Smith Named as Head of CBP Office of International Trade, DiNucci Moves to Cargo Conveyance

CBP Commissioner Gil Kerlikowske promoted Brenda Smith, who previously headed up the Automated Commercial Environment (ACE) business office at the agency, as assistant commissioner in the Office of International Trade, CBP said in a Sept. 11 press release. Smith takes over for Rich DiNucci, who led the Office of International Trade in an acting capacity since Al Gina retired last year (see 13080802). DiNucci was moved to the Office of Field Operations, where he will be executive director of Cargo Conveyance and Security, said the agency.

Smith will be an asset in helping get Kerlikowske up to speed on the international trade front, he told reporters on Sept. 12. Despite a background that doesn't include much trade, "I'm smart enough to know what I don't know, and I think smart enough to try and put the right people in place that really know these issues," he said. "Her selection is particularly important and we're working hard" to find a replacement at the ACE business office, he said, which Smith ran since August of 2012 (see 12081721). Kerlikowske said he's committed to not taking his eye off of ACE as Smith moves on. While there's been some recent high-level departures from the agency and "losing Al Gina and others is tough," there's "a deep bench here," Kerlikowske said. Smith, who also met with reporters, spoke of a continued emphasis on automated processes and communication with industry to help smooth the flow of trade. Being able to draw on industry expertise to "ensure that the rules and regulations that we are trying to enforce are communicated clearly and transparently," helps the agency to do a better job, she said. The shift in perception at CBP for the agency's goal of trade facilitation will continue to be a goal for Smith, she said.

Smith pointed to three goals as CBP moves to "the next phase of transformation." First, CBP should put its regulations and practices "under the microscope," as the agency's long history has resulted in some "barnacles," she said. Secondly, CBP must focus on how to use the information it collects "to make better risk-based decisions," she said. The agency and government have a lot of information, and "rather than asking for more, we need to make sure its available to our employees to make good decisions, and that they have the tools to analyze and manage them, said Smith. Lastly, she said expertise will be a focus of hers as there's been turnover from the senior levels down to the port level. That turnover has been one of the "driving reasons behind the Centers of Excellence and Expertise (CEEs)," but there are people not at the CEEs who "need an investment in training" to help with analytic and communications skills, she said.

CBP is still considering whether to allow the CEEs to handle all release functions, rather than just post-release work, said Smith. "At this point CBP recognizes the value that there is when the person making the release decisions is fairly close to the cargo," she said. "But, I think having the CEEs as essentially a second layer to watch 'are we making good risk-based decisions?,'" makes for useful insight, she said. The agency considers trusted trader partnerships as part of a "very complicated web" of ways the agency segments risk, but CBP must use a "holistic approach" to show exactly how partnerships benefit the trade, especially as related to the other government agencies, she said.

It's unclear how Smith plans to proceed with efforts to clarify first sale audit requirements. "I do understand that Mr. DiNucci has made a commitment to sit down and talk through the issues," she said. "As I understand it, it's more about audit practice than first sale itself," though she needs to become more familiar with the issue, said Smith. DiNucci recently took some heat from industry over some proposed changes to an informed compliance publication that would have spelled out how CBP may verify first sale claims, though the proposed changes are said to have been recently dropped by the agency (see 14090816) DiNucci, in his new role, will work on the CEEs and Customs-Trade Partnership Against Terrorism, among other cargo-related issues, said Kerlikowske. "We're working hard to solidify a lot of positions that have had 'acting' in front of them" and there will be more personnel announcements to come as he gets the "team in place," said Kerlikowske. DiNucci was not among the CBP officials who met with reporters Sept. 12.

The National Customs Brokers & Forwarders Association of America voiced its approval for the changes in an emailed statement. “The NCBFAA has enjoyed a great working relationship with both of these individuals for a number of years and is very supportive of these new leadership appointments because these two positions are critical to the NCBFAA's work with CBP,” said NCBFAA President Geoffrey Powell.