**COAC Comments**

**On The**

**CBP Trade Strategy FY 2009 -- 2013**

1\. Overall Comment

> The Trade Strategy is a very good high-level strategic plan that forms
> a sound basis on which to build implementation plans that would
> contain specific actions with timelines. COAC appreciates the
> opportunity to comment on this document and to collaborate on the
> implementation plans that will execute this strategy. One issue of
> concern is that a new administration will be responsible shortly after
> the Trade Strategy is adopted. Has CBP taken this into account and the
> potential impact on the plan?

2\. COAC discussed that the strategy should strongly commit CBP to a
more central leadership or facilitative role with Participating
Government Agencies (PGAs). Specifically, the trade requests CBP to
forge a collaborative process with PGAS, especially import safety
related agencies, to work toward a common vision of interacting with the
importing community on targeting, advance data, ITDS single window, and
a common concept of operations for pre-entry, border exams and release,
and post-entry activities.

-   This effort would be analogous to the leadership demonstrated by CBP
    in convincing the WCO and a multitude of foreign governments to
    create and adopt the SAFE framework.

-   With the central role of CBP in ACE, ITDS, and staffing at ports of
    entry, CBP is positioned to sponsor a collaboration initiative in
    partnership with other Federal agencies. The trade community will
    support this effort politically and will provide trade expertise as
    needed.

-   In essence, the trade would like CBP to dedicate sufficient
    resources to achieve a single window for import data submissions and
    a single release by all agencies.

3\. COAC discussed that Account Management should be more prominently
featured in the Trade Strategy. The document should emphasize account
based risk management over data based risk management.

-   The strategy cites four goals and then five "areas" or "strategies"
    beginning with "Expert Trade Law Application". It is COAC's view
    that Account-Based Management should be added to this list.

-   Account Management is a critical component for CBP compliance
    enforcement efforts, coordination of CBP trade oversight,
    facilitating trade, IPR enforcement, ACE Modernization, etc. and
    should be a cross-cutting strategic methodology to achieve the four
    strategic goals.

    -   We suggest a small group under the coac trade facilitation
        committee be formed whose purpose would be to define the account
        management program of the future and the role of the account
        manager. The group would be comprised of importers, brokers and
        current account managers.

    -   

4\. COAC discussed that CBP should state in the document that CBP will
establish a process with the trade community to solicit, discuss,
mutually understand, identify, and set goals and metrics for trade
benefits.

-   One example that highlights the need for more interaction is on the
    top of page 12 of the Strategy that states "CBP must reduce the
    impact of enforcement actions on lawful importers at the border."
    This is good; however, from the trade community's perspective, they
    really would want CBP to focus on reducing the impact and burden on
    the 98% of trade not subject to enforcement actions. This could
    include streamlining post-entry corrections, etc.

    -   On page 4 of the document, CBP implies that government revenue
        collected in duty and fees will increase as the value of imports
        continues to increase. Due to tariff rates decreasing and the
        inception of new free trade agreements, this assumption may not
        hold true.

    -   

-   If CBP seriously wants industry to embrace the Importer
    Self-Assessment program, there needs to be an expanded dialogue on
    the benefits to participants

5\. COAC discussed that CBP should engage in a serious dialogue on the
"convergence of trade and security programs".

-   There are a number of dynamics underway that blur the distinction
    between trade and security programs for CBP and industry, for
    example:

    -   most of the 10+2 data elements for the Importer Security Filing
        are entry or commercial data

    -   foreign manufacturer verifications will now extend beyond C-TPAT
        and encompass product safety -- is this commercial or security?

    -   C-TPAT is for security but AEO is for both trade compliance and
        security

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-   Advance data submitted by many companies all emanate from the same
    source -- the company's supply chain information system \-- whether
    the data is for trade or security. It is likely that CBP targeting
    systems also do not distinguish between trade and security data and
    instead simultaneously perform security and trade compliance checks
    on any data submitted by industry.

6.  COAC discussed that CBP should consider changing the current penalty
    administration as one means to giving the importing community the
    incentive to participate in self governance programs.

7.  Where is the trade strategy for exports?

The plan is very clear on Import Strategic initiatives, but does not

mention any export initiatives, whether they are trade or security
related.

The plan should identify the current and planned programs with other
U.S.

government agencies and its plans for effective export control. The
Trade

strategy should also highlight CBP\'s involvement with other WCO members
and

its impact on Export trade.

8.  Commitment for resources:

> COAC discussed the fact that missing from the document is any
> discussion of CBP resources and technology developments that will be
> required to support and expedient clearance of cargo, as volume
> increases dramatically over the term of the 5 Year Strategy. CBP will
> not be able to maintain or improve the level of service without
> increase in personnel or the use of new technology. The document
> should clearly state that it will be a necessity for budget allocation
> of sufficient resources covering staffing numbers and training,
> inorder for the goals and objectives to be met.

9.  Questions:

> \* Given the fact that the Multi-fiber arrangement was phased out in
> 2005, China safeguards are set to expire on December 31, 2008, and
> barring the implementation of the product specific safeguard provision
> prior to 2013, why is it necessary to specify textiles over anyother
> product type as a compliance priority?
>
> \* The topic of business resumption in the event of a terrorist
> incident at a port was not specifically mentioned. Is this issue
> covered by one of the 4 goals or applicable objectives?

\* In a meeting with the NCBFAA Customs Committee in Washington, Angela
Downey and Dan Baldwin agreed to change the \'Broker Self Assessment\'
program to

\'Broker Compliance Management\' and this should be changed in the Trade

Strategy document. (see page 24)

> \* COAC discussed the fact that the document did not include as a goal
> or objective the issue involving standardizing CBP field operations
> practices when implementing policy. Should this issue be part of the 5
> year trade strategy?