Ag Security Most Controversial of New CTPAT MSC; Expedited Rulings Among New Benefits Being Considered, Schmelzinger Says

ATLANTA -- The new agricultural security criteria within the updated Customs-Trade Partnership Against Terrorism (CTPAT) Minimum Security Criteria "is probably the most controversial," said Liz Schmelzinger, CTPAT director at CBP, during a panel discussion at the CBP 2018 Trade Symposium on Aug. 15. "I was told 'slugs are not terrorists,'" she said. Having cargo stopped due to agricultural issues is very expensive and time-consuming, she said. CBP recently began circulating proposed MSC updates to CTPAT members through the CTPAT portal (see 1807300011).

CBP's leadership believes the agricultural security component is appropriate within CTPAT for multiple reasons, Schmelzinger said. "While, of course, it's true to say 'a slug is not a terrorist,' that is a very narrow-minded way of looking at this problem set," she said. "Agriculture issues can disrupt your supply chains significantly. In addition, they can cause damage, unintended." A "few simple steps can prevent a very expensive occurrence on your behalf," she said.

The addition of a cybersecurity component to the MSC is "too late," Schmelzinger said. She said "we should have done this a couple of years ago," and that some CTPAT members that experienced cybersecurity issues in the past say that had "this criteria been in place, they probably would not have suffered that attack." Still, it's "better late than never, and I do think we have considered in a very holistic way the criteria for cybersecurity," she said.

CBP continues to examine potential new benefits to CTPAT membership, including some 50 suggestions from Commercial Customs Operations Advisory Committee (COAC) and Trusted Trader pilot participants, Schmelzinger said. Realistically, not all of those are "even viable" due to statutory or operational constraints, she said. Some ideas, such as allowing for CTPAT members to have examinations moved to other places, would be "a little tough to guarantee for everyone," she said. The agency recently met with the COAC and Trusted Trader members, and CBP asked them for a shorter, prioritized list, she said.

One new benefit being actively discussed is expedited rulings for CTPAT members, she said. "We're working with the Office of [Regulations] and Rulings on developing some kind of indicator for trusted members for expedited rulings," Schmelzinger said. "We'd like to get a 20-day turnaround, that would be the perfect goal, but if any of you have [ever] submitted a ruling, you understand it really depends upon the complexity of the ruling." Other previously mentioned benefits include the use of Advanced Qualified Unlading Approval (AQUA) lanes and Importer of Record identity theft monitoring, known as CTPAT Defender (see 1807190027).

The CTPAT portal itself will be a benefit in that "it will be a lot easier to manage your entire trade compliance dialog with us electronically," Schmelzinger said. Another benefit under development will be the ability for CTPAT members to submit requests for manifest confidentiality through the portal, she said. "That will live in the portal" and "you won't have to retype that thing every two years." CBP would consider "your annual notification and your annual review for trade compliance as that periodic check and request, and you would submit that electronically and there would be an interface between that and ACE." The Importer Trade Activity data will eventually move from the security side of the CTPAT portal to a "trade compliance" part of the portal, she said.

Industry shouldn't count on an approach to the Air Cargo Advance Screening requirements similar to the phased-in enforcement of Importer Security Filing, said Craig Clark, who oversees CBP's advanced data programs and cargo initiatives. While "it's too early" to talk specifics "because we haven't really developed what the compliance regime is going to look like," he said he doesn't "think you should expect that it will be the kind of rollout for enforcement that you saw with ISF." Most parties affected by ACAS are mostly aware of the issues involved, whereas ISF added a "new responsible party," he said.