase since 9/11- and nearly 3,800 CBP Officers managing the flow of people and goods across ports of entry and crossings.

CBP is working closely with the Royal Canadian Mounted Police (RCMP) and the Canada Border Services Agency (CBSA) to enhance coordination on port operations, conduct joint operations between POEs, and jointly deploy new technology. In conjunction with CBSA and RCMP, CBP recently announced the release of a joint border threat assessment, which provides U.S. and Canadian policymakers, resource planners, and other law enforcement officials with a strategic overview of significant threats - to include drug trafficking, illegal immigration, illicit movement of prohibited or controlled goods, agricultural hazards, and the spread of infectious disease - along the U.S.-Canadian border.

(See ITT’s Online Archives or 02/17/11 news, 11021716, for BP summary of CBP and GAO testifying on border security measures.

See ITT’s Online Archives or 03/11/11 news, 11031120, for BP summary of the U.S. and Canada releasing a joint border threat and risk assessment on exports, etc.

See ITT’s Online Archives or 02/16/11 news, 11021629, for BP summary of CBP’s FY 2012 budget request.

See ITT’s Online Archives or 02/25/11 news, 11022521, for BP summary of CBP’s highlighting its FY 2010 progress with C-TPAT, ACE, import safety, etc.)

Bersin’s written testimony is available here.

Chairman Aderholt’s written opening statement is available here.