Bersin Says CBP Needs Management by Account, Updated Practices
On September 27, 2010, U.S. Customs and Border Protection Commissioner Alan Bersin spoke at the NCBFAA Government Affairs Conference. The following are highlights of his comments:
CBP Needs to Change the Way in Which it Does Business
Bersin said that CBP needs to change the way in which it does business. CBP should not consider goods imported into the U.S. as millions and millions of separate lines. CBP needs to aggregate the goods and approach them in a simplified and effective fashion.
He explained that Management by Account will help them achieve this goal. Through Management by Account, CBP will have a new way of approaching trade that will allow CBP to deal with matters of trade based on accounts rather than transactions and permit financial processing to take place in a more expedited and efficient way.
(In May 2009, COAC submitted a white paper to CBP advocating a broad new Account Based Processing concept (also referred to as Management by Account) that would encompass trade compliance, informed compliance, security, intellectual property rights, import product safety, and information technology.
In August 2010, CBP announced it was working on several high impact projects to enable it to pursue an account based approach to doing business. Those listed included Account Executive Program, Centers of Expertise, Risk-Based Account Management, Single Partnership Program, Simplified Entry Process, and Simplified Financial Processing. See ITT’s Online Archives or 08/26/10 news, 10082608, for BP summary.)
Hundreds of CBP Practices are Outdated and Archaic
Bersin noted that many of CBP’s practices are outdated and archaic and do not conform with an electronic age, let alone a digital age. For example, when a customs broker changes the name or his or her firm they are required to obtain a new license. Also, it should not take so long to get a customs brokers license vetted and approved. He noted that there are hundreds of such outdated practices that irritate the trade that he needs to know about so that they can be fixed.
Bersin Wants to Repair Relationship with Trade
Bersin said that since September 11, 2001, CBP has placed a priority on security, which has hurt its relationship with the trade. He understands the perception that the agency is not capable of meeting the needs of the trade or grasping their everyday business requirements. Bersin said he is committed to working with the trade to change their perception, and the reality that gave rise to it.
He added that maintaining U.S. economic competitiveness is important to national security. He wants to drive down the transaction costs of doing business with, and in, the U.S., so citizens can compete economically in the world market.
Bersin Reiterated His Desire for a “Grand Bargain” with Trade
Bersin reiterated his desire for a “grand bargain” with the trade. The more information CBP receives from the trade, the quicker CBP will be able to move the traffic that is lawful and trusted. This will allow CBP to allocate its resources in a more efficient manner.
He noted that CBP will use the given information in accordance with the ground rules in which it was given to them (maintain confidentiality) and will not misuse the data.
CBP Needs to Identify Risks Early On, Far Away from Physical Borders
Bersin also noted that for national security, the agency must utilize space and time in its favor. CBP needs to identify risks as far away from the physical border as possible and as early in time as possible.
For CBP to keep dangerous goods and people away from the U.S., the agency must use its current trade and travel facilitation programs. This will allow CBP to identify early on lawful trade and traffic and segment out risky good and people.
(See ITT’s Online Archives or 06/24/10 news, 10062414, for BP summary announcing that Bersin wants a grand bargain with the trade and that the border must be pushed back in distance and time.)