Performance and 

Accountability Report

Fiscal Year 2011

U.S. Customs and Border Protection • Annual Financial Report i

This is the U.S. Customs and Border Protection (CBP) Fiscal Year 2011 Performance and Accountability Report 

(PAR). The PAR is a comprehensive report that combines CBP’s Annual Performance Report with its audited 

financial statements, assurances on internal control, accountability reporting and agency assessments. CBP’s PAR 

provides program, financial, and performance information that enables Congress and the public to assess the performance of the agency as it relates to the CBP mission.

CBP is America’s frontline border agency. We guard the boundaries of freedom and stand between the good citizens of our Nation and those who want to do us harm. The CBP PAR discusses the agency’s strategic goals and 

objectives and provides a comparison of agency performance targets to actual performance results. The CBP PAR 

satisfies the reporting requirements of the Reports Consolidation Act of 2000 (Pub. L. No. 106-531), Government 

Performance and Results Act (Public Law No. 103-62), Chief Financial Officers Act of 1990 (Public Law No. 101-

576), Office of Management and Budget (OMB) Circular No. A-136, Financial Reporting Requirement, dated October 

27, 2011, and other financial management statutes and reports.

The CBP PAR provides a summary of the agency’s major mission programs, including strategies. Additional information related to the specific programs, initiatives, tools and resources used to achieve agency objectives can be 

found in the body of the Department of Homeland Security (DHS) Congressional Budget Justification for the 

President’s Budget, which details information by DHS component.

About This Report
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Table of Contents 1

Commissioner’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Core Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Fiscal Year 2011 Statistical Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Drug Seizure Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Major Mission Programs and Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Looking Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Headquarters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Component Organizations and Field Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Performance Goals and Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Performance Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Fiscal Year 2011 Performance by Mission Set . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Management Assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Federal Manager’s Financial Integrity Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

DHS Financial Accountability Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Federal Financial Management Improvement Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Federal Information Security Management Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Systems and Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Management Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Financial Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Overview of the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Limitations of the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Performance Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Performance Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Individual Performance Measure Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Financial Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Message from the Chief Financial Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

Management’s Response to the Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160

Other Accompanying Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

Revenue Gap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

CBP Collections by Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

CBP Collections by Major Processing Port Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

Summary of Financial Statement Audit and Management Assurances . . . . . . . . . . . . . . . . . . . 172

Improper Payments Elimination and Recovery Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

Office of Inspector General (OIG) Report on Major Management Challenges . . . . . . . . . . . . . . . . . . 177

Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

Table of Contents
2 U.S. Customs and Border Protection • Performance and Accountability Report

I am pleased to present the Fiscal Year (FY) 2011 Performance and Accountability 

Report (PAR) for U.S. Customs and Border Protection (CBP).

CBP’s priority mission is to keep terrorists and weapons of terror from entering 

the United States. As the Nation’s border agency whose personnel are stationed at 

and between our Nation’s ports of entry, CBP is responsible for managing, securing, and controlling our borders. In FY 2011, the men and women of CBP made 

tremendous progress in securing the border and facilitating legitimate trade and 

travel through targeted operations, enhanced partnerships and unprecedented 

deployment of personnel, technology, and infrastructure along the border.

CBP’s accomplishments have made important contributions to our Nation’s homeland security and economic 

vitality by protecting the United States and the American people from the entry of dangerous goods and people. 

Through the use of technology, personnel, and resources, CBP has made significant progress in border security 

efforts, including an historic decline in apprehensions. CBP also increased the number of Border Patrol agents to 

21,444, which is an increase of 886 agents since FY 2010.

In addition, CBP employed 20,500 CBP officers in FY 2011 with additional officers expected to be on board by the 

end of the calendar year. Technology assets, including mobile surveillance units, thermal-imaging systems, and 

large-and-small scale non-intrusive inspection equipment have improved the targeting of high-risk travelers and 

cargo, thus reducing traffic time.

CBP also seized a record amount of drugs at and beyond our borders. The Unmanned Aircraft System program 

contributed to the amount of narcotics seized and the apprehension of individuals involved in illicit activities. 

Providing security along the northern, southern, and coastal borders requires integration with our international, 

Federal, state, local, and tribal partners in order to leverage and focus joint resources. In FY 2011, CBP increased 

its collaboration with Federal, state, local, tribal, and international partners to combat individuals and criminal 

organizations that pose a threat to communities on both sides of the border.

As a result of the FY 2011 Financial Statement Audit, CBP received an unqualified opinion on its full set of financial 

statements. This outstanding accomplishment demonstrates CBP’s discipline and accountability in the execution 

of its fiscal responsibilities as a steward of CBP programs and reflects six years of an unqualified opinion for CBP.

The CBP FY 2011 PAR includes financial and performance information that is reliable and complete. PAR addresses 

CBP’s compliance with financial management requirements and identifies some areas for improvement.

CBP evaluated our management controls and financial management systems in compliance with the Federal 

Managers’ Financial Integrity Act of 1982 and our internal controls over financial reporting as required by the 

Department of Homeland Security Financial Accountability Act.

Commissioner’s Message
Commissioner’s Message 3

As a result of CBP’s self-assessment, one material weakness was identified for FY 2011, two instances of nonconformance, and three deficiencies that are carryovers from previous years.

While current CBP financial management systems do not substantially comply with Federal financial management 

systems requirements and the U.S. Government Standards General Ledger at the transaction level, CBP is modernizing its financial systems.

KPMG LLP conducted an independent audit of CBP’s FY 2011 Financial Statement. CBP has reduced its material 

weaknesses since FY 2009, including those cited in the Financial Section of this report, which support those identified through CBP’s self-assertion process.

CBP will work to improve deficiencies identified in PAR and will put in place timetables for corrective action 

to ensure future compliance. We remain committed each year to share information on our financial and 

program performance.

I am proud to be a CBP employee, working alongside the men and women who make up this organization. CBP 

employees are dedicated to the mission of the agency and to the greater good of helping to secure our homeland 

and its citizens. Our goal remains to provide timely, reliable, and useful financial information to Congress and the 

American public and to enable managers across CBP to make sound business decisions that further the agency’s 

critical mission.

Alan D. Bersin, Commissioner

U.S. Customs and Border Protection

Commissioner’s Message
4 U.S. Customs and Border Protection • Performance and Accountability Report

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Management’s 

Discussion and 

Analysis
6 U.S. Customs and Border Protection • Performance and Accountability Report

Mission

CBP is the frontline border security agency within DHS charged with the priority mission of preventing terrorists and terrorist weapons from entering the United States, while also facilitating the flow of legitimate trade and 

travel. CBP prevents narcotics, agricultural pests, and smuggled goods from entering the country and also identifies 

and arrests individuals with outstanding criminal warrants. CBP leverages its enforcement and intelligence-gathering capabilities to execute the mission of border and airspace security. As of the end of Fiscal Year 2011, 59,820 

CBP employees manage, control, and protect the Nation’s borders at, and between, the official ports of entry. CBP 

is responsible for protecting more than 5,000 miles of border with Canada, 1,900 miles of border with Mexico, 

and 95,000 miles of shoreline. CBP’s mission is vitally important to the protection of the American people and the 

national economy.

Core Values

Vigilance is how we ensure the safety of all Americans. We are continuously watchful and alert to deter, detect, and 

prevent threats to our Nation. We demonstrate courage and valor in the protection of our Nation.

Service to Country is embodied in the work we do. We are dedicated to defending and upholding the Constitution 

and the laws of the United States. The American people have entrusted us to protect the homeland and 

defend liberty.

Integrity is our cornerstone. We are guided by the highest ethical and moral principles. Our actions bring honor to 

ourselves, our agency, and our country.

Fiscal Year 2011 Statistical Highlights

•	 Ports of entry: 329

•	 Pre-clearance locations: 15

•	 Border Patrol sectors: 20

•	 Air units: 46 (1 Training location and 3 Radar/Communications locations)

•	 Marine units: 71 (2 Training locations and 1 Maintenance location)

•	 Trade entries processed: 29.5 million

•	 Total revenue collected: $37.2 billion (includes custodial and entity revenue)

•	 Illegal narcotics seized: 3.1 million pounds (represents narcotics held by CBP until disposal or destruction)

Overview of CBP
7

•	 Illegal alien apprehensions between the ports of entry: 340,252

•	 Inadmissible aliens interdicted at the ports of entry: 211,483

•	 Pedestrians and passengers processed: 340 million

•	 Conveyances processed: over 104 million

•	 Aircraft passengers processed: over 94 million

•	 Prohibited plant and animal materials seized at the ports of 

entry: 1,682,881

•	 Agricultural plant and pest intercepted at the ports of entry: 177,299

Drug Seizure Statistics

Note: The following amounts represent total CBP seizures, including 

amounts transferred to Other Government Agencies (OGA) for disposition.

