New Customs Law Unlikely to Slow Progress Toward AEO Alignment, Says DiNucci

CANCUN, Mexico -- New reporting requirements in the customs reauthorization law aren't expected to hamper efforts to align CBP's Customs-Trade Partnership Against Terrorism program with Authorized Economic Operator programs, said Rich DiNucci, executive director, Cargo and Conveyance Security, at CBP. The law requires CBP to consult with the Senate Finance and House Ways and Means committees before beginning negotiations or entering Mutual Recognition Arrangements (see 1602170074). DiNucci discussed the issue on May 11 during the World Customs Organization's AEO Conference.

CBP is considering ways to better add a trade compliance component to the security-focused C-TPAT through the ongoing Trusted Trader pilot (see 1604290023). Most AEO programs include both trade compliance and supply chain security features. "We'll create the program we'll need to create," he said. While the law is complex and there are "reporting requirements in that legislation," DiNucci doesn't "see this in any way, shape or form see that as any sort of inhibition on moving forward with this program," he said.

As CBP works to evolve C-TPAT into a more globally recognized AEO-type program, "it will become even more critical to link all the elements that are involved in that in terms of how we do a risk assessment, risk management and how we cooperate both bilaterally and multilaterally," he said. Acts of terrorism should have very little effect on a trusted trader program, said DiNucci. The job of the administrators of such programs is to "inject predictability into unpredictable situations," he said. CBP is very much outnumbered by trade and travelers, making internal and international coordination critical, said DiNucci.

Reliability and trust are major components of an effective AEO program, said Antonis Kastrissianakis, director for Security, Safety, Trade Facilitation, DG Taxation and Customs Union (DG TAXUD), European Commission. "We expect Authorized Economic Operators to know who they are dealing with," he said. AEO must be "part and parcel" with risk management at every level of the supply chain, he said. It's also important that AEO continues to expand worldwide and customs regimes enter into MRAs, he said.