DHS Outlines Improvements in CBP's ISA Compliance & Cargo Security

(See ITT's Online Archives 11121619 for summary of the OIG's November report.)

CBP Made Progress on Addressing ISA Program Participant Trade Compliance

The OIG's report identified U.S. Customs and Border Protection's lack of oversight tools for the Importer Self Assessment (ISA) program as creating challenges to assuring that program participants were in compliance with federal trade regulations. In this financial report, DHS states that CBP has made progress on the challenges identified by the OIG regarding completion of risk assessments and the need for standard procedures and guidance for ISA program participants, including:

10 risk factors identified. CBP has provided a risk matrix and risk analysis for the ISA program. The risk matrix provides guidance on risk assessment based on the likelihood of the occurrence and impact of the risk, if it occurred. The risk analysis identified 10 risk factors, the probability of occurrence and severity of the risk, and mitigating controls. DHS states this demonstrates that CBP has analyzed the individual risks to trade compliance associated with policies for accepting importers into the ISA program and identified appropriate mitigating activities for each risk. Further, CBP identified the source of the mitigating activities, such as the ISA Handbook, ISA Standard Operating Procedure (SOP), etc. OIG has indicated that CBP's corrective action satisfied its recommendation.

Nat'l account managers assigned. CBP has removed ISA program oversight responsibilities from port account managers and assigned those importer accounts to national account managers. ISA SOP #2011-001 requires that national account managers review the information in the importer’s annual notification letters including the findings from the periodic testing. In addition, it requires the national account managers to complete an ISA account risk summary, which includes the evaluation of risk associated with importer self-testing results and actions taken. OIG has indicated that CBP's corrective action satisfied its recommendation.

Updated SOPs for account managers. CBP decided that in lieu of updating the National Account Manager Guidebook, it will implement Account Management’s SOP for ISA Accounts. The purpose of the SOP is to provide guidance and instruction to national account managers on assessing and reviewing ISA applicants and to promote uniform oversight of ISA program participants. The SOP addresses the challenges of the ISA program from an account management perspective and will be the authoritative document that national account managers follow for ISA account management purposes. The SOP has been reviewed by CBP stakeholders and is awaiting final approval. Once CBP obtains final approval, the SOP will be disseminated for implementation.

Updated Guidance and C-TPAT Security to Improve Cargo Security

Challenges with CBP's examination of high-risk cargo identified in the OIG's November report also include CBP's need for updated guidance on the physical examination of high-risk cargo and improvements in the enrollment of low-risk, C-TPAT certified highway carriers in the Free and Secure Trade (FAST) program. DHS now provides the following ways in which CBP has addressed these challenges:

Chemical, bio, etc. threat exams. CBP has updated the Anti-Terrorism Contraband Enforcement Team National Directive to address terrorism threats and outline minimum procedures for CBP officers to follow when performing anti-terrorism examinations, including specific procedures for inspecting for chemical, biological, nuclear, and radioactive threats. The directive is awaiting final approval. CBP is also participating in DHS initiatives focused on biological and chemical threats to the U.S. and is working to update and develop new rule indicators in the inbound cargo CBP Automated Targeting System (ATS-N) to target high-risk shipments. By participating in these initiatives, DHS states CBP will be well-positioned to identify pathways that pose the highest risk of biological and chemical weapons entering the country. This will ensure that the appropriate guidance and training is provided to CBP personnel.

C-TPAT security questions, training. To address an OIG recommendation, C-TPAT¹ has updated the Web-based partner security profile to include additional security questions and has conducted refresher training for supply chain security specialists (SCSSs) regarding review of the security profile and vetting procedures. The C-TPAT program conducts quarterly random management reviews of newly certified security profiles for highway carriers to ensure the accuracy and consistency of the decisions made by the SCSS.

(In its report, the OIG identified nine broad areas of major challenges facing DHS, including (1) Acquisition Management; (2) Information Technology (IT) Management; (3) Emergency Management; (4) Grants Management; (5) Financial Management; (6) Infrastructure Protection; (7) Border Security; (8) Transportation Security; and (9) Trade Operations and Security. See the DHS financial report for more information on steps the department has taken to address these challenges.

This is one of three reports on FY 2011 that DHS will publish. DHS' Annual Performance report is scheduled to be published on February 6, 2012, and its Summary of Performance and Financial Information on February 15, 2012. When published, all three reports will be available here.)

¹As of October 2011, C-TPAT has 10,189 certified partners worldwide and has conducted 18,872 on-site validations of manufacturing and logistics facilities in 97 countries, representing some of the highest risk areas of the world.