Overview of COAC Meeting: ISF Holds, Electronic Document Viewing by PGAs, C-TPAT, Etc.

On November 9, 2010, the Departmental Advisory Committee on Commercial Operations of U.S. Customs and Border Protection and Related Homeland Security Functions (COAC) met in Washington, DC to discuss a variety of trade issues.

An overview of the discussions include:

CBP Ports Can Respond to Non-Filing of ISFs with NII Holds, No DNLs Issued

A CBP official discussed importer security filing (ISF) enforcement and told COAC that in cases where no ISF is filed, CBP is allowing the ports to place non-intrusive inspection (NII) holds on cargo. CBP stated that it has not yet issued do not load (DNL) orders and is not placing indiscriminate, indefinite holds on such cargo.

CBP Testing ACE Document Imaging to Give PGAs Electronic Access to Trade Documents

CBP officials provided a demonstration of CBP’s new Automated Commercial Environment document imaging system (DIS) which will provide various document submission, storage, and retrieval capabilities to CBP, relevant International Trade Data System (ITDS) participating government agencies, and the trade.

CBP has begun testing the DIS with a few ACE early adopters from the trade community. According to CBP, the Environmental Protection Agency (EPA) is the first PGA to try the DIS. DIS will be rolled out in a measured fashion, so as not to overwhelm CBP.

CBP Continues to Make Progress on C-TPAT Mutual Recognition

According to a CBP official, CBP continues to make progress on implementing Customs-Trade Partnership Against Terrorism (C-TPAT) mutual recognition. CBP has accepted 92 C-TPAT validations performed by Japan and Canada, which represents a $250,000 cost savings to CBP (since it will not have to do the validations itself).

In addition, CBP is now looking to conduct joint validations with EU member states. CBP will begin with two EU member states and then evaluate where to go from there. CBP is also helping Mexico establish its own industry partnership program and is working with China to ensure that joint C-TPAT validations continue.

CBP to Hold Two C-TPAT Conferences in 2011

According to a CBP official, CBP will be holding two C-TPAT conferences in 2011. The first conference is scheduled to be held on March 29-31, 2011 in San Diego, CA and the second conference is scheduled to be held on June 8-9, 2011 in New Orleans, LA.

CBP Hopes to Issue Notice on IPR Voluntary Disclosure Project Soon

A CBP official provided a status update on many of COAC’s recommendations for improvements to intellectual property rights protection.

IPR voluntary disclosure. COAC has provided CBP with comments on an IPR voluntary disclosure program and CBP hopes to have a Federal Register notice published soon.

Five year strategy. CBP is continuing to work on the joint CBP/Immigration and Customs Enforcement (ICE) five year strategy, which will be issued to the public when it is completed.

Information sharing. CBP is working with the White House Intellectual Property Enforcement Coordinator to address COAC’s recommendation that IPR rights holders be provided with more information regarding possibly infringing shipments.

CBP Considering Further Guidance to Ports on STB Uniformity

The COAC Bond Subcommittee leadership continued to express concern about a CBP-issued memorandum or directive to the field on single transaction bonds (STBs) which apparently resulted in differing enforcement and interpretation in the field.

A CBP official tried to reassure COAC that the document that CBP put out to the field was nothing more than a general reminder to the ports of their ability under the regulations to request additional security and did not provide any other instructions regarding STBs. CBP’s Office of Trade is considering issuing further guidance to the ports on STBs.

Draft Report to Congress on Lacey Act Now Under DOJ Review

An APHIS official noted that the draft report to Congress on the 2008 Lacey Act amendments (including the declaration) is being reviewed by the Department of Justice. The Agriculture Secretary is expected to sign the report in late November/early December 2010.

(The 2008 Farm Bill requires the Agriculture Secretary, not later than two years after enactment, to review the implementation of the Lacey Act amendments and report to Congress. See ITT’s Online Archives or 06/6/10 news, 10061646, for most recent BP summary on the status of the report.)

Wood Packaging Material Continues to Concern CBP

During a discussion of agricultural issues, a CBP official expressed continued concern about pests found in wood packaging material (WPM). COAC recommended that CBP and the Animal and Plant Health Inspection Service (APHIS) consult with other countries who have successfully addressed the WPM pest problem.

