**COAC MEETING NOTES 8-16-07**

Just found out we are taking the "official minutes" of the COAC. CBP is
only taking action items which will be forwarded within a week of COAC.
So, these minutes need to be completed and to Bruce by Aug 31

Minutes from last time were approved.

Tom Winkowski is now the Assist Commissioner of Office of Field
Operations, replacing Jay Ahern.

James Caverly, heads up the new Office of Infrastructure, focused on
protection of critical infrastructures of the nation.

**Post Incident Response Discussion:**

-   Government response is to relieve and provide support to those
    impacted.

    -   This response is in support of the State's efforts.

    -   National Response Framework will be issued shortly for responses
        and will be provided to COAC for review

    -   Want to provide better communication to the State with regards
        to the decisions that are being made

    -   There needs to be connectivity to what the State's decisions are
        -- so this agency will serve as a liaison to ensure people are
        directed to the right contacts for information

    -   The information that should be disseminated to the communities
        impacted will include what the Federal is responsible for and
        what the States are responsible for

Disaster Response:

How do I get my operations up and running?

What types of support serves are available?

What are the contracts in place that must be dealt with? Sea Carriers,
etc?

U.S., Canada and Mexico have agreed to implement joint protocols for
post-incident business resumption.

There was a document emailed to all COAC members this morning for review
dealing with Action Items and recommendations from the Vancouver
Tabletop Exercises.

There is another document that CBP is working on with the Coast Guard
for Post Incident Response.

There will be another tabletop exercise next week to test all modes of
transportation -- including ocean carriage.

Tony Barone:

Recommendation -- That there be a clear control and command structure
established and secondly, the principle of federalism. When a port goes
down, it is not a state issue -- it is a national issue, all states are
impacted.

It would be appropriate for COAC to review the CBP model as well.

Chris Koch:

Federalism and pre-emption are important in building the post incident
response. Chris stresses that CBP should be in charge. The current
strategy document is unclear on these points -- the key principle to
ensure that federal government can pre-empt local responses.

Jay Ahern:

The question of "who is in charge" is complicated and will be driven
individually based on the facts and issues involved.

James Caverly:

There is a huge coordination problem among the various authorities
involved. Need an orderly, efficient system.

Tony:

Please keep COAC involved in this process as we have the expertise in
these areas and can offer assistance.

Jeremy Luczkowski -- the document that is going forward for the
Secretary's review has to do with the response on the Northern Border

Commissioner said we have a right to know "who is in charge."

Jay Ahern:

We can have frameworks and protocols in place but again it will be based
on the type of incident and the facts. He also agrees we need to ensure
that there is adequate communication with the trade regarding the
frameworks.

Chris said we need to know what type of platform will be used to be
communicated to the trade.

Should be incident command centers that are placed around the country so
there should be one stop shopping as far as where to turn for
information.

Tony: said that our concern is not limited to the place of the incident
-- that focus misses the need to ensure quick resumption that impacts
numerous ports.

Commissioner said there was a real world problem that happened last week
-- where LAX's system went down and they figured out how to address the
delay and the concern as to how and why it happened.

Jeff Robertson, new commissioner for the Office of Public Affairs was
introduced.

Break

Security Clearances are almost completed. The Commissioner wants these
to be completed before the next COAC meeting.

**Secretary Chertoff's Comments:**

Security and trade -- is a balancing act. Biggest challenge however is
to continue the flow of trade of commerce. The international supply
chain is designed to be as seamless and fast as possible and is at odds
with monitoring, screening, etc.

Strategic Objectives:

Keeping dangerous cargo out of the US, including unsafe imports.
Approach is to take a layered approach to security to reduce threats and
risks but not to eliminate them.

Secure Freight Initiatives, C-TPAT and CSI -- all help reduce risk.
Common thread is to collect information as a substitute for the 100%
screening

Need greater visibility to container moves as well as to identify
mechanical effects such as a CSD to identify intrusion into a container.
Getting information earlier and more comprehensively is important.

10 + 2 NPRM is still under review at DHS. COAC's recommendations were
very helpful to design a NPRM

Will phase the reporting procedures in over time so as to limit the
impact on the flow of trade.

Want to pilot a program on a global basis for collecting data
world-wide. CBP has issued a solicitation for proposals.

Resumption of Trade: Overarching plan has been issued to try to
coordinate the appropriate agencies. Find a way to unify our response to
an incident, prioritize the flow of maritime traffic.

CSI -- scheduled to be up and running by Oct 1 in 58 ports which
represent the majority of trade.

ASP technology is also being implemented (next generation) to better
identify radioactive material.

Focus on risk management and security needs to be based on well informed
opinions -- all threats, all hazards, dealt with 24/7 comprehensively.

