CBP Going Through 'Corporate Reorganization,' Brokers a 'Key Conduit,' Says McAleenan

CBP is undergoing its "own version of a corporate reorganization" as the agency continues work to increase the role of the Centers of Excellence and Expertise, said Deputy Commissioner Kevin McAleenan , who spoke during the National Customs Brokers & Forwarders Association of America Government Affairs Conference on Sept. 16. The agency is aligning its staff with how industry is set up, he said. That includes adjustments to the agency's field operations, the Office of Trade and legal counsel, all of which is helping CBP develop a better "compliance and security posture," said McAleenan.

CBP will be taking a step further as part of the realignment "in the coming months" as it will give three CEEs the ability to handle the processing of all transactions within an industry regardless of the port the goods are entered, in order "to test the environment, and see what's working and what's not," he said. CBP announced plans for the three CEEs -- the Electronics CEE in New York, the Pharmaceutical CEE in Los Angeles and the Petroleum CEE in Houston -- earlier this year (see 14030613. The "next phase for these centers will allow CBP to fully examine new and innovative concepts, procedures and practices with the trade community" and once CBP is satisfied those CEEs are "running smoothly,' the agency will bring the others on board, said McAleenan.

Brokers will have big part to play as CBP moves toward the CEE structure, he said. "Brokers are the key conduit for this effort, because we will be taking the transactions, port by port, throughout the nation, based on tariff numbers," he said. "As brokers you will need to make sure the importers know that their transactions will now be handled by centers" rather than the ports of entry, said McAleenan. Importers "will still be submitting their information, as they always have" with brokers' help, but CBP will be processing it "in a different way," McAleenan said. McAleenan also noted that CBP has seen an increase in its revenue collection in recent years, something that can be partly attributable to improved customs broker compliance work, he said. That's also shown by the decrease in broker violation cases, which have dropped 67% since 2009, said McAleenan.

The agency is also taking a new approach to its trusted trader programs, said McAleenan. Considering that "every business model manages its level of trade compliance differently, given the size of the company and the risk of the commodity or good," CBP is trying to take a "more flexible approach" with the trusted trade pilot program that combines CBP’s Customs-Trade Partnership Against Terrorism supply chain security program with its Importer Self Assessment (see 14061320), he said. The pilot will begin "by the first of the fiscal year" and will run for about 18 months, he said.

CBP is also "actively working" with the 47 agencies that have responsibilities at the border to harmonize "their single window requirements and building solutions that will allow you to submit import or export data in a single electronic file that will satisfy any of those partner government agency requirements," he said. "It will replace a number of paper forms that are being used and we're on schedule and on track to accomplish that." McAleenan also noted a coming "culture shift" that will result in the move to e-bond for single transaction bonds. E-bond will allow for electronic bond filing at any time and will give CBP better transparency into the number of bonds filed against transactions, giving the agency more accurate records, he said.

CBP is also working to solve a backlog in the processing of broker licenses, McAleenan said. CBP plans to use its Global Entry system, which connects to the agency's background platforms, to process broker applications at the ports, he said. "Today, we've eliminated the backlog and expedited the brokerage licensing process so now after we receive the port's recommendation, it only takes a matter of weeks for a broker to receive his or her license," said McAleenan. As of November, 42 ports will be able to process broker applications using Global Entry, he said.

The agency will also be taking a closer look at using the NCBFAA-suggested "Known Importer Program," said McAleenan. CBP in January will begin collecting information in the Automated Commercial Environment for the program, which is meant to leverage some basic information brokers collect about their clients, he said. From there, the agency will then consider if it would like to use that information within its risk assessments, McAleenan said. CBP has previously shown some interest in the idea despite some concerns with beginning an official pilot program (see 14041502).