•	 Number of pounds of cocaine seized: 224,727

•	 Number of pounds of heroin seized: 4,176

•	 Number of pounds of marijuana seized: 4,567,812

•	 Number of pounds of methamphetamine seized: 11,064

Major Mission Programs and Strategies

As America’s frontline border security agency, CBP has established programs and strategies designed to enhance 

border security and other mission critical functions by operating as a fully integrated information-driven agency. 

CBP strives to maximize partnerships on the home front and abroad by promoting an effective management infrastructure that fosters the highest standards of integrity. CBP has built a layered strategy using risk-based approaches 

and performance management techniques that maximize CBP’s strengths.

The American Recovery and Reinvestment Act of 2009

During Fiscal Year (FY) 2009, CBP received a supplemental appropriation under the American Recovery and 

Reinvestment Act (ARRA) of 2009, Public Law 111-5. ARRA made $680 million available to CBP for infrastructure 

investment. ARRA allocated $100 million for the procurement and deployment of non-intrusive inspection (NII) 

systems; $60 million for the upgrade of tactical communications equipment and radios; $100 million for the 

expedited development and deployment of border security technology on the southwest border ($50 million of 

Management’s Discussion and Analysis

Overview of CBP

A CBP officer seizes illegal 

substances concealed in a vehicle.
8 U.S. Customs and Border Protection • Performance and Accountability Report

which was allocated for additional Tactical Communication enhancements); and $420 million for the planning, 

management, design, alteration and construction of CBP-owned border Land Ports of Entry (LPOE).

Land Ports of Entry

CBP identified and prioritized repairs, enhancements and replacement projects needed to modernize northern and 

southern border ports to sustain evolving operational requirements. Current facilities were designed to meet earlier mission requirements and have site configurations that restrict the flow of traffic, or pose constraints that limit 

the ability to deploy the optimal complement of inspection technology. CBP received $420 million in ARRA funds 

to address modernization needs for CBP’s LPOEs. These funds are targeted to replace 31 of the 41 LPOEs currently 

in CBP’s inventory. CBP’s strategy focuses on increasing the quality of facility performance and facility-related services. The ultimate goal is to improve these critical assets to better meet CBP’s mission to secure the Nation’s border 

while facilitating legitimate travel and trade.

Non-Intrusive Inspection

The NII and Radiation Detection Technology program is a critically important component of the CBP layered 

enforcement strategy. NII technology allows CBP to scan a larger portion of the stream of inbound traffic for the 

presence of contraband in less time while facilitating legitimate trade and travel. These tools provide CBP with a significant capability to detect and interdict terrorist weapons and other contraband at and in between our Ports 

of Entry (POE). At the end of FY 2011, CBP had a total 

of 299 large-scale NII imaging systems deployed to our 

Nation’s air, land, and seaports of entry and to Border 

Patrol checkpoints. These systems include large-scale 

X-ray and Gamma-ray imaging systems, as well as a variety of small-scale, portable, and hand-held technologies. 

CBP has moved quickly to deploy nuclear and radiological detection equipment. Through the end of FY 2011, 

CBP has acquired and deployed 1,465 Radiation Portal 

Monitors (RPM), 2,437 Radiation Isotope Identification 

Devices (RIID) and 24,418 Personal Radiation Detectors 

(PRD) nationwide.

CBP officers employ risk analysis, targeting information and/or officer discretion to scan conveyances for the presence of contraband with NII equipment. If an anomaly is discovered, a more intensive inspection is conducted. 

Without NII systems, cargo would require a more time-consuming manual examination that could negatively 

impact the expedited flow of commerce (e.g., NII Technology can image a conveyance in approximately 3 minutes, 

Overview of CBP

CBP uses mobile VACIS to inspect vehicle contents at 

the POEs.
9

while a manual inspection can average over several hours). This equipment is effective at identifying a variety of 

illegal activity and contraband, including human smuggling, narcotics, weapons, and explosives.

CBP uses RPMs to scan cargo containers for radioactive materials as they pass through vehicle-processing lanes at 

land border ports, as they are off-loaded from ships at seaports, and at select airports and all express consignment/

mail courier facilities. Officers also use PRDs and RIIDs to scan for and identify signs of radioactive materials as 

they perform inspections on smaller vehicles, private aircraft, and shipments. Special high-tech tools such as density meters and fiber-optic scopes allow officers to peer inside suspicious containers. Finally, if necessary, containers are unloaded and opened for a more intensive manual inspection.

National Targeting Centers

National Targeting Center – Passenger

The National Targeting Center – Passenger (NTC-P) was created to be the single point of reference for CBP antiterrorism efforts. NTC-P plays a vital role in the identification of individuals who pose a national security concern 

at POEs and Border Patrol checkpoints. While the vast majority of travelers and goods are legitimate, NTC-P is 

designed to carefully identify and examine those who may be involved in terrorism or its attendant concerns (e.g. 

money laundering, facilitation of unlawful travel, etc). The facility is staffed with both permanent and Temporary 

Duty (TDY) analysts, as well as several inter-agency liaisons to provide 24 hours, 7 days a week (24x7) tactical 

targeting and analytical research support for CBP anti-terrorism efforts. NTC-P uses numerous automated enforcement data processing systems which are focused on detecting and preventing terrorist access to the United States 

including the Automated Targeting System-Passenger (ATS-P) and the Targeting Framework. These systems allow 

NTC-P to screen passenger manifests and related information prior to arrival in the United States.

The mission outcomes for pre-departure targeting are to maximize the effectiveness of advanced technology, 

intelligence information, domestic and international partnerships, and well-trained human resources to effectively screen, review, identify and prioritize passengers and cargo across all international modes of transportation, 

inbound and outbound. This includes the following:

•	 ATS-Passenger Pre-Departure targeting;

•	 U.S. visa re-vetting;

•	 Outbound targeting;

•	 Supporting Immigration Advisory Program (IAP) teams;

•	 Enhancing ATS-P entity resolution and infrastructure capabilities and improving quality of commercial 

carrier-provided Passenger Name Record (PNR) data;

•	 Terrorist Watch list improvements in collaboration with DHS/National Counterterrorism Center (NCTC);

Management’s Discussion and Analysis

Overview of CBP
10 U.S. Customs and Border Protection • Performance and Accountability Report

•	 Coordinating with the Department of State (DOS) and Immigration and Customs Enforcement (ICE) to automate vetting of U.S. non-immigrant visa applications before submission to Consular officers overseas; and,

•	 Implementing the National Targeting Strategy;

» Create a unified NTC - establish a joint NTC facility;

» Expand all modes pre-departure targeting;

» Strengthen Container Security Initiative (CSI) targeting; and

» Strengthen Agriculture Bio Terrorism (Ag-Bio) attack resources targeting.

Additionally, NTC-P conducts liaison work with the Centers for Disease Control, Central Intelligence Agency, 

Immigration Customs Enforcement (ICE), Federal Bureau of Investigation, Transportation Security Administration’s 

(TSA) Office of Intelligence, Federal Air Marshals, DOS, United States Coast Guard (USCG), and Citizenship and 

Immigration Services’ Fraud Detection and National Security unit. CBP and TSA have established a joint Targeting 

Workgroup to leverage CBP targeting capabilities with TSA authorities to ensure that high-risk passengers are 

screened overseas prior to boarding a conveyance bound for the United States.

National Targeting Center - Cargo

The National Targeting Center - Cargo (NTC-C) is a critical part of the CBP layered enforcement strategy. NTC-C 

supports CBP cargo-related activities by proactively targeting and coordinating examinations of high-risk cargo 

in all modes of transportation; provides high-quality research to the CSI, Secure Freight Initiative (SFI), domestic analytical units, and OGAs; and implements new proactive methodologies. NTC-C staff is comprised of CBP 

officers, import specialists, agriculture specialists, program managers, and CBP laboratories and scientific services 

scientists. NTC-C liaison staff represents the Food and Drug Administration, Department of Agriculture (USDA), 

Department of Commerce, ICE, and the Drug Enforcement Administration.

Key functions of the NTC-C are to identify companies and cargo linked to identified terrorists and criminals, 

create Memoranda of Information Received, The Enforcement Communication System (TECS) records, Automated 

Targeting System (ATS) user-defined rules, ATS notes, and Terrorist Screening Data Base (TSDB) nominations. 

NTC-C conducts user-defined queries for Weapons of Mass Destruction (WMD), Weapons of Mass Effect (WME), 

agro-terrorism, and bio-terrorism threats. NTC-C identifies shipments linked to terrorism, narcotics, and tradebased money laundering. Analysts conduct research on seized or detained documents from countries of interest 

relating to terrorism, organized crime, child endangerment, Intellectual Property Rights (IPR), and human smuggling to develop additional targets and make enforcement referrals to ICE.

NTC-C enhances remote targeting operations in support of the CSI, supports and coordinates the International 

Container Security (ICS) component of SFI, and supports domestic and CSI/SFI port targeting. CSI and SFI operations, housed at NTC-C, function as stand-alone operations with staffing and management structures within 

NTC-C, providing additional support staffing as workload demands increase.