Tony Barone:

Brief report on strategic plan that COAC was able to address -- our
first comment is that there be a clear command structure and superseding
state and local authorities. Lack of clarity over who'd be in charge is
a critical issue. Additionally, we don't see a port incident as a state
issue -- this is clearly a federal issue and needs a federal response
and plan. We think further that CBP should be the leader in this effort.
We need to know what the federal plan is, where do we get the
information -- need this to build these into our continuity plans.

Secretary Chertoff: There is a process that unifies the federal effort
and sets up an Incident Command Center. Could be coordinated either by a
Senior CBP officer or the Coast Guard Commander at the port itself.
There are constitutional issues with the State -- we can lead the effort
around the ports -- but not with respect to the municipalities. The role
there would be more focused on coordination. There needs to be more
exercises to prepare and coordinate and to respond in a unified way.

Chris Koch: Thanked Chertoff for his comments on 10+2 and COAC's
efforts.

CSDs: we understand that there is a proposal being put together -- COAC
would like the opportunity to provide comments in advance of
finalization of the requirements.

GTX -- COAC has no idea what it is and how it would work. A lot of
sensitivities with regards to the commercial information itself.

Secretary Chertoff: GTX will be a voluntary program at first. The sooner
we have information earlier in the supply chain -- the better it is to
determine whether the shipment is legitimate. This can assist with
targeting and detection.

Lisa S: asked that we be given an opportunity to review GTX in advance
and to comment on it in advance of any RFQ. We'd like a briefing.

Curtis Spencer: The whole concern in GTX is with regards to the changes
in supply chain -- are the major changes needed for 10+2. We want to
make sure that 10+2 data is the basis of GTX effort but if many more
elements needed for data -- there's a concern.

Chertoff's response: there will be for a host of reasons, an increasing
demand for security due to concerns over safety. Intelligent
accumulation of information is preferred to a 100% physical inspection
-- need the alternative model to ensure the flow of trade. The
Government does not have an infinite amount of time here -- so long
delays in implementing things and in permitting long study would not be
prudent. He does want our input but at the same time, this project must
commence timely.

Action Item: ask for the GTX document and opportunity to provide input.

Commissioner said he will try to provide as much information as possible
on GTX.

Barry O'Brien pointed out the ITDS is already in existence and could be
used as the platform.

Tim Skud: Working on getting more of the information that is in the ACE
Data warehouse into the ITDS. Another area is working with WCO to
identify common international standards to process information. Because
it reduces costs for business to be able to use the same messaging
process anywhere in the world -- we should implement and accelerate the
WCO international standards in ITDS and ACE. This is in the conceptual
stage.

Sam Banks: With the Import Safety Workgroup -- each agency may
potentially come to the trade with new requirements -- so ITDS should be
the platform for the collection of data. Also it is moving slowly
because CBP does not really have the other agency's commitments to
participate. He suggests placing more heat on them.

Peggy R: When the Secretary talks about GTX he is speaking about a
private sector effort not a governmental one. Major point that
confidentiality issues will be a concern.

Commissioner Basham: The belief is that the private sector is the best
to provide the platform. The idea is for importers and exporters to
provide information into the system ONE time -- so no need to provide
additional information multiple times to multiple agencies and multiple
countries.

Mike Mullen: said he will put this on the Agenda for November.

Lauren Zuker: DHS is sensitive to protecting the sensitivity of data and
by moving forward on 10+2 is in no way a wasted effort. There are many
ways of providing various types of data that may or may not be useful
for targeting. GTX -- trying to identify the key data elements to
provide better targeting. GTX is the possibility of gathering additional
information to augment targeting efforts. DHS will consult with us to
the extent possible.

Chris: Concern about separate effort under GTX to help target -- but is
disconnected from the current targeting system.

Commissioner said he understands a briefing is needed so we better
understand what the concept is.

Curtis: Can we have a briefing before the funding and the RFP goes out.

Mike Mullen: said they will investigate what they can do internally and
that they will likely brief us in advance of both.

**C-TPAT and CSI --**

Lisa S: Report on effectiveness of the CSI

Curtis: C-TPAT:

Assembling a subcommittee on 3pls -- challenge in trying to define the
scope of what a 3pl is -- numerous types of entities could be a 3pl so
the committee is working on a definition. Secondly, the committee is
working on a better definition of benefits that we'd like. Only a few
Green Lane benefits we proposed were accepted by CBP. We are now working
on requesting additional benefits.

Bruce: Proposals to C-TPAT Members -- for additional benefits --
especially Tier III. Recommendation for opening C-TPAT to exporters so
that the process dovetails into the WCO SAFE Frameworks.

