From USA-ITA OFF THE CUFF for May 29, 2012

We’re constantly hearing that USA-ITA members want more opportunities to voice your concerns to U.S. Customs & Border Protection (CBP), perhaps more than any other government agency. CBP has apparently heard the cry for more conversation, too. On Tuesday, May 22nd, the agency hosted an Industry Day in Washington, an opportunity for an “open dialogue” about CBP’s perspectives and strategies for the coming year. Titled, “Evolving Border Security & Trade Missions: Insights & Discussion with Industry,” the full-day event brought together CBP officials from all departments and industry insiders who utilize CBP every day. While the event was geared toward the technology industry, who primarily wants to sell their products to CBP, we were able to glean some interesting insights on CBP’s goals regarding expediting trade and cargo security.

After Mark Borkowski, Assistant Commissioner at the CBP Office of Technology Innovation & Acquisition, kicked off the discussion, Under Secretary for Management Rafael Borras gave the keynote presentation. He emphasized the need for industry to communicate with CBP—especially if you think that another division of the Department of Homeland Security is utilizing technology that could be helpful in CBP’s operations. Both Assistant Commissioner Borkowski and Under Secretary Borras noted that they are planning many more events like this one—as well as continuing the one-on-one meetings with industry—and welcome feedback.

The first panel was titled “The Strategic Challenges of Border Security” and was moderated by Robert E. Brown, Director of Business Operations at the CBP Office of Technology Innovation & Acquisition.

Of particular note to importers were the remarks by Kevin K. McAleenan, Acting Assistant Commissioner of the CBP Office of Field Operations, who works primarily on trade and travel issues. He said that there has been a vast increase in traffic and travel at the ports of entry, and given CBP’s limited resources and finite infrastructure, this increase in volume and speed creates challenges. However, he noted that there has also been an increase in facility growth—with 47 improvements in the past two years—and CBP has plans for continued growth in this realm. Like other CBP officials have told USA-ITA members, McAleenan also said that CBP’s goal is to prevent terrorists, weapons, and narcotics from entering the United States while at the same time facilitating legitimate trade and travel—which is 99 percent of all trade and travel. In order to do this, CBP needs industry insights on issues like automation, targeting, and most importantly, the trusted trade/traveler programs such as Customs-Trade Partnership Against Terrorism (C-TPAT). He said these programs are working, as 55 percent of goods enter via trusted partners and these goods can be moved three times as fast as non-trusted goods. CBP hopes to see more companies join, too, so they can “get vetted supply chains out of focus.”

Also noteworthy, Eric Coulter, Deputy Executive Principle for Program Development, talked about the need for public-private ventures and partnerships in CBP’s trade and travel operations. He said they are looking at the Port of Miami right now, especially with the plans to widen the Panama Canal in 2024 which will increase trade at this port even more. To deal with this, he said, CBP will need to shift people and technology to manage the demand—and he, too, welcomes industry insight.

Other speakers on the first panel included representatives from the Office of Border Patrol, the Office of Air and Marine, the Wireless Systems Program Office from the Office of Information & Technology, and the Homeland Security Advanced Research Projects Agency (HSARPA).

The second panel was also noteworthy for importers. Titled “Expediting Trade & Travel,” the discussion focused on CBP’s trade and travel strategies and what industry can do to help. Charles E. Stallworth II, Acting Assistant Commissioner of the Office of International Affairs, said that industry should “start with the embassy when doing business overseas.” He noted that his priorities are first terrorism, then transnational crime, then trade enforcement, and he is working to expedite these securely. In particular, his office is working on a joint training program in Asia in order to have more security and more expediency in trade and travel. Valerie Isbell, Executive Director of the Passenger Systems Program Office, said that industry should network and voice concerns to CBP together to keep CBP informed of what’s happening and what’s ahead.

Vincent Annuziato, Director of Cargo Control & Release, and Christopher Kennally, Deputy Executive Director of Cargo & Conveyance Security, had some insights on expediting trade, and want specific information from industry. They both said that trade can be expedited if they get the data sooner—but does industry want to give them the data sooner? Kennally said industry should “lay out the business process” so they can better understand the data and when you get it, and as a pilot program has shown, this can expedite packages significantly. Annuziato also noted that they are working on mobile apps and QR codes as methods to expedite cargo, too, especially for trusted partners.

As this event showed, it’s important for industry—especially importers—to communicate with CBP about business practices and needs, and USA-ITA will continue to facilitate meetings with officials so that these critical conversations can occur.

The CBP press release on the event is available here.