CBP Draft Bond Directive Still Under COAC, CBP Review

COAC has submitted its comments regarding CBP’s draft bond directive rewrite and CBP will work to address those comments. CBP will continue to work with COAC and other interested trade associations on additional revisions to the draft.

(In April 2010, a CBP official informed the Subcommittee that CBP was undertaking a re-write/update of current CBP bond directives (Monetary Guidelines for Setting Bond Amounts, #099 3510-004 and Bond Sufficiency, #099 3510-005), in order to consolidate all of the various amendments, telexes, and procedures that exist for managing the CBP bond process into one directive. See ITT’s Online Archives or 05/03/10 news, 10050306, for previous BP summary.)

Cargo Release Will be Next Big ACE Development Effort

A CBP official stated that cargo release development will be CBP’s next big ACE development effort. CBP is currently in the requirements gathering stage with cargo release. The requirements gathering process is expected to take at least six months.

(See ITT’s Online Archives or 09/13/10 news, 10091312, for BP summary of August COAC meeting at which CBP officials stated that after M1 (e-Manifest: Ocean and Rail), cargo release would be the next ACE priority.)

Enhanced PSC Capability Scheduled for Spring 2011

Over the past few weeks, CBP did an internal rollout of its enhanced post-summary correction (PSC) capability and is targeting the release of its enhanced PSC functionality for spring 2011.

(See ITT’s Online Archives or 11/01/0 news, 10110110, for BP summary of CBP webinar on ACE at which CBP stated that it expects to deliver PSC by spring 2011.)

Bond Centralization Rule Expected Soon

A CBP official stated that CBP has addressed all of the comments it received regarding its January 5, 2010 proposed rule to update 19 CFR Parts 101, 113, and 133 to reflect the centralization of the continuous bond program at CBP’s Revenue Division. CBP hopes to issue a final rule soon.

(See ITT’s Online Archives or 03/26/10 news, 10032615, for BP summary of comments on CBP’s proposed rule.)

ACE Found to be a High-Risk IT Project by OMB

A CBP official discussed how CBP responded when the Automated Commercial Environment was designated as a high-risk information technology project by the Office of Management and Budget in August 2010. According to CBP, an improvement plan is being implemented and CBP has received positive feedback from OMB and the Federal Chief Information Officer, especially for the creation of an ACE Business Office.

(See ITT’s Online Archives or 10/13/10 news, 10101308, for BP summary of DHS finding that ACE is moderately “high risk” IT program.)

CBP Began Two “Management by Account” Pilots on Nov 1

On November 1, 2010, CBP began two management by account pilots. CBP began a Center of Excellence and Expertise pilot for the pharmaceutical industry in Los Angeles, CA. If CBP is satisfied with the pilot, it could roll out the CEE concept on an industry by industry basis. CBP also began an Account Executive pilot to engage trusted partners in the electronics industry. These pilots are intended to facilitate CBP’s move to dealing with the trade on an account basis (rather than on a transaction basis).

(See ITT’s Online Archives or 10/26/10 news, 10102613, for BP summary announcing these pilots.)

Some COAC members expressed disappointment that CBP was not able to make more progress on the entry and financial simplification aspects of management by account.

CBP Highlights Results of 2010 C-TPAT Survey

A CBP official discussed at length the results of the 2010 C-TPAT cost-benefit survey prepared by the University of Virginia.

(See ITT’s Online Archives or 09/24/10 news, 10092420, for BP summary on the results of the 2010 survey.)

Air Cargo Terrorist Threat, Inter-Agency Import Safety Conference Discussed

During his opening remarks, CBP Commissioner Bersin discussed the recent terrorist attempt involving air cargo from Yemen. The Commissioner also discussed the October 21, 2010 Inter-Agency Import Safety Conference and the six principles adopted as protection against unsafe imports.

(See ITT’s Online Archives or 10/22/10 news, 10102210, for BP summary of conference, including six principles.)

CBP press release on meeting available here.