Overview of CBP
11

In FY 2011, in response to the unsuccessful attempt to ship explosives to the United States from Yemen, NTC-C 

initiated the Air Cargo Advance Screening (ACAS) pilot program. The ACAS operation is staffed with both CBP 

and TSA targeting analysts who jointly target and mitigate air cargo identified as high risk before allowing it to 

be loaded onto an aircraft. Pre-departure targeting allows CBP to push U.S. borders outward by keeping high risk 

cargo off international conveyances destined to the United States. Modeling the Importer Security Filing in the air 

environment, ACAS enhances air cargo security by obtaining air manifests in advance from the North African and 

Middle Eastern regions, thereby increasing the availability and volume of data on air cargo received. The ACAS 

pilot program began on December 13, 2010 with electronic transmissions of key shipment data from the first ACAS 

air carrier, UPS. Federal Express began transmitting advance shipment data on February 24, 2011, DHL in March 

2011, and TNT in May 2011. As the ACAS pilot program expands to include all sectors of the air cargo industry, CBP 

and TSA will continue to analyze the data collected and refine the pilot as needed. The results of the pilot program 

will guide future policy and operational approaches CBP and TSA will take to enhance the security of air cargo.

In FY 2011, NTC-C significantly expanded outbound targeting operations. In support of the DHS mandate to 

increase southbound validations of weapon shipments to Mexico, NTC-C is aggressively targeting outbound 

and in-transit shipments to Mexico. NTC-C coordinates with CBP ports to conduct examinations and with the 

CBP Mexico attaché to verify the legitimacy of the shipment and the anticipated arrival of the shipment by the 

Government of Mexico (GOM). NTC-C also reviews outbound and in-transit cargo destined to other high-risk 

countries, including shipments containing controlled chemicals, weapons, and dual-use equipment used in the 

production of WMD/WMEs.

NTC-C also has significantly expanded narcotics and precursor targeting. NTC-C identifies drug trends, conducts 

tactical post seizure analysis, and disseminates intelligence products to CBP, DHS, and OGAs. In addition to targeting for heroin, cocaine, and marijuana, the NTC-C narcotics unit also has nationwide responsibility for targeting 

precursor chemicals used for the production of methamphetamines, ecstasy, and other dangerous drugs. NTC-C is 

aggressively targeting shipments originating in or transiting Mexico for narcotics and precursor chemicals utilizing risk management principles.

In FY 2011, the NTC-C Agricultural/Biological Terrorism Countermeasures operation continued to increase efforts 

to identify and target shipments and subjects that pose potentially significant risks. NTC-C Agriculture Program 

Trade Liaisons staff collaborate with the Defense Intelligence Agency, USDA, and OGAs utilizing the Agricultural 

Resource Atlas (AgRA) data to identify entities who work with or store biological materials. Law enforcement, 

government, and commercial databases are used to expand upon the AgRA data to target entities with derogatory 

information that have the capability and knowledge to utilize biological materials for nefarious purposes.

Container Security Initiative

Maritime containerized shipping is a critical component of global trade because most of the world’s manufactured 

goods are transported in maritime cargo containers. In the United States, almost half of incoming trade (by value) 

Management’s Discussion and Analysis

Overview of CBP
12 U.S. Customs and Border Protection • Performance and Accountability Report

arrives by containers onboard ships. In FY 2011, more than 11.5 million cargo containers arrived on ships and 

were off-loaded at U.S. seaports.

Through the Container Security Initiative (CSI), sea cargo containers that pose a risk for terrorism are identified 

and examined at foreign ports before they are shipped to the United States. CBP receives the bill of lading and 

manifest data on sea containers 24 hours before the containers are loaded on vessels destined for the United States. 

Through partnerships with foreign governments, CSI deploys teams of CBP officials to work with their host nation 

counterparts to examine containers that pose a terrorism risk. CSI extends the U.S. zone of security outward so 

that America’s borders are the last line of defense, not the first.

In FY 2011, CBP officers conducted operations in 58 CSI ports overseas. During the year, CSI continued to transition CSI TDY personnel to permanent status and place resources at NTC-C to reduce the number of CBP officers deployed. CSI will continue to evaluate and adjust personnel levels at several CSI ports to achieve desired 

staffing levels.

The CBP Commissioner’s intent for the CSI program in the next two fiscal years includes:

•	 Becoming a hybrid of different operational models based upon individual ports and host governments;

•	 Evaluating deployments and foreign footprints and aligning staffing based upon different operational models;

•	 Expanding remote targeting and central hubs in certain countries based upon the host country government’s 

willingness to share information and transmit images; and

•	 Evaluate expanding the role of CSI personnel to promote and/or participate in other CBP programs or initiatives and operate under the “county team.”

Trusted Trader Program

Customs-Trade Partnership Against Terrorism (C-TPAT) focuses on strengthening the supply chain security as it is 

an important layer in CBP’s cargo enforcement strategy. C-TPAT asks its member partners to ensure the integrity 

of their security practices and communicate and verify the security guidelines of their business partners within 

the supply chain. 

C-TPAT requires trade community participants to document and validate their supply chain security procedures in 

relation to the program’s criteria. C-TPAT Supply Chain Security Specialists and C-TPAT participants jointly conduct 

validations of the supply chain security procedures. The validation process is essential to verifying the company’s 

commitment to C-TPAT. As of September 30, 2011, C-TPAT has completed the validation of 2,863 companies.

The key outcome for expanding the trusted trader program (C-TPAT) includes the following:

•	 Identifying low-risk shipments (risk segmentation) to increase security and facilitate the lawful movement 

of goods;

Overview of CBP
13

•	 Implementing TSA and CBP initial strategy for a Joint Trusted Shipper Program for inbound international 

air cargo;

•	 Strategically increasing the number of C-TPAT participants over 5-7 years without compromising 

security standards;

•	 Improving efficiency and reducing redundancy with OGAs through information sharing and foreign 

validation activities;

•	 Strengthening scrutiny of future and current members; and,

•	 Linking various international industry partnership programs through Mutual Recognition.

Trusted Traveler Program

CBP’s Trusted Traveler Programs include: NEXUS (a joint venture between Canadian and U.S. authorities); the 

Secure Electronic Network for Travelers Rapid Inspection (SENTRI); the Free and Secure Trade program (FAST); 

and Global Entry that use a common automated system to register program enrollees and perform automated 

identification and validation.

NEXUS and SENTRI are land border management processes that provide expedited CBP processing for preapproved, low-risk travelers. In addition, NEXUS offers expedited CBP processing in select Canadian pre-clearance 

airports. Applicants must voluntarily undergo a thorough biographical background check against criminal, law 

enforcement, customs, immigration, and terrorist indices. In addition, a personal interview with a CBP officer is 

required. Once an applicant is approved, they are issued a Radio Frequency Identification (RFID) card that will 

identify their record and status in the CBP database upon arrival at the U.S. POE. This allows users to have access to 

specific, dedicated primary lanes for processing into the United States. For NEXUS participants in the pre-clearance 

airports, the member’s iris is scanned allowing users to have access to the self-service kiosks.

The FAST commercial driver program is the result of the 

United States, Canada and Mexico Border Partnership 

Action Plan. The FAST program provides expedited 

processing of participants’ qualifying merchandise in 

designated traffic lanes at select border sites. These designated FAST lanes allow FAST qualified shipments a 

nearly unencumbered approach up to and through the 

commercial facility.

Global Entry (GE), CBP’s newest trusted traveler program in the airport environment, was announced as a 

pilot program in June 2008. The program is now available at the 20 Model Ports and pre-clearance locations 

Management’s Discussion and Analysis

Overview of CBP

A commercial driver participating in the FAST program.
14 U.S. Customs and Border Protection • Performance and Accountability Report

in Canada, those airports with the highest volume of visitor traffic. CBP is completing the rulemaking process to 

make GE a permanent program.

Currently, there are more than 1,134,090 members enrolled in the SENTRI, NEXUS, FAST, and GE programs. 

NEXUS, SENTRI and GE are currently being integrated. As part of this integration, United States Citizen & License 

Plate Reader SENTRI members and all NEXUS members have been extended GE benefits. This allows these other 

program members to utilize the GE kiosks and participate in the GE program.

As of July 12, 2011, new GE members are issued an RFID enabled GE card, which allows members to use the 

inbound NEXUS and SENTRI lanes at the land borders. For pre-existing GE members, a card can be requested 

through the members’ Global Online Enrollment System account and by paying a $15 card issuance fee.

CBP and the United Kingdom (UK) have signed a joint statement stating the intention to develop a reciprocal 

trusted traveler arrangement. A pilot program is in a pre-launch phase. The Federal Register Notice (FRN) is 

also pending. CBP is working with the German Federal Police, under the guidance of the Federal Ministry of the 

Interior, to develop a trusted traveler arrangement. A pre-test pilot is under development, which will use secure 

emails to transmit applicant data for vetting and pass/fail messages.

