CBP Moving Toward Taiwan Mutual Recognition, Gives More Detail on Requirements in FAQs Update

CBP updated its Frequently Asked Questions (FAQs) regarding the process toward achieving mutual recognition arrangements (MRA) and bilateral understandings between two customs administrations. Among new material included since the previous version, CBP notes "an MRA is expected to be signed with Taiwan in the Fall of 2012." The update also includes additional detail on the process for mutual recognition of the Customs-Trade Partnership Against Terrorism (C-TPAT) program and foreign industry partner programs

The C-TPAT MR process has been adopted by other Customs Administrations as they engage in MRA negotiations, said CBP. The C-TPAT mutual recognition process involves four (4) phases, which the updated FAQs now provide in more detail. The four phases are:

• A side-by-side comparison of program security requirements to determine if the programs align on basic principles. During this stage, CBP also requests other data from the foreign partnership program -- such as eligibility requirements; statistics; number of personnel conducting the audits for the program; and any other data that may help C-TPAT understand the other program better in order to determine if the two programs are indeed compatible.
• A pilot program of joint validation visits and a one-day program exchange visit to the Headquarters Customs office of the foreign partnership program. The joint validations are designed to determine if the programs align in basic practice. Prior to participating as an observer in these validations, C-TPAT meets with its counterparts to learn how their Authorized Economic Operator (AEO) program was designed, how it is managed; and to assess the level of expertise in supply chain security of the folks conducting the audits or validations on behalf of the AEO. The World Customs Organization defines the AEO as "a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards.” During this visit, the entire life cycle of a company -- from submitting an application, to vetting, to validation, to monitoring, to possible suspension or removal from the program -- is explained.
• The signing of the mutual recognition arrangement. The first five MR Arrangements signed by CBP were signed at the World Customs Organization’s Headquarters in Brussels. The MR Decision signed with the European Union in 2012 was signed in CBP Headquarters in Washington DC. MRAs are signed by the senior leaders of each Customs organization.
• The development of mutual recognition operational procedures, primarily those associated with information sharing. CBP has developed and implemented an automated mechanism for the exchange of program data. Data flows from and to the foreign participating AEO MR partner through formal official channels and in a secured manner.

(See ITT's Online Archives 12110118 for summary of the agency's recently updated fact sheet on mutual recognition.)