However, there is an ownership issue here -- Commerce owns the export
piece.

Bruce suggested agency coordination to achieve this.

Dan Baldwin explained part of the problem in giving trade benefits is
that there is no trade validation.

University of Virginia Report will be out soon to provide further
guidance.

**Supply Chain Best Practices** -- Sam Banks is putting team together to
act as a knowledgeable group and a resource for CBP to use. Within the
next 30 days -- meet to establish a baseline exchange. Set the baseline
and then set the key questions by and between the Trade and CBP. We hope
CBP will figure out how the can use these resources best to assist them.
Folks from Secure Freight Initiative should be in the session including
various other representatives that cut across various organizational
boundaries.

**Secure Freight Initiative:**

3 elements: Scanning overseas,

10+2

GTX

Report on Sec. Freight is due by April of 2008. Congress may want it to
be done by March 08. COAC is in the loop on the report.

Scanning: Significant challenges, technology, health and safety issues,
may not support 100%, identifying containers that are to be scanned,
i.e., 24 hour rule and sovereignty , and support of carriers and
terminal operators.

Second component: 10+2 is at DHS then OMB

GTX. Nuance on GTX is that (unlike 10+2) there are members of the trade
saying that GTX is very easy to do, on a voluntary basis, what is out
there. Lessons learned from that will help

Any thought to reciprocity? Are we going to scan the export containers
for WCO reasons, so that scanning is also done for exports? Well, we are
going to do the inbound before the outbound pilot.

Commissioner Basham agreed to have a full briefing of the COAC before
the next meeting Nov 07, and we should be receiving a document before
the next meeting of COAC Nov 07.

**ACE Program Status and E-Manifest:** Missed these comments of Lou
Samenfink

Jevon: Deployment over the weekend caused massive problems. Lou said it
was not a Deployment issue. The A1 deployment will be in a few weeks.
These will be done over the weekends. He said he will work harder on
communicating to the trade system errors.

**Office of International Trade:**

Dan Baldwin -- Brenda Smith is new Executive Director of Trade Policy
and Programs. Anne Maricich: Issues focused on this year -- trying to
identify trade facilitation opportunities. Used metrics to identify how
this could be done. There are some process improvements and policy
changes that could be changed. For example, textile area -- there is a
unique group of members that are in ISA that rarely had issues with
production requests, and if CBP detained the goods -- were released
quickly. The new policy that will be implemented is that there will be
no further detentions for wearing apparel ISA Members, as CBP has
alternatives that will be put in place. One of the other policy changes
that CBP wants to put out there -- working with EPA on labeling
requirements for off road vehicles. There was a 0 tolerance and
automatic seizure required for improper labeling. CBP is trying to ease
those requirements.

How do we use the Partnership programs to operate and fully enforce
trade?

Brad Shorser: The measures and the statistics did bear fruitful analysis
that resulted in changes in policies and to improve other processes that
will improve trade flow. Paperless was another area that OT has already
implemented for Type 1 Entries but still have a ways to go as well as
with regards to the RLF program. We would like it to be expanded, and
possibly for those importers that have good internal controls. Another
area we'd like to introduce and work on deals with Conditional Release,
where an entry has multiple BOL's on an entry and there's a container
designated on an exam. The rest of the containers can be moved
downstream -- BUT rarely are from a business standpoint because of a
concern of guaranteeing that the seal will not be broken. We'd like to
change this so that all other containers can be moved downstream without
ANY restrictions, including not keeping the seals in tact for container
that are not designated for exam.

**Import Safety Group**: Cathy Sauceda

The President set up a Working Group to look at import safety, the
issues, the problems, coordination with foreign governments and to come
up with recommendations. The principals represent 12 agencies. The
deliverable will be a report to the President -- probably will be
completed this fall. CBP wants to solicit the trade's input, especially
COAC's input with regards to the import process and the important issue
of safety. This is not about just China and this is not limited to food
safety. This is import safety from all countries, all commodities.

Tony Barone: There are multiple issues involved, such as counterfeit
products which are already illegal and there are methods to interdict
those. There are various questions that were posed in the Import Safety
Materials that we will address as the full COAC and will submit to Cathy
Sauceda. First meeting will be at 1:30 p.m. today to discuss this
further.

Bruce Leeds: We will work on this short term to provide trade input. IPR
Enforcement -- Commissioner Hallet and Commissioner Basham has asked us
to focus on this issue as well. After we complete our effort on Import
Safety we will begin work on this area.

Tony moved that we create a separate subcommittee on IPR and the motion
carried.

**Next meeting will be in D.C. just after the Trade Symposium, on
November 16^th^. Trade Symposium is in November -- the 14^th^ and
15^th^.**