CBP also continues to work with the Korean Government to develop a trusted traveler arrangement. The Korean 

Immigration Service is developing the technical requirements for them to support a joint program.

Admissibility Review Office

CBP’s Admissibility Review Office (ARO) provides institutional knowledge and a consistent decision-making 

approach about admissibility and the exercise of discretion for inadmissible aliens under the Immigration and 

Nationality Act (INA). The ARO works extensively with the DOS and other agencies to determine whether inadmissible aliens can legally travel as non-immigrants with waivers. Each case requires an assessment of the alien’s 

reason(s) for travel balanced with the seriousness of his/her ineligibility, weighed against any benefit or potential 

risk of harm to society if CBP admits the alien.

The ARO currently processes and adjudicates all waivers of inadmissibility that DOS consular officers recommend 

worldwide. The ARO decides all high profile “seat of government” non-immigrant waivers. It also processes and 

adjudicates all waiver applications submitted directly to CBP by eligible individual international travelers.

Fraudulent Document Analysis Unit

The Fraudulent Document Analysis Unit (FDAU) was established to act as a central location for the collection 

and analysis of fraudulent travel documents seized by CBP officers nationwide. The mission of the FDAU is to 

remove fraudulent travel documents from circulation and prevent the use of these documents by mala fide travelers attempting to enter the United States. Since its inception, the FDAU has received over 230,000 fraudulent 

Overview of CBP
15

documents. The FDAU receives documents that are counterfeit, altered, presented by impostors, or otherwise 

obtained by fraud or intended for fraudulent use. Documents presented by imposters make up the vast majority of 

the fraudulent documents received by the FDAU.

The FDAU manages the CBP Fraud Prevention Program (FPP). The goal of the FPP is to increase fraudulent document interceptions by expanding access to standardized training, high-quality document examination equipment, 

and current information on fraudulent document use and fraud trends. Two hundred and seven CBP officers have 

been designated as Fraud Prevention Officers (FPO) in 146 locations and have been tasked with sharing information regarding document fraud and fraud trends, creating reports on fraudulent document use, conducting document examination training, and working closely with headquarters on matters related to document examination 

and document fraud.

The FDAU also manages the Carrier Liaison Program (CLP). The mission of CLP is to enhance border security by 

increasing commercial carrier effectiveness in identifying improperly documented passengers destined for the 

United States. CLP uses interactive training, which allows participants to engage in hands-on instruction in fraudulent document identification, passenger assessment, impostor identification, and travel document verification. The 

CLP team has developed innovative training products, including a sample travel document that allows participants 

to examine dozens of common security features. Since its inception, the CLP has developed standardized training 

material for the carrier industry and has developed a Vessel Inspection Guide for the seaport industry.

CBP has partnered with Dutch law enforcement authorities regarding Electronic Documentation and Information 

System in Investigation Networks with Information of Travel Documents (Edison-TD). Edison-TD is a stand-alone 

global database used for the verification of travel and identity documents. The FDAU is the U.S. representative on 

the Edison-TD steering committee and is responsible for inputting of documentation information.

Advance Passenger Information System

The Advance Passenger Information System (APIS) is the single most critical element in CBP’s ability to identify 

dangerous individuals entering or departing the United States. Through this system, CBP receives biographical and 

travel document information on passengers and crew arriving in and departing from the United States by air, sea, 

and in some cases, land (from commercial bus and rail operators).

APIS data is received in advance of a traveler boarding the intended aircraft (both commercial and private) or 

departing on a commercial vessel, allowing CBP to screen all travelers against government watch lists and provide 

a screening response to commercial air carriers and private aircraft operators. CBP receives advance information 

on passengers and crew that is also sufficient for automated basic law enforcement queries that look for matches 

with multi-agency law enforcement alerts, immigrant visas, and historical databases. The APIS process has also 

been modified to incorporate Electronic System for Travel Authorization (ESTA) screening to allow carriers to use 

the existing APIS processes to meet new ESTA requirements.

Management’s Discussion and Analysis

Overview of CBP
16 U.S. Customs and Border Protection • Performance and Accountability Report

Immigration Advisory Program

The Immigration Advisory Program (lAP) is a component of CBP’s layered border strategy to prevent terrorists, 

high-risk and improperly-documented travelers from boarding U.S.-bound commercial flights. The goals of lAP 

are to:

•	 Enhance border and air travel security through the pre-flight identification and denied boarding of high-risk 

passengers destined to the United States;

•	 Disrupt alien smuggling and human trafficking air routes;

•	 Combat the proliferation of fraudulent travel documents used by terrorists and alien smuggling 

organizations; and,

•	 Prevent improperly documented passengers from traveling to the United States.

lAP officers serve as on-site experts in U.S. entry requirements, provide document training to carriers and use 

advance targeting and pre-departure passenger assessments to identify potentially high risk passengers without 

delaying, canceling, or diverting flights destined to the United States.

In FY 2011, there have been 2,889 “No Board” recommendations with an estimated CBP cost savings of $4,353,723. 

In May 2011, an MOU was signed with Japan to add IAP at Tokyo-Haneda airport. An IAP mobile team was 

deployed to Santo Domingo, Dominican Republic in August 2011. In September 2011, the Joint Security Program 

for Travelers was initiated at Panama, Tocumen International Airport and an IAP mobile team was deployed 

to Honduras.

National Agriculture Release Program

The National Agriculture Release Program (NARP) was developed by the USDA Animal and Plant Health Inspection 

Service (APHIS), Plant Protection and Quarantine (PPQ), in cooperation with CBP to expand the long-existing 

southern border cargo release program for implementation at a national level. This program facilitates the importation from several countries of regulated agricultural products that present very low pest risk and are imported in 

high volume. The commodities are subject to a reduced rate of inspection based on USDA risk analysis. USDA APHIS 

PPQ determines that inspections at a reduced rate would not compromise United States agricultural resources, as 

the risk of introduction of potentially harmful plant pests and diseases are very low for the agriculture commodities selected for NARP.

Analytical Management Systems Control Office

The Analytical Management Systems Control Office (AMSCO) develops innovative techniques to identify potential 

misconduct issues among frontline CBP personnel working in the air, land and sea environments. The AMSCO 

team applies sophisticated analytical techniques to sort massive amounts of data for transaction anomalies and 

Overview of CBP
17

patterns indicative of potentially corrupt behavior. With a focus on improving data quality and resolving systemic 

vulnerabilities, AMSCO performs national analysis of CBP operations using a multitude of private and public data 

sources. AMSCO detects unintended consequences resulting from deployment of new technologies and coordinates with partnering CBP offices to remedy the vulnerability. AMSCO serves as the mechanism for CBP to build 

a nationwide network of CBP Officers and Agents trained in the use of the analytical techniques. The program has 

developed and deployed data-driven technological tools to monitor and improve adherence to CBP policy which 

have improved accountability and mission engagement among frontline staff and supervisors.

Office of Technology Innovation and Acquisition

The Office of Technology Innovation and Acquisition (OTIA) was established in July, 2010, to ensure that all of 

CBP’s applied technology efforts are properly focused on the mission and well integrated across the agency. In 

addition, OTIA is charged with strengthening CBP’s expertise and effectiveness in acquisition and program management of contractor-delivered products and services. The new office is headed by an Assistant Commissioner 

who also serves as CBP’s Component Acquisition Executive (CAE), providing oversight to all CBP acquisition programs to ensure they are managed in compliance with DHS and CBP regulations and policies.

OTIA manages the Border Security Fencing, Infrastructure Technology (BSFIT) appropriation, which provides for:

•	 Constructing and maintaining TI projects to include pedestrian and vehicle fencing, roads, tower sites, canal 

crossovers, among other similar efforts.

•	 Delivering detection and surveillance technology systems to gain situational awareness of activity at the 

border and provide law enforcement personnel tactical assistance in identifying and resolving illegal activity.

•	 Modernizing Tactical Communication Modernization Program (TACCOM) systems on the Southwest and 

Northern borders for improved operations and agent safety.

•	 Evaluating emerging technologies and innovative applications of existing technology for addressing a wider 

array border security needs.

In FY 2011, OTIA initiated the Arizona Technology Plan in response to the evaluation of the Secure Border 

Initiative-Network (SBInet) program. Guided by an Analysis of Alternatives, the United States Border Patrol (USBP) 

conducted an operational assessment of border surveillance technology in order to identify the appropriate mix 

of technologies required to gain situational awareness and manage the Arizona border area. The resultant Arizona 

technology investment plan is to acquire, deploy, and maintain a mix of agent-related technologies (e.g., night 

vision binoculars, etc.), mobile surveillance capabilities, and integrated fixed tower sensor systems, as well as 

upgraded Border Patrol command centers with enhanced communications and situational awareness displays.

