Rep. Martha McSally, R-Ariz., on July 28 introduced legislation that would reauthorize the Customs-Trade Partnership Against Terrorism (C-TPAT) for the first time in 11 years, McSally’s office announced. The bill would ensure the program provides C-TPAT participants “tangible benefits” and that it is updated to “meet the dynamic threats” facing the global supply chain, the announcement says. “CBP’s partnership with entities throughout the global supply chain helps ensure high standards of security, and it also streamlines cross-border commerce by pre-vetting companies, allowing their cargo to be expedited through our overburdened and undermanned ports of entry,” McSally said in a statement. “It’s been eleven years since this program first began, and it is time for it to be updated to reflect our modern global economy.”
Increased enforcement helped raise the overall submission rate for importer security filings (ISFs) for U.S.-bound cargo (ISF-10s) from 95 percent to 99 percent between 2012 and 2015, but CBP could better evaluate the program’s effectiveness through actions such as comparing manifests with vessel stow plans, the Government Accountability Office (GAO) said in a report released July 20 (here). The GAO recommended several actions to enhance CBP’s identification of high-risk cargo shipments and enforcement of its November 2008 ISF interim final rule, which has been fully enforced since July 2013. The CBP Commissioner should identify and collect additional performance information on the impact of ISF data, such as identifying shipments containing contraband.
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AUSTIN, Texas -- CBP will soon deploy several improvements to its Customs-Trade Partnership Against Terrorism (C-TPAT) program, including clearer questions on C-TPAT questionnaires and a return to a relationship-based approach between C-TPAT specialists and the companies they validate, said Liz Schmelzinger, director of C-TPAT at CBP, at the American Association of Exporters and Importers annual conference on June 22. The agency is also working to fix problems with its cost-benefit data on C-TPAT membership detailed in a recent Government Accountability Office report, she said.
Despite the near elimination of an account for ACE development in the proposed fiscal year 2018 budget (see 1705230031), CBP is requesting additional funding for ensuring the system continues to operate smoothly, according to its FY 2018 budget justification (here). The proposed budget includes an “increase of $45.1 million” in FY 2018 for “ACE Core Functionality,” including funding for additional “software sustainment teams.” CBP is also requesting substantial increases in funding required to implement mandates in the Trade Facilitation and Trade Enforcement Act of 2015.
CBP will lead implementation of President Donald Trump’s March 31 executive order addressing unpaid antidumping and countervailing duties (see 1703310076), the agency said in a fact sheet (here). The executive order (here) designates the Department of Homeland Security as the head government entity to develop plans by June 29 to require importers deemed a risk to U.S. revenue to “provide security” for AD and CV duty liability through bonds and “other legal measures”; to start implementing a strategy to counter violations of U.S. trade and customs laws; and to interdict and dispose of inadmissible merchandise. Interdiction and disposal plans would include “methods other than seizure,” according to the executive order.
First-time importers and importers delinquent on antidumping and countervailing duties may be subject to enhanced bonding and “other legal measures,” under an executive order signed by President Donald Trump on March 31 (here).
CBP posted its fiscal year 2016 Performance and Accountability Report (here) on March 7. The document, released annually, includes an overview of recent CBP activities, an update on whether CBP is meeting its objectives, and the agency’s financial statements. For the first time in four years, CBP met its goal for the percentage of cargo imported by members of trade partnership programs, with 53% of cargo imported by members. The 2015 report had set a goal of 54% of cargo imported by trade partnership program participants, and found 52.2% was imported by members (see 1604060023). At the end of FY 2016, the Customs-Trade Partnership Against Terrorism program had 12,083 participants and 11,506 certified partners, CBP said. The agency missed its goal of collecting 100% of revenue, having collected 99.06% in FY 2016. CBP did meet its goal of 97.5% of imports being compliant with trade laws, posting a 99.18% compliance rate, it said.
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The Commercial Customs Operations Advisory Committee (COAC) for CBP will next meet March 1 in Washington, CBP said in a notice (here).