Customs Brokers a 'Vital' Partner with CBP, Though Industry Reinvention Likely, Says Gina

The customs brokers have been and will continue to be a necessary part of CBP's trade mission, but coming regulatory changes may require some "reinvention" within the industry, said Al Gina, a former head of CBP's Office of International Trade. Similarly, CBP made some major adjustments during Gina's time there due to new budgetary constraints, an issue that continues to loom over CBP as it works to develop both long and short-term initiatives, he said. Gina, who recently retired from the agency and is now a partner at CT Strategies (see 13111217), discussed a number of agency initiatives and his new work during a wide-ranging interview on Jan. 9.

Between efforts to rewrite customs broker regulations and the ongoing emphasis on virtual environments, like the Centers for Excellence and Expertise (CEEs), the customs broker industry will likely require some updates, but that should not be cause for concern, said Gina. "If the brokerage community of the past generated their revenue by doing" certain paperwork and if government agencies, not just CBP, make the move toward a paperless world, "one can say that without any kind of transformation or reinvention of themselves, 'Yeah, people aren't going to have to fill out any paperwork anymore because it's all going to be automated,'" said Gina. But similar realities have not meant the end of other industries, such as the stock brokerage industry, he said.

"I think the brokerage community's value will always be needed just because of their knowledge," he said. " I think the brokers are always going to be needed as the interlocutor between the import/export community and the regulatory agencies" no matter how successful programs like the CEEs, Simplified Entry and ACE are. The work 10 years from now may be "completely different" but the role will always be "vital," he said.

The CBP work toward defining the "Role of the Broker" and what it will be in 2015 or 2020 is a critical undertaking for both CBP and brokers and the agency has been "very transparent with the broker community" in giving them what the CBP strategic vision is, said Gina. "I think my credibility would be at stake if I just painted it one rosy great working relationship environment," he said. One ongoing challenge for CBP in dealing with the broker community is the occasional disconnect between regional broker groups, though it would be "naive to say everyone's going to be completely aligned on everything," he said. Gina credited the work of CBP's Senior Advisor for Trade in the Office of Trade Relations Maria Luisa Boyce, who is often tasked with finding some agreement among industry.

Working with Congress

Interaction between CBP and Congress is "very effective but challenged" by the number of committees and subcommittees that oversee the Department of Homeland Security and feel they have jurisdiction over CBP, he said. For instance, the customs reauthorization bill "is probably just as challenged in getting agreement within the varying committees of the Hill as it is between CBP and the Congress," he said. Among CBP concerns with customs legislation are overly "restrictive divisions of labor within the agency," he said. Some versions of the bill have called for the installing separate Deputy Commissioners for Trade and Enforcement (see 13032610). If "Congress felt that CBP is neglecting one responsibility in lieu of another, I think that can be addressed through either hearings or discussions or dialog," but the legislation potentially removes "the flexibility of the Commissioner to address emerging threats," whether within the commercial or national security sphere, said Gina.

There's widespread agreement within CBP that a Senate confirmed CBP commissioner is a necessity, he said. There's hope that CBP Commissioner nominee Gil Kerlikowske, currently in the Senate-approved position of director of the Office of National Drug Control Policy, would have "no vetting issues" and could face confirmation from the full Senate in the near future, he said. The Senate Finance Committee scheduled a hearing on Kerlikowske's nomination for Jan. 15 (see 14011304).

The budget constraints were a persistent issue at CBP while Gina worked there, he said. But that forced it to be more creative and to find new ways of doing business, which helped drive a more collaborative relationship with the trade, he said. It also meant for a better understanding of manpower versus capability, said Gina. Congress has yet to understand that additional "boots on the ground" do not always equate to increased capability, he said. For instance, instead of funding for 20 new officers, that money may be better spent on 15 new offices, three canine officers and money for more technical support, he said.

Relationship with the Trade

CBP's move toward more involvement of industry when handing down regulations has meant for a more amicable relationship between the regulator and those it is regulating, said Gina. That "co-creation" principle has given the trade a better appreciation of what the agency needs to do and given the regulators more awareness as to what the trade needs to maintain business, he said. The collaborative mindset has become so ingrained in recent years that it's unlikely that CBP would ever move toward a more hard-line approach for regulation, he said. "There's been enough examples recently over this past several years that has demonstrated to individuals that this is a much more effective and a much more productive way of doing business," said Gina. "That old environment of 'We're the regulators, you just comply'" and that "whole informed compliance is no longer going to exist."

There should not be concern that industry is able to exert too much influence on CBP, said Gina. The relationship is akin to "community policing," he said. It's an advantage to the local police department to "go out and inform and gain the insights and thoughts of the community" and that doesn't mean the otherwise law-abiding community would then take up illegal activity, he said. "The diversity of thought" results in a much better product at the end, he said.

CBP's increased reliance on pilot programs has become a way for the agency to deal with the lengthy regulatory process and get its foot in the door when making changes, said Gina. With the proposed rulemaking process taking 30 months, agency initiatives can be passed over as business practices change while waiting for a final rule, no matter how popular it is, he said. This also allows CBP to collect and address concerns before the regulatory process starts, he said.

New Role

At CT Strategies, a more international trade focused arm of consulting firm Command Consulting Group, Gina and Andrew Farrelly, a former CBP chief of staff, work to give insight to clients that "are trying to address a federal agency need," he said. That insight can be as simple as recognizing which agency to contact, but the focus is one providing enough information to help develop a solution, he said. CT Strategies is also working with customs agencies around the world who look to CBP and other government agencies for "lessons learned," said Gina. As a retired Senior Executive Service from the federal government, Gina is prohibited from petitioning his old colleagues at the agency for a year, and as a result, much of his current work is focused on overseas efforts, he said.

Many countries will require a "new mindset" in their handling of customs to better understand that the regulators can play a role in enabling trade in addition to supporting national security, he said. There are now very few government agencies around the world that already embrace the collaborative view of regulation, said Gina. "I believe they are actually going to be forced into it, you know, whether they do it on their terms or they just do it out of pure economic necessity on behalf of their country," he said.