On December 16-17, 2011, the House and Senate agreed to the conference report on H.R. 2055, a bill to provide appropriations for most federal government agencies1 for the remainder of fiscal year 2012, including the DHS (which includes CBP, ICE, and TSA). Although H.R. 2055 contains $11.7 billion for CBP, an increase of $362 million over the FY 2011 level, FY 2012 funding would be reduced for automation modernization, international cargo screening, C-TPAT, etc. (Note that some press reports suggest that the President wants an agreement on the payroll tax cut before he will sign H.R. 2055 into law.)
The Department of Homeland Security's Office of Inspector General has issued a November 2011 report identifying the major management and other challenges the department faces. Among these include U.S. Customs and Border Protection's lack of oversight tools to ensure that participants in the Importer Self Assessment (ISA) program comply with federal requirements; and CBP's lack of controls over the Single Transaction Bonds process. Challenges also remain with agencies' examination of high-risk cargo.
U.S. Customs and Border Protection has posted an overview and a list of frequently asked questions and answers on its Industry Integration Centers, which were formerly referred to as Centers for Excellence and Expertise (CEE). Among other things, CBP provides information on who can participate in these Centers, how these Centers will affect the processing of shipments, and what benefits they provide.
At the December 5, 2011 COAC meeting, COAC and CBP officials discussed various issues related to the Customs-Trade Partnership Against Terrorism (C-TPAT), including a C-TPAT pilot for exporters. COAC and CBP are also working to gather information on providing tiering benefits to C-TPAT highway carriers. In addition, CBP is urging COAC input on enhancements to the C-TPAT web portal.
The following are details of the “Beyond the Border” Action Plan agreed to by President Obama and Prime Minister Harper on December 7, 2011. The plan includes specific actions and 2012-2014 target dates to achieve goals such as: (i) common data elements for advance cargo screening; (ii) mutual recognition of air cargo security programs for passenger aircraft; (iii) attempted alignment of Canada’s Customs Self Assessment (CSA) and the U.S. Importer Self Assessment (ISA) programs; (iv) assessment on ways to move wood packaging material inspections away from the border; etc.
The Department of Homeland Security is seeking comments on the “Beyond the Border” Action Plan announced by President Obama and Prime Minister Harper on December 7, 2011. The plan, which sets specific actions and dates, is one of the agreed steps to help the two countries realize the goal of a “perimeter approach” to security and economic competiveness declared by the two leaders in February 2011.
At the December 7, 2011 COAC meeting, CBP officials provided an update on the status of the planned test of Automated Commercial Environment Simplified Entry (SE) in the air environment. Officials stated that CBP’s target date for the first SE filing is late January 2012. CBP also plans to test SE in the ocean and rail environments after M1 is deployed and hopes to soon include additional complexities (PGA entries, etc.) in the test.
On December 7, 2011, President Obama and Canadian Prime Minister Harper agreed to implement action plans for their Beyond the Border and Regulatory Cooperation Council initiatives, which include mutual recognition of air cargo security programs; harmonization of transborder advance data requirements for cargo; a single window for importers to submit information; harmonization of C-TPAT and PIP; coordination of border infrastructure; 29 initiatives to align regulations; etc.
U.S. Customs and Border Protection has issued a press release stating that it and the European Union Taxation and Customs Union Directorate have agreed to language for the U.S.-EU Mutual Recognition Decision that will lead to its signing in the Spring of 2012. Once signed, the Mutual Recognition Decision will recognize the respective trade partnership programs of the U.S. and the EU—CBP’s Customs-Trade Partnership Against Terrorism and the EU’s Authorized Economic Operator—with reciprocal benefits. (See ITT's Online Archives 11120107 for summary of EU releases stating that mutual recognition was expected by July 2012.)
Mexico Customs (Aduanas) has posted information on its recently rolled out trusted shipper program, Nuevo Esquema de Empresas Certificadas (NEEC), which builds on the existing trusted trader program for “Certified Companies” by adding minimum security requirements, tax obligations, etc. The program is currently being rolled out for importers and exporters, and Aduanas is expected to begin reviewing applications in January 2012.