Kerlikowske Pledges to Complete ACE, Modernize Export Process at Senate Nomination Hearing

CBP must ensure all efforts are exhausted to complete the Automated Commercial Environment (ACE) in a timely manner and modernize the U.S. export process in order to fuel growth in the U.S. trade community, Gil Kerlikowske told the Senate Finance Committee at a Jan. 15 hearing to consider his nomination for CBP commissioner. President Barack Obama nominated Kerlikowske for the post in August (see 13080219). “CBP needs to continue to prioritize completion of the Automated Commercial Environment (ACE), that is the electronic automated system for the efficient transmission of data to all U.S. government agencies and that will ensure efficient and timely release of cargo,” said Kerlikowske. “I will devote a significant amount of time to ensure that very expensive computer system is up and running and performs the way it should for commerce.”

Kerlikowske is currently the director of the White House Office of National Drug Control Policy, building off a career based in law enforcement. “If you are confirmed, and I expect you to be, your lack of a trade background will not prevent you from making sure that the trade functions of CBP receive the same priority as security functions,” said Finance Committee ranking member Orrin Hatch, R-Utah. “I think you recognize that trade is essential to the growth of our economy.”

CBP enforcement and regulatory activities play a crucial role in the global economy and significantly impact the U.S. public and private sector, said Kerlikowske. CBP enforces more than 500 laws for 47 federal agencies, generates over $40 billion annually in customs revenue and processes more than $2.3 trillion in international trade, he said. CBP needs to be at the “forefront” of international engagement in harmonizing and simplifying customs practice in the U.S. and abroad, said Kerlikowske.

“CBP plays a crucial role in maintaining the flow of trade across our borders. CBP processes nearly two and a half trillion dollars’ worth of goods every year, and it must ensure this process is thorough and efficient,” said Finance Committee Chairman Max Baucus, D-Mont. “Senator Hatch and I introduced a customs reauthorization bill last year. The bill is intended to help CBP prioritize its trade facilitation and enforcement functions, and it provides additional tools and resources to help the commissioner do so. If Mr. Kerlikowske is confirmed, we look forward to being in close and regular communications with him to see that bill through.”

Should the Finance Committee approve Kerlikowske’s nomination, he pledged to work with CBP partners, including industry, to streamline the export process for U.S. companies. “CBP needs to modernize its export process in support of the President’s National Export Initiative to streamline exports and foster growth for U.S. companies,” said Kerlikowske. “This needs to be done in close collaboration with CBP’s private sector, government, and international partners.” CBP must also collaborate with federal agencies in order to enforce intellectual property protections, he said. “There needs to be better communication and better collaboration with the Food and Drug Administration,” in order to ensure counterfeit and unsafe pharmaceutical drugs do not enter U.S. territory, said Kerlikowske. -- Brian Dabbs