COAC Subcommittee Draft Says Cooperation/Communication is Key for International Trade

The draft (here) said it “presents the foundational principles” for efficient cross-border trade: “The goal is to promote an interagency cooperation that builds trust between CBP, partner U.S. government agencies, and the U.S. trade community. … These principles establish a platform for the trade community and government agencies for the future of data exchange, engagement expectations, and the development of a cooperative approach to achieve the appropriate risk-based mitigation standards that secure cargo movement and facilitate trade at the speed of business.”

“The ideals … represent an attempt to modernize trade procedures and to drive a streamlined approach for the trade community and government,” the draft said. “While some of the goals might take years to achieve, the subcommittee recommends preliminary action now to begin building the appropriate foundation for progress”

Key principles in the draft include:

• “All U.S. Government agencies involved in the import process must work together to share data, and address common concerns for U.S. inbound cargo for all modes.” It suggested forming cross-government councils to facilitate bi- and cross- directional dialog.
• Government agencies should focus on strengthening partnerships, sharing information, and the exchange of data. CBP can play a coordinating role in these efforts, for example within the Centers for Excellence and Expertise to ensure a consistent message.
• Using advance data in the current import process should enable Customs and other government agencies to accept a harmonized advance set of data elements. It should include targeting/profiling (analysis and findings) and the ability for each agency to establish/retain their individual definitions of “High-Risk” cargo.
• Companies must ensure that all parties involved in the movement of cargo are following specific standards in securing and handling goods, as well as be able to provide the information that is required.
• The trade will be responsible for establishing the partnership, and meeting partnership guidelines. In exchange, we shall obtain “authorized status” from Customs and the relevant/applicable Participating Government Agencies (PGAs). The trade would designate a PGA “Principal point of contact” within a company. Individual(s) would have signatory authority/authorization to realize a PGA paperless environment.
• Cooperation on a multi-tiered approach to facilitation and compliance modernization would have a similar and predictable process to establish guidelines, understand and characterize the threats, and monitor for improved or relaxed guidelines.
• Participant Performance Monitoring includes measures to determine continued program participation, measures to communicate participation costs and benefits, particularly as they relate to freight dwell or entry processing time benefits, and measures to communicate enforcement or new program effectiveness.
• Government should leverage Centers of Excellence and Expertise to facilitate bi-directional education within an industry to facilitate bi-directional education across industries, align strategies, and create account portfolio holders, to be one holder of government information and guidelines, and allow one way of communicating changes across agencies.
• There needs to be a clear process for dispute resolution and mitigation requests for escalating issues.
• For harmonized metrics/data, there should be mutual accountability with established key performance indicators across government, specific to a PGA and across an industry, as well as a commitment to rapid issue resolution, and to review historical data, identify and address trends in performance over time.
• Government and trade must consult regularly on matters of mutual interest including supply chain security and facilitation measures.
• It also said one release window for all agencies will enhance efficiencies and release goods quickly with the lowest cost. It would also allow all PGAs access to review data submitted by a filer/importer with the ability to release an entry in one message utilizing the ITDS foundation, and store the ongoing member profile information covering all agency programs that apply to an importer in a central repository.
• U.S. government agencies should coordinate their reviews of trusted partners, in order to gain efficiencies and reduce duplicate/redundant work for both trade and government.
• Participation in Trusted Trader Programs should remain voluntary, and the application process should be centralized and contain a core set of data that is applicable across all agencies, with the ability of the applicant to then provide additional data that’s agency-specific.
• The existing framework for C-TPAT/ISA should be leveraged -- established programs for cargo security as well as other programs that facilitate trade flows should be recognized as a base in order to make the process as efficient as possible.