In March 2011, CBP took possession of SBInet Block 1 system deployments in Tucson and Ajo, Arizona, gaining 

approximately 50 miles of situational awareness on the southwest border. The Block 1 configuration includes 

Management’s Discussion and Analysis

Overview of CBP
18 U.S. Customs and Border Protection • Performance and Accountability Report

a deployment of towers with a suite of integrated day and night cameras, radars, Underground Sensors (UGS), 

Common Operating Picture (COP), and a communications package.

On the Northern Border, the Operation Integration Center (OIC), located in Detroit, Michigan, began operations 

in early 2011. The OIC provides a collaborative work area and communications capabilities for representatives of 

components of CBP, U.S. Coast Guard, and other DHS organizations, state and local law enforcement agencies, 

and Canadian law enforcement agencies. The integration of multiple information feeds significantly increases situational awareness, enhancing the ability for agents to plan, coordinate, and perform their missions in an operational environment.

In FY 2011, the TACCOM program completed P25 modernization in the Yuma and Tucson sectors and initiated 

construction in the Houlton Sector. In addition, CBP is implementing the Digital in Place project. This project 

will utilize funds formerly planned for the Laredo Focus Area Modernization to refresh all remaining CBP analog 

land mobile radio equipment nationwide to the digital P25 interoperability standard with Advanced Encryption 

Standard and Over the Air Re-keying capabilities. CBP is also moving forward with a series of technology demonstrators that would assess the potential for purchasing broadband services via third-party network service providers. 

Also, the Tactical Infrastructure program initiated primary pedestrian fence replacement projects in Nogales and 

Douglas, Arizona.

National Border Patrol Strategy

The diverse areas between the POE along our Nation’s borders include urban cities, small towns, farms, and 

ranches, interspersed with miles of open space, deserts, waterways, forests, mountains and prairies. The Border 

Patrol’s mission is to protect this vast area from threats 

of terrorism, exploitation by smugglers of humans, narcotics and other contraband, as well as threats of illegal 

entry into the United States.

FY 2011 marked the culmination of a remarkable period 

of development for the Border Patrol, when the guiding 

principles of the 2004 Border Patrol National Strategy 

were employed to substantially improve security of the 

border. The 2004 National Strategy allowed the Border 

Patrol to adapt to new demands of the post-9/11 mission 

and succeed in its new parent organization by directing 

its energies toward two primary outcomes. First, it organized into a more centralized and headquarters-driven 

organization so that new homeland-security threats could be addressed nationally. Second, it acted to acquire and 

deploy the right mix of unprecedented levels of personnel, technology and infrastructure to incrementally gain 

control of the borders.

Overview of CBP

CBP Border Patrol agent canvasses a remote area of 

the U.S. border.
19

Impressive gains each year from 2005 to 2010 were a testament to the fundamental ability to improve the Border 

Patrol’s law enforcement posture through resource enhancements. By 2011, the strong resource platform allowed 

the Border Patrol to pivot toward refining its strategy to more effectively use existing resources, share information, 

adopt force multiplying partnerships with other law enforcement entities, and employ rapid response capabilities. 

Moving into 2012, efforts are underway to launch the 2012–2016 Border Patrol National Strategy, a matured approach 

to ever-changing border security dynamics, that transitions the organization from a resource-based strategy to a riskbased strategy.

Focused Border Security Enforcement Initiatives

Intelligence Driven Operations: Border Intelligence Centers

The mission of Border Intelligence Centers (BICs) is to prevent terrorists and terrorist weapons, smugglers and 

their contraband, and illegal aliens from entering the United States through the real-time collection, analysis and 

dissemination of tactical intelligence. Originally developed as the Command and Control Intelligence Coordination 

Center in the San Diego Sector, BICs represent a significant enhancement to CBP’s ability to rapidly collect, analyze, 

disseminate and share intelligence information.

The BICs collect and analyze information through the use of databases, operational statistics, other agency intelligence reports and interviews with apprehended illegal aliens and smugglers as well as through the use of geospatial decision support tools. The products produced by the BICs support the implementation of coordinated border 

enforcement operations that result in more effective and efficient deployment of resources to address evolving 

threats and vulnerabilities. Actionable intelligence is forwarded to decision makers at all levels within CBP and is 

shared with DHS components and other law enforcement partners. These efforts support CBP’s commitment to 

become a fully integrated intelligence-driven organization.

Integrated Border Enforcement Teams

The Integrated Border Enforcement Teams (IBET) operate as intelligence-driven enforcement teams comprised of 

U.S. and Canadian federal, state/provincial, and local law enforcement personnel. The IBETs incorporate an integrated mobile response capability (air, land, and marine) designed to provide collaboration and support to participating law enforcement agencies and to serve as a force multiplier to maximize border enforcement efforts in 

support of CBP’s National Strategy. IBETs consist of five core agencies with law enforcement responsibilities within 

the border area. These agencies share information and intelligence, coordinate operations, and share resources to 

maximize border enforcement efficiency and effectiveness. The participating agencies include USBP, ICE,USCG, 

Royal Canadian Mounted Police and Canadian Border Services Agency.

Since their inception, IBETs have enhanced border integrity and security on both sides of the U.S. and Canadian 

border by identifying, investigating, and interdicting persons and criminal organizations that pose a threat to the 

national security of both the United States and Canada. There are 24 IBETs in 15 IBET Regions. Each of these IBETs 

Management’s Discussion and Analysis

Overview of CBP
20 U.S. Customs and Border Protection • Performance and Accountability Report

actively share information, and work bi-national and joint enforcement operations aimed at securing the integrity 

of the United States-Canada border.

Threat-Based Surge Operations

Border Patrol has continued to implement and fully utilize surge operations to improve enforcement. The Border 

Patrol’s strategy for implementing surge operations across the southwest border is based on threats, risks, vulnerabilities and the resources of our partner agencies. These operations increase the probability of apprehending terrorists and the weapons they attempt to move illegally across the border by entering the United States 

between the POEs. These operations also help to reduce crime in border communities. Surge operations are implemented to proactively address actionable intelligence, seasonal migration trends, and other trends in cross-border 

criminal activity.

Consequence Delivery System

Substantial investment in personnel, technology, and infrastructure along the Southwest Border with Mexico 

during the past several years has facilitated reduction of illegal cross border activity to unprecedented levels. This 

reduction in traffic is now enabling the Border Patrol to manage, as opposed to simply react to, the volume of 

illegal traffic along our borders through application of appropriate consequences to illegal entrants.

The Consequence Delivery System (CDS) develops effective strategies to disrupt and degrade Transnational 

Criminal Organizations (TCO) and distribution networks through the use of administrative, criminal, and programmatic consequences. The CDS measures the consequences applied to persons illegally entering the country 

against defined alien classifications. CDS provides a process designed to uniquely evaluate each subject and apply 

the appropriate post-arrest consequences to that individual to break the smuggling cycle and end the subject’s 

desire to attempt further illegal entry. The CDS is a means of standardizing the decision-making process regarding 

the application of consequences, and it gives the Border Patrol the ability to examine the efficiency and effectiveness of individual consequences.

Administrative

Immigration related administrative dispositions and charges are applied to every alien apprehended and progressively result in great limitations and restrictions on an alien’s ability to enter the country. By applying the appropriate administrative consequence, aliens are documented and returned to their country of origin after a complete 

immigration record is established, through consequences such as Expedited Removal, a Notice to Appear before 

and Immigration Judge, or Reinstatement of a prior Order of Removal. Each of these administrative dispositions 

aid in establishing a basis for the future application of consequences and formally provides notice to the alien of 

additional criminal or programmatic consequences that may be applied if future violations occur.

Overview of CBP
21

Criminal

Criminal prosecution is the traditional means by which aliens are held responsible for their illegal actions. Using 

prosecution to deliver consequences for illegal cross-border activity is a critical element in the larger bordersecurity strategy. Prosecutorial consequences, such as Streamline -- a whole-of-government initiative that applies a 

criminal charge for illegal entry (8 USC § 1325) to aliens who enter into the United States through any designated, 

targeted enforcement zone – ensure that our resources and those of our partners are used effectively and efficiently. 

Cooperation is key to the success of criminal prosecution, requiring the support of the U.S. Attorneys Office and 

other Federal, state, and local partners, such as the U.S. Magistrate, Federal judiciary, U.S. Marshals Service, the 

Office of Chief Counsel, Immigration and Customs Enforcement’s Enforcement and Removal Operations, and the 

Executive Office of Immigration Review.

Programmatic

Through the use of several programmatic consequences, such as The Alien Transfer and Exit Program (ATEP) and 

the Operation Against Smugglers Initiative on Safety and Security (OASISS), CDS supports the concept of “breaking 

the smuggling cycle.” In the ATEP program, apprehended aliens are transported out of an apprehending Border 

Patrol sector for their subsequent removal to Mexico through other sectors along the Southwest Border, thus 

disrupting Alien Smuggling Organizations (ASO). Additionally, the OASISS program is a cooperative effort with 

the Government of Mexico to prosecute members of ASOs in Mexico. Using innovative ways to break the smuggling cycle and focus resources by developing programs that achieve specific positive Border Security outcomes 

enhances our ability to affect the future behavior of aliens and ASOs alike. These programs are essential enhancements to the administrative and criminal consequences imposed.

