CBP and Other Officials Update COAC on Container Seal Rule, ICIS, ITDS, WTO Framework, Etc.
During the May 16, 2006 meeting of the Departmental Advisory Committee on Commercial Operations of the Bureau of Customs and Border Protection (COAC), U.S. Customs and Border Protection (CBP), Department of Homeland Security (DHS), and Treasury officials discussed a variety of trade issues with COAC, highlights of which are provided below:
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ICIS 100% scanning concept. CBP officials commented that the Integrated Container Inspection System (ICIS) technology that is being tested in Hong Kong is a good idea, but that it is still a concept that needs work. According to CBP officials, a lot of testing would need to be done before a formal recommendation on ICIS could be made.
DHS issuance of proposed rule on container seals "on hold." CBP officials noted that DHS' rulemaking to require use of high security mechanical seals on maritime in-bound containers is currently in a "holding pattern." Although the proposed rule has been drafted and has been subjected to extensive economic analysis, officials state that recent legislative proposals have made DHS wonder whether it should go forward with an initiative that may soon be superseded by legislation. Officials noted that if it is decided to proceed with the rulemaking, DHS may seek further advice from COAC.
Additional advance data elements. CBP officials state that they are working on the advance trade data issue with the Trade Support Network (TSN) and that it is one of CBP's top 2006 priorities. According to CBP officials, while it is the government's responsibility to identify the specific data elements needed, trade advice is being sought.
CBP officials state that they are is in the process of identifying the additional data elements they need, and note that there is not significant disagreement on the elements; concerns expressed are more over who would be responsible for supplying that data element (i.e., the source of the data). Officials also state that CBP is still in the preliminary stages of its review.
Radiation portal monitors. CBP sources noted that 90% of all cargo that comes through land borders is scanned by radiation portal monitors. In addition, 57% of cargo arriving by sea is scanned by radiation portal monitors before entering the commerce of the U.S. CBP states that it goal is to scan 80% of ocean cargo by the end of 2006 and 96% of ocean cargo by the end of 2007.
WCO 'AEO' concept. According to CBP sources, the World Customs Organization's (WCO's) High Level Strategic Group (HLSG) recently met to look at documents related to the Authorized Economic Operator (AEO) concept. Those documents are expected to be considered by members at the WCO's annual meeting in June 2006.
(According to the WCO's Framework of Standards to Secure and Facilitate Global Trade, an AEO is a party that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards. AEOs will reap benefits, such as faster processing of goods by Customs, e.g., through reduced examination rates. This will ensure that AEOs see a benefit to their investment in good security systems and practices.)
International Trade Data System. Treasury officials note that there are currently 122 individual users from among the 16 participating government agencies (PGAs) that are currently looking at information in the ACE Web Portal. (See ITT's Online Archives or 05/10/06 news, 06051015, for BP summary listing the 16 PGAs with access to the portal.)
Treasury officials also state that in order to expand PGA participation in ITDS, the ITDS Board of Directors is being expanded beyond the original eight members to include additional PGA members.
In addition, officials noted that CBP's Office of Regulations and Rulings (OR&R) is working with agencies to draft memorandums of understanding (MOUs) for their participation in ITDS. Treasury officials also note that ITDS efforts at data harmonization have fallen behind and steps are being taken to catch up.
Recent legislation. CBP officials stated that the recent legislative activity in Congress is good news and can be viewed as a validation of CBP's direction and efforts. However, CBP officials noted that codifying programs can sometimes reduce flexibility.