CBP Posts its Answers to Trade Questions from the November 2005 Trade Symposium (Part V - Final)

This is Part V, the final part of a series of summaries on this document and highlights CBP's answers to questions posed in response to CBP's Senior Managers' Forum.

How will a certified and validated C-TPAT member who has adopted "best practices" be notified/recognized as a Tier 3 importer? CBP states that upon completion of a validation, the member is notified in writing of his or her status (Tier 2 or 3). Additionally, the assigned Supply Chain Security Specialist can act as a subject matter expert and help the company enhance its security measures in order to obtain the higher tier. The CTPAT Office has internal procedures regarding the elevation of members from Tier 2 to Tier 3.

What are the components of an Automated Targeting System (ATS) risk score? CBP states that there are a substantial number of factors that are systematically reviewed to determine shipment risk scores. Past compliance history, other agency requirements, and current security developments worldwide are among the elements considered when CBP systematically reviews cargo shipments. CBP states that there are effective means available for companies to positively affect the potential risk associated with their cargo: participation in the Customs-Trade Partnership Against Terrorism (C-TPAT) program to ensure effective security controls throughout the logistics chain; partnering with service providers (carriers and brokers) who are C-TPAT participants; and provision of accurate and complete data by service providers in accord with the 24-hour electronic manifest requirements and entry submission guidelines.

What are the timeframes for how long CBP has to complete an inspection of an entry? CBP states that it makes every effort to conduct its inspections as soon as the merchandise is available to be inspected. This usually occurs on the same day that the merchandise has been delivered to CBP in a way that allows for examination. In many ports this is when the merchandise is available for inspection at a designated facility such as a Centralized Examination Station (CES) or Container Freight Station (CFS). CBP states that most of the delays fall into one of these three categories:

Delays in transferring merchandise from place of arrival to place of examination - CBP states that these can usually be attributed to lack of available examination space or failure of the responsible party to arrange for transfer of the merchandise.

Failure to provide correct information - CBP states that these are usually failures by importers and brokers to provide required information to CBP or other government agencies. Frequently trade partners fail to pass on release and movement messages provided by CBP. Both of these communication breakdown scenarios contribute to the high cost of demurrage.

Merchandise held by government - CBP states that in limited circumstances it or another government agency will hold, seize or detain merchandise pending action by the importer (or carrier). When this occurs, it is CBP's responsibility to notify the relevant (responsible) party that their merchandise is being held for some reason and what action they need to take.

According to CBP, importers should always contact their carriers and/or forwarders first to determine location and status of their merchandise. If an entry has been filed, Customhouse brokers can provide information regarding status and any additional items that may be needed to effect release of the importer's merchandise. Finally, the local CBP office for the port where the merchandise is held should be contacted to determine the steps that need to be taken for release of merchandise or deal with any enforcement or compliance actions taken by government. The local Port Director is the official responsible to oversee all CBP tasks required by regulation and law.

Why can CBP not taken an initiative to stop the publishing of import/export trade data (such as PIERS)? CBP states that it is aware that various purveyors of trade data publish information obtained from Vessel Manifests. These actions are authorized by 19 USC 1431 and 19 CFR 103.31. 19 U.S.C. 1431(c) requires that CBP make available for public disclosure certain manifest information when contained in a vessel manifest, unless the importer or consignee make a biennial certification claiming confidential treatment of such information. CBP states that to close this loophole would require an amendment to the controlling statute 19 U.S.C. 1431 and then a change to CBP's implementing regulations.

Will CBP focus on trade assistance such as commodity seminars, marking or valuation seminars, and informed compliance publications? CBP states that to date, its Office of Regulations and Rulings (OR&R) has not disapproved any request from any Trade Association to provide outreach and training, either through National Import Specialist-related Public Outreach or through the participation of OR&R Headquarters personnel. CBP states that it will continue to positively respond to such requests. CBP also states that OR&R has written a number of new Informed Compliance Publications that currently are in the review/publication process.

(See ITT's Online Archives or 12/30/05, 01/05/06, 01/09/06, and 01/10/06 news, 05123005, 06010510, 06010910, and 06011010, for Parts I-IV in this multi-part series of summaries.)

CBP answers to Trade Symposium questions (dated 12/23/05) available at http://www.cbp.gov/linkhandler/cgov/import/communications_to_trade/trade_2005/answers_qcards.ctt/answers_qcards.doc.