CBP in Close Contact with Hanjin, Kerlikowske Tells Wesccon
SAN DIEGO -- CBP is in "almost daily contact" with Hanjin Shipping as the insolvent company devises a path for moving cargo to its intended destinations, CBP Commissioner Gil Kerlikowske said at the Western Cargo Conference on Oct. 14. The agency is working to understand the "difficult issues," such as cargo sitting offshore and the storage or movement of cargo at the ports (see 1609300047), he said. "We have made sure that on the West Coast, all of our port directors" know what's going on, he said. The agency is also "well aware" of the problems the situation is causing, he said. Much about Hanjin's future, including a possible sale, remains unclear, the Wall Street Journal reported (here).
Kerlikowske's speech at the conference frequently strayed from the prepared remarks released by CBP (here). CBP is still trying to figure out how to fully implement the customs reauthorization law's provisions despite a lack of additional funding for the agency, Kerlikowske said, covering much ground in his keynote. Major new areas of focus, such as preventing imported goods made by forced labor, "comes at a price," so the agency is still "wrestling through" where to reassign its existing personnel so it can satisfy the provisions, he said. Still, the law calls for expanding ACE through 2018 and "clearly discusses the importance of additional revenues to support the program," he said.
The Centers of Excellence and Expertise at CBP also mark a "big cultural shift for a lot of our employees," he said. Virtual management, with a boss potentially hundreds of miles away rather than in a nearby cubicle, is a big change, he said. The law's creation of executive assistant commissioners (EAC), such as Brenda Smith in the Office of Trade, allows for quicker decision-making because the EACs can now give approval on some things that previously required an OK from the commissioner or deputy commissioner, Kerlikowske said. He noted the agency's delinquency on some reports, such as one to Congress on how CBP can improve importer verifications through customs brokers (see 1609130018), that are required under the law.
CBP will begin preclearance operations in airports in Sweden and the Dominican Republic before the end of the year, he said. The agency is negotiating with eight other countries on preclearance agreements and "recently had an open season" for other interested countries, which "bodes well for the air cargo industry," he said. Kerlikowske's prepared remarks mentioned ongoing work with industry, the Census Bureau, the Bureau of Industry and Security "to lay out the future of Option 4, also known as Post Departure Filing." Among options being considered are information collection through the electronic export manifest, a progressive filing approach or the use of "a trusted trader strategy in the export environment."