Alliance to Combat Transnational Threats

Operation Alliance to Combat Transnational Threats (ACTT) began on September 5, 2009, in the Tucson Sector’s 

Central Corridor, now currently known as the Focus Area 1 (FA-1) corridor. ACTT utilizes a collaborative, cooperative enforcement approach that leverages the capabilities and resources of the DHS agencies in Arizona, in partnership with other Federal, state, local and tribal governments, as well as the GOM. ACTT targets individuals and 

criminal organizations that pose a transnational threat and are involved in unlawful cross border activity.

The strategic approach of ACTT creates an environment that deters, denies, degrades, disrupts, and applies a consequence to illegal activity and dismantles the criminal elements’ ability to conduct their illicit operations. 

•	 ACTT also applies the CDS to individuals involved in illegal cross border activity. The objective of the CDS is 

to provide a consequence for illegal activity by attaching administrative, criminal, and programmatic penalties to every violation utilizing a vast suite of law enforcement, legal, and administrative actions.

•	 At the field level, the unity of effort is overseen by the ACTT Unified Command (UC). The UC brings together 

the field level leaders of the DHS and State of Arizona agencies that are currently participating in ACTT. The 

Management’s Discussion and Analysis

Overview of CBP
22 U.S. Customs and Border Protection • Performance and Accountability Report

UC directs operational activities, including the development and implementation of overall mission objectives 

and strategies, and approves ordering and releasing of resources for more law enforcement and public safety 

agencies that have agreed to participate in ACTT.

•	 ACTT is currently conducting the following operations in the immediate border area, transit routes and final 

destination locations:

» Coordination with the GOM;

» Focused border enforcement operations – at and between the POEs;

» Defense in depth – including checkpoints and other enforcement efforts along routes of egress;

» Coordinated and focused investigative efforts in both Tucson and Phoenix, Arizona; 

» CDS;

» Mobile Response Team operations;

» Detailed deployment of additional Detection and Surveillance and technology; and

» Deployment of additional assets.

•	 ACTT efforts have resulted in the following in the state of Arizona for FY 2011:

» The seizure of more than 1.1 million pounds of marijuana, 5,000 pounds of cocaine, and 2,100 pounds of methamphetamine;

» The seizure of more than $12 million in undeclared U.S. currency and 192 weapons;

» Almost 8,000 aliens denied entry to the United States at Arizona POE due to criminal background or other disqualifying 

factors; and,

» Approximately 127,000 apprehensions between POEs.

•	 In July 2010, the New Mexico-West Texas (NM/WTX) ACTT was established to target transnational criminal 

activity in an effort to reduce border violence. The NM/WTX ACTT member agencies have succeeded in disrupting the flow of weapons and money into Mexico, enabling more prosecutions domestically and abroad, 

expediting and formalizing information sharing with the GOM, and thwarting a wide variety of smuggling 

attempts by unifying efforts to target Transnational Criminal Organization (TCO) tactics and techniques. 

Success was achieved through close collaboration and well-planned, intelligence-driven operations and 

investigations.

» NM/WTX ACTT will look forward to expanded collaboration with their new members, the U.S. Drug Enforcement Administration 

and the Texas Department of Public Safety, and our many strategic partners.

» NM/WTX ACTT intends to amplify efforts to identify and refer viable investigative targets to member agencies, facilitate and 

support interagency case coordination and training, work to leverage a continued decline in the narcotics-related murders in Mexico, 

intensify collaborative efforts with the GOM, and support and enhance efforts of strategic partners to deter, disrupt, and dismantle 

TCO criminal activities.

Overview of CBP
23

•	 On June 26, 2011, Arizona (AZ) ACTT began a drawdown of detailed resources in AZ with the replacement of 

newly hired Border Patrol agents that reached their initial operation capability.

•	 Arrests decreased 42 percent in the Tucson Sector from FY10 to FY11 (from 212,202 to 123,285).

•	 FY 2012 operations will concentrate on maintaining the significant enforcement gains achieved in Tucson 

Sector, while reducing the number of externally detailed resources. Throughout FY 2010 and 2011, Tucson 

Sector received a significant amount of detailed agents and equipment. The maturation of the agents hired 

through the 2010 Supplemental Funding were in various training statuses by the end of FY 2011. All of these 

new agents will reach initial operating capability by the third quarter of FY 2012. Additional detection capability will be vastly improved with technology expected to be received in Arizona in FY 2012.

•	 DHS is currently implementing a corridor campaign concept in Southern California and South Texas in 

FY 2012, which would provide complete corridor unified enforcement coverage along the Southwest Border. 

Corridor Campaign Operations target criminal organizations involved in illegal cross border activity in order 

to debilitate the criminal elements’ ability to operate in the border region. This will be accomplished through 

the unified and focused efforts of DHS assets currently supported by other Federal, state, local, and tribal law 

enforcement agencies.

Mexican Interior Repatriation Program

USBP, in collaboration with ICE Detention and Removal Operations (DRO) and the GOM, implemented the Mexican 

Interior Repatriation Program (MIRP) in support of border control operations in Arizona. The intent of MIRP is to 

reduce exposure deaths in Arizona by removing voluntary participants from high-risk areas of the Sonoran Desert 

during the peak summer months and repatriating these participants to the interior of Mexico. MIRP also serves to 

break the smuggling cycle by removing the participants from the immediate control of smuggling organizations 

and lastly serves as a deterrent to entering into these high-risk areas.

Caribbean Border Interagency Group

The mission of the Caribbean Border Interagency Group (CBIG) is to optimize joint efforts and serve as a forcemultiplier for our DHS and participating DOJ partners as we work to prevent, detect, and interdict the entry of 

terrorists, weapons of mass destruction, illegal migrants, and illegal narcotics across shared areas of responsibility. 

These partners include USBP, Office of Air and Marine (OAM), and Office of Field Operations (OFO), the USCG, 

ICE and the U. S. Attorney’s Office.

The partnership developed an innovative prosecution template. This process ensures that enforcement efforts 

include gathering evidence sufficient for successful prosecution of violators of maritime or immigration laws. The 

USCG’s development of biometric capability at sea is also a key accomplishment and is critical to identifying and 

categorizing those apprehended as threats. 

During FY 2011, CBIG partners noticed an increase of activity in the Mona Passage. The overall flow of illegal aliens 

attempting to enter through the Mona Channel increased by 83 percent (508 in FY 2010 versus 932 in FY 2011); 

Management’s Discussion and Analysis

Overview of CBP
24 U.S. Customs and Border Protection • Performance and Accountability Report

interceptions at sea increased by 50 percent (20 in FY 2010 versus 30 in FY 2011); landings increased by 76 percent (33 in FY 2010 versus 58 in FY 2011); apprehensions increased by 41 percent; (268 in FY 2010 versus 378 

in FY 2011); and prosecutions, have increased by 84 percent (63 in FY 2010 versus 116 in FY 2011) as the overall 

flow of illegal aliens has increased.

Operation Stonegarden

The Operation Stonegarden (OPSG) grant program is a component of the Homeland Security Grant Program 

(HSGP), which is an important part of a larger coordinated effort by DHS to strengthen Homeland Security preparedness. The HSGP implements objectives addressed in a series of post 9/11 laws, strategy documents, plans 

and Homeland Security Presidential Directives. OPSG funds are intended to enhance cooperation and coordination among local, tribal, territorial, state, and Federal law enforcement agencies in a joint mission to secure the 

United States borders along routes of ingress from international land and water borders. OPSG funds must be used 

to increase operational capabilities for Federal, state, local, tribal, and territorial law enforcement, promoting a 

layered, coordinated approach to law enforcement with U.S. border states and territories.

The United States Border Patrol, with its unique operational knowledge of effective border enforcement, leads 

the coordination of operational planning for OPSG, including evaluation and allocation determinations. In order 

to determine allocations, border security risk is analyzed, and two primary factors are considered: threat and 

vulnerability. Analysis of the threat factor involves the examination of supporting information to determine the 

likelihood and/or impact of an incident or occurrence, as well as the ability and intent of a transnational criminal 

organization to commit an act. Vulnerability is determined by the opportunity for the action or incident to occur 

based on various factors, such as terrain, personnel, technology and tactical infrastructure. Threat and vulnerability can vary significantly; therefore, each factor receives a value based on specific evaluation criteria to calculate 

the risk for planning purposes.

Fiscal Years 2008, 2009, 2010, and 2011 program highlights include:

FY 2008

•	 $60 million appropriated to OPSG

•	 15 states eligible to participate in OPSG

•	 64 counties or equivalent entities received grant awards

FY 2009

•	 $60 million appropriated to OPSG

•	 38 states/territories eligible to participate in OPSG

•	 88 counties or equivalent entities received grant awards

Overview of CBP
25

•	 $30 million supplemental appropriated to OPSG for southwest border states only

•	 30 counties or equivalent entities received supplemental grant awards

FY 2010

•	 $60 million appropriated to OPSG

•	 39 states/territories eligible to participate in OPSG

•	 102 counties or equivalent entities received grant award

FY 2011

•	 $54.9 million appropriated to OPSG

•	 39 states/territories eligible to participate OPSG

•	 114 counties or equivalent entities received grant award

Forward Operating Bases

The use of Forward Operating Bases (FOB) began in the Tucson Sector to address remote crossing points that 

historically have been difficult for agents to patrol because of the vast distances and time involved to access these 

areas. FOBs have proven to be beneficial in the detection and deterrence of illegal entries in the areas in which 

they have been deployed. FOBs are now utilized in the Yuma, Tucson, El Paso, Del Rio, Big Bend, and Rio Grande 

Valley Sectors.

As OBP continues to successfully conduct enforcement operations along the border, illegal migration activities and 

smuggler tactics shift in an attempt to identify and exploit vulnerabilities in border security measures, particularly 

in the more remote areas of the U.S. border. Strategically placed FOBs afford the Border Patrol a cost-effective, 

secure staging facility that allows agents to be deployed in proximity to the border, thus improving CBP’s ability 

to rapidly respond to and counter these shifts in illicit cross border traffic.

Border Patrol Checkpoint Operations

Border Patrol traffic checkpoint operations play a significant strategic and tactical role in the support of the National 

Border Patrol Strategy. USBP currently operates a combination of permanent and tactical traffic checkpoints nationwide as part of a three-tiered, defense-in-depth strategy to secure our Nation’s border between POEs. This strategy involves the use of line-watch operations on the border, roving patrol operations near the border, and traffic 

checkpoints on highways leading away from the border.

The primary target of an effective Border Patrol traffic checkpoint operation is immigration violators. Specific 

operational emphasis is placed on terrorists and their weapons, criminals, and smugglers of both humans and 

Management’s Discussion and Analysis

Overview of CBP
26 U.S. Customs and Border Protection • Performance and Accountability Report

narcotics who have successfully evaded detection at or between the POEs. Traffic checkpoints deter criminal elements from using major traffic arteries as egress routes from the border, which results in improved effectiveness 

of line-watch and roving patrol operations. Smugglers use highway infrastructure to further the illegal entry of 

their smuggling operations into the United States. Highways provide a rapid and cheap means of transporting 

illicit cargo away from the bulk of enforcement assets and to the intended destination. Traffic checkpoints deny 

routes of egress to the criminal element and force them to take alternate avenues that leave them more susceptible 

to detection.

Border Patrol agents at the checkpoint are highly trained to identify suspect vehicles and subjects through a combination of visual, auditory, olfactory, tactile, and logic cues during vehicle and interview inspection. USBP also 

employs specialized resources – such as canines trained to sniff out concealed humans and narcotics, radiation 

detection equipment, and Vehicle and Cargo Inspection Systems (VACIS) – that enhance agents’ ability to prevent 

illegal aliens and contraband from proceeding into the interior of the United States.

During FY 2011, the following border enforcement successes were attributed to Border Patrol traffic checkpoint 

operations nationwide:

•	 8,535 individuals arrested (2.51 percent of total Border Patrol apprehensions)

•	 1,800 cases referred for prosecution

•	 7,486 narcotic seizure events and incidents (45 percent of the total Border Patrol narcotic seizures)

Canine Enforcement Teams

CBP has the largest and most diverse law enforcement canine program in the United States. CBP canine officers 

and border patrol agents use specially trained detection canines to combat terrorist threats, and interdict concealed 

persons, currency, agriculture, narcotics, and other contraband at the POEs, traffic checkpoints, at international 

mail facilities, commercial carrier hubs, and along the 

border between the POEs. Some CBP detection canines 

are trained to perform Border Patrol Search and Rescue 

(SAR) missions. In FY 2008, Border Patrol initiated the 

Special Response Team (SRT) Patrol Canine program, 

training these teams for use in tactical high stress situations. These teams are also another tool in CBP’s ongoing effort to control criminal activity along the border 

and to combat border violence to prevent assaults against 

agents and illegal aliens and control criminal activity 

along the border. At present there are 926 Border Patrol 

teams deployed along the Southwest Border.

Overview of CBP

CBP canines are trained to detect illegal immigrants 

and contraband.
27

These canine teams are assigned to POEs and Border Patrol sectors throughout the United States. Border Patrol has 

also organized a canine/horse patrol unit which allows the canine to work alongside the handler riding on horseback. To meet both new and growing threats, the CBP Canine Program has trained and deployed canine teams in 

an array of specialized detection capabilities. CBP has two canine enforcement training facilities, located in Front 

Royal, VA, and El Paso, TX. In a collaborative effort between its operational and training components, CBP trained 

365 canines in FY 2011, with 39 of those being trained for the GOM.

Expedited Removal Program

A key element of CBP’s ongoing effort to deter illegal entry is the implementation and expansion of the Expedited 

Removal (ER) program to all Border Patrol sectors. ER is a removal process that requires mandatory detention of 

select classes of illegal aliens who can be removed from the United States without an immigration hearing. The ER 

process also has built-in provisions to address aliens who believe they have a claim to credible fear. An alien who 

claims credible fear is interviewed by an asylum officer who determines whether or not the alien has a bona fide 

claim. If a claim is determined to be valid, the alien is not removed from the United States under the provisions 

of the ER program.

The program was expanded to include illegal aliens apprehended by Border Patrol on the southwest border and 

later extended to include apprehensions on the northern border. This includes illegal aliens who are present in the 

United States without having been admitted or paroled following inspection by a CBP officer at a designated POE 

and within 100 miles of the U.S. border. It also includes those who are unable to establish their physical presence 

in the United States for the two-week period before the date of encounter.

In the more than three years since the announcement of the end of “catch and release,” the ER program has 

become a routine way of doing business. As of September 30, 2009, all aliens apprehended along the southwest 

and northern borders who are subject to detention pending removal and are otherwise ineligible for release from 

custody under U.S. Immigration law are now being detained for removal utilizing the ER program if the alien 

meets the guidelines. There are a few exceptions based on humanitarian reasons, but these cases are reviewed on 

a case-by-case basis. In FY 2011, the Border Patrol apprehended 46,997 OTM aliens at the southwest border, 2,978 

along the northern border, and 4,123 on the coastal border, of which all of those subject to removal were detained. 

International Liaison Unit

The mission of the International Liaison Unit (ILU) is to create and maintain positive working relationships and 

foster alliances with foreign counterparts to increase border security. The alliances established by the ILU maintain 

open communications and mutual respect with foreign and domestic law enforcement counterparts. Previously 

named the Mexican Liaison Unit (MLU), which started in El Centro, CA the MLU was reorganized in FY 2008 

as the ILU to standardize national policies and procedures for international liaison. Today, the ILU is operational 

in all Southwest Border Patrol sectors and has dedicated manpower resources of approximately 55 agents, with a 

Management’s Discussion and Analysis

Overview of CBP
28 U.S. Customs and Border Protection • Performance and Accountability Report

coordinator in Washington, DC, and one coordinator in each of the sectors participating in the program. Their 

success was the direct result of relationships formed with Mexican authorities in Federal, state, and local law 

enforcement having the common goal of border safety and security.

The ILU strategic goals are as follows:

•	 Establish, develop, and maintain effective relationships of trust and confidence with individuals representing 

their foreign government agencies;

•	 Identify and develop common law enforcement objectives with foreign governments to combat border crime;

•	 Cultivate and reinforce commitment with foreign and domestic law enforcement communities; and

•	 Develop and maintain information sharing with foreign and domestic law enforcement agencies.

Agents serving under the ILU focus and engage in activities that complement and support current program operations as well as agency and department enforcement strategies.

The ILU’s established partnerships have helped pave the way for programs like the Border Violence Protocols program, formed in an effort to reduce and provide a response to increased violence in the immediate border area 

along the southwest border, and the OASISS. OASISS was a product of the United States-Mexico agreement to establish a bilateral, standardized prosecution program. The OASISS program was developed to address the increasing 

amount of alien smugglers across the Southwest border. The program allows for alien smugglers apprehended in 

the United States to be prosecuted by the GOM. This program has been very effective in areas along the Southwest 

Border that are affected by guidelines that make it difficult to prosecute certain alien smuggling cases. In FY 2011, 

489 OASISS cases were generated, with 516 principals accepted for prosecution by the GOM.

Enforcement Information Technology Advances

COMPSTAT

USBP has implemented COMPSTAT or BPERT (the Border Patrol Enterprise Reporting Tool), a “comparative statistics” application created to support Border Patrol field and headquarters personnel by providing enterprisewide data in a flexible, robust, and user-friendly reporting tool. The comparison of enforcement statistics that 

shows changes in activity has always been used throughout the Border Patrol to continuously adjust operations. 

COMPSTAT is a tool that assists the process of making operational adjustments more efficient by providing actual 

enforcement statistics to field commanders and headquarters staff in a usable format, as well as an “available on 

demand” fashion.

COMPSTAT is a desktop accessed system that provides timely statistical reports containing a compilation of data 

from multiple systems used within Border Patrol, including Enforcement Case Tracking (e3 Processing), the Border 

Patrol Enforcement Tracking System (BPETS), and Intelligent Computer Assisted Detection (ICAD), and display the 

Overview of CBP
29

results in a usable and understandable format. Dozens of pre-formatted reports are available in COMPSTAT. These 

reports allow users to enter a limited number of parameters and compile data for a specific sector or station as 

well as a specific date range. Comparisons can also be viewed in order to see changes in activity levels for different time periods. Data provided by the COMPSTAT application will provide valuable operational and tactical 

information for field analysis. Additionally, a Headquarter (HQ) COMPSTAT module was added to the application 

for Headquarters and Sector Staff to have visibility into a higher, more strategic level of reporting functionality. 

COMPSTAT is currently available to all OBP sectors and stations.

e3 Prosecutions

e3 is a web-based application. The deployment of e3 technology further enhances the ability of tactical field commanders to make informed and operationally effective decisions. e3 Prosecutions serves as a central repository to 

capture information related to the day-to-day processes by which criminal prosecution activities are identified, 

assigned, performed, managed, scheduled, and measured. The information is used to analyze effectiveness and 

efficiency as it relates to the overall mission of securing the Nation’s borders.

Within general guidance from the DOJ, each U.S. Attorney’s Office has its own priorities, and prosecutorial 

guidelines. e3 Prosecutions is a web-based application with the flexibility to adapt to local procedures and regulations as it relates to the form and function of collecting, submitting, and reporting of data, legal articulation, and 

court documents associated with disparate court locations. e3 Prosecutions has ample depth to collect, manage 

and report activities related to cases handled utilizing administrative resolutions or referred to outside agencies. 

e3 Prosecutions allow for electronically submitting and exchanging prosecution case data between other federal 

agencies. This establishes a partnership for efficient parallel missions by eliminating redundant manual data collection. e3 Prosecutions was also developed to manually capture and subsequently update critical data locally during 

systems failures for timely submission to the U.S. Attorney and the Judiciary.

Enterprise Geospatial Information Services

The Enterprise Geospatial Information Services (eGIS) web-based mapping application provides CBP Personnel 

with the ability to view and analyze agency-specific data using any web-enabled computer on CBPnet. eGIS is 

an enterprise-wide, centrally-managed and highly-distributable system supporting operations and data from all 

major CBP offices. By integrating data from multiple, stand-alone CBP systems, eGIS allows aggregated information 

(e.g. border activities, resources, intelligence) to be visualized and analyzed in previously unrealized ways. eGIS 

also provides a flexible mechanism to more efficiently and accurately share information across CBP by publishing 

spatial data services that can be accessed in other applications and allowing user-customized data extraction. In 

FY 2012, eGIS will be migrated to a Silverlight platform which will further enhance application speed and functionality for all CBP users.

Management’s Discussion and Analysis

Overview of CBP
30 U.S. Customs and Border Protection • Performance and Accountability Report

Intelligent Computer Assisted Detection

The ICAD application supports real time tracking of OBP’s covert UGS network and monitors agent dispatch, safety 

and operational status.

ICAD allows Border Patrol Supervisors and dispatchers to monitor, in real-time, the location, status, and activity type of each agent in their area of responsibility. The system provides audible and visual alerts to potential 

dangers an agent may face while on-duty. Supervisors and leadership are able to determine exactly how and 

where resources have deployed or moved throughout the workday and be aware of various situations that assets 

have encountered.

ICAD maintains a full life cycle record of UGS. Since 2011, all sensor acquisitions, transfers and deployments are 

being tracked providing added value to activation and alarm histories. ICAD processes UGS detections based on 

user-defined rules and promotes significant events as alarms. Sensor response and disposition are documented 

allowing users to analyze sensor activations over time.

Sensor alarms and tickets can be viewed from within ICAD or within the eGIS web-based map viewer. In 2012, 

a new web-based module of ICAD4 will allow users and Operation Centers to view sensor alarms from multiple 

stations and sectors in an easy to use, user-configurable interface.

Radiological and Nuclear Detection/Non Intrusive Inspection Program

The mission of the Radiological and Nuclear Detection/NII (RADNUC/NII) Program encompasses a variety of 

technologies. The RADNUC program consists of any piece of equipment that enables an agent to scan, detect and 

identify any radiological/nuclear material concealed within an object. The NII Program encompasses equipment 

that utilizes various x-ray technologies to locate concealed narcotics, guns, explosives, money and stowaways.

During FY11, OBP substantially increased its radiological and nuclear threat detection capabilities by increasing 

the number of fielded PRDs by 2,479. This added capability significantly enhanced the detection capabilities of the 

field agents.

OBP also deployed 19 Z-Backscatter Fords mobile screening devices and deployed them at various locations in 

Texas, Arizona, New Mexico, New York and California for a total of 42 Large Scale NII systems deployed. These 

units provide the agents an enhanced probable cause and consent search capability at traffic checkpoints to more 

effectively and efficiently reveal concealed contraband in passenger and commercial vehicles.

Mobile Surveillance Systems

OBP has 41 Mobile Surveillance System (MSS) units deployed along the Northern and Southern Border. The 

combination of electronic surveillance sensors, when applied in concert with appropriate tactics, techniques and 

procedures, enhance the ability of CBP to detect, identify, classify, and track persons attempting to enter the 

Overview of CBP
31

United States by other than legal or lawfully approved avenues of approach and/or entry. The deployment of this 

equipment helped CBP meet its additional goal of increasing border protection capabilities within its allotted manpower. Future procurements for additional MSS units are underway for FY 2012.

Mobile Processing Center

The Mobile Processing Center (MPC) is a 53-foot, reconfigured semi-trailer that provides a mobile solution to 

mass migration, remote processing and disaster-related incidents. Through the MPC, agents are linked via satellite 

to the DHS/CBP network with access to e3 Processing, IAFIS, email, internet, and other law enforcement systems. 

Additionally, agents are provided with a platform utilizing the Radio Interoperability System to communicate with 

other Federal, state, and local agencies. The MPC is used to assist with emergency responses such as a command 

center for terrorism-related and disaster-relief situations.

Border Safety Initiative

The Border Safety Initiative (BSI) was initiated in June of 1998, building on the longstanding public safety and 

humanitarian measures practiced by the USBP. The primary objective of the BSI is the reduction of injuries and 

prevention of deaths along the southwest border region. Over the past several years, unscrupulous alien smugglers 

have moved migrants into more remote areas with hazardous terrain and extreme conditions. In particular, the 

BSI is intended to inform potential migrants of the hazards of crossing the border illegally and to respond to those 

who are in a life-threatening situation. Through the BSI initiative, USBP works closely with the government of 

Mexico to discourage illegal crossings and to identify those who have perished in the desolate border terrain. In 

FY 2011 there were 485 incidents resulting in 1,070 rescues.

U.S. Visitor and Immigrant Status Indicator Technology

U.S. Visitor and Immigrant Status Indicator Technology (US-VISIT) program launched in 2004 continues to be 

deployed at many of our land, sea, and air POEs. This system provides CBP officers at primary and secondary 

inspection stations with biometric identifiers such as fingerprints (using an inkless fingerprint scanner) and photographs (using a digital camera) to verify the identity of foreign nationals wishing to enter the United States. 

During FY 2008, CBP began deployment of 10 fingerprint scanners to primary POEs. US-VISIT’s biometric information thwarts identity fraud by providing unalterable, unassailable identity information. It is an integral part of 

the entry-exit system that provides CBP with unique identity information to help determine whether someone 

has remained in the country longer than authorized. This system interacts with existing criminal databases that 

identify people with criminal histories and those who may be linked to terrorist activities.

Management’s Discussion and Analysis

Overview of CBP
32 U.S. Customs and Border Protection • Performance and Accountability Report

Capacity Building

CBP is committed to a number of international initiatives aimed at facilitating legitimate travel and trade. CBP continues to collaborate and enhance its partnership with the following nations/international organizations: Canada, 

China, Mexico, World Customs Organization, and the European Union. CBP’s international capacity building 

efforts are designed to improve international relationships and enhance border security by assisting in the adoption of best practices and the development of infrastructure that will allow foreign partners to keep pace with 

changes in the global environment and securing the safe flow of people and goods.

CBP supports the World Customs Organization’s (WCO) Framework of Standards to Secure and Facilitate Trade 

