U.S. Commercial Operations & Security Programs – An Overview of Progress  

(Remarks adapted from address by U.S. CBP officials to the trade community) ADVANCE INFORMATION – 10+2 The SAFE Port Act calls upon us – trade and government – to do more and work together even more closely. It mandates, for example, consultations with COAC the Commercial Operations Advisory Committee – on an extensive list of issues, programs and plans. This mandate requires COAC to establish an entirely new series of subcommittees designed to see the group rapidly establish this new structure at their recent meeting. Together, we need to meet the Act’s requirement for a range of reports and pilot projects over the next 12 months. And, COAC has demonstrated that they are ready to lead the private sector to deliver on the tight deadlines the law requires. CBP is ready to engage fully in this process and several discussions are already underway. One of these discussions is focusing on the SAFE Port Act mandate to collect more detailed information on international supply chains to better support our risk targeting processes. We have long recognized the need to go beyond the 2002 Trade Act data requirements for greater transparency into the supply chain – back to the point of stuffing. Providing a view of security across the entire supply chain is a basic requirement for C-TPAT membership. Better information means better risk management. And better risk management leads to better security and enhanced facilitation of legitimate trade. We now need to demonstrate to Congress – within a relatively short time – that we are adhering to their mandate. Our discussions with the trade over what additional data elements would improve our ability to assess the risk for terrorism stretch back over three years. The Trade Support Network on Supply Chain Security Committee has worked diligently on this problem during the past year and the result has been a data set we call “10+2.” This is shorthand for 10 additional information requirements and two reasons used routinely to track containers. COAC is now leading a discussion to help us refine the definitions of the 10 data elements and to provide advice on the best means of reporting the information to CBP. We expect to conclude this COAC discussion in February and move into the rule making process in the spring as well as provide an additional period for comments from the trade. And, I hope to start implementation of the new reporting requirements by the end of next summer. Like the Trade Act and many of the new security measures we have implemented over the past five years, 10+2 will be phased in. With these new reporting requirements I want to ensure that all the issues that impact your businesses are resolved before we go to full compliance mode on our long track record of successful implementations. I am confident that, together we can achieve this ambitious goal. And, the purpose of 10+2 is to improve our risk targeting, I want to assure you that improved information will generate facilitation benefits and help us release low risk cargo even faster.

ACE and ITDS Note: The ACE Secure Data Portal is a customized web-based system that connects CBP, the trade community and participating government agencies in one centralized, on-line access point. I want to turn to ACE where dramatic progress has been made with the ACE program since 9/11 when it moved from an IT design to a field deployed reality. As we continue to develop the system, it is becoming clear that ACE will generate a number of significant changes to the international trade process of the future. First, we will drastically reduce, or eliminate paper. We’ve already identified as many government forms as we can eliminate. The normal method of payment will be on a more periodic basis. This will result in real manpower and economic savings to CBP and to you. Second the trade community will use the ACE portal to exchange information with CBP to better manage their compliance activities. By the end of 2007, all trucks entering the U.S. on both borders will be full ACE participants and will be providing manifest information as required by the Trade Act. ACE is quickly becoming an integral part of business life and it will become the prime processing system CBP will use and we all need to prepare for those changes. We help to make sure your company, and everyone in the trade community is ready for it. And third, ACE will also provide the technology backbone for the International Trade Data System or ITDS. As you know, the SAFE Port Act mandates that all Federal agencies with import or export requirements will participate in ITDS. It will be the “single window” through which all information will be submitted to the federal government. Through ACE CBP will work with federal agencies – 29, so far –and the trade community to build an import/export process that will set new standards of efficiency and transaction speed. Last year’s adoption of the WCO Framework makes the single window into government’s standard set of trade data through ITDS even more promising. With 138 of its 169 members signed onto the Framework, the potential of achieving common standards to both sectors to facilitate global trade is unprecedented.

C-TPAT All our progress has depended on our partnerships – and one of the most important is C-TPAT. Perhaps the most unique program to result from our common reaction to 9/11, C-TPAT was designed to evolve with refined security criteria, three tiers of benefits for importers and more security specialists to conduct validations. C-TPAT’s more than 6,000 members account for 45 percent of imports into this country. Over the next few years, C-TPAT will evolve even further to respond to the widespread demands of participation. The SAFE Port Act authorizes C-TPAT and provides guidance on the program will evolve. In the future COAC too, is launching discussions over implementation of SAFE requirements in this area. We will also continue to pursue mutual recognition between C-TPAT and foreign business partnership programs under the auspices of the WCO Framework. Several countries are moving their programs towards higher standards and I would like to vigorously pursue the extension of partnerships with these countries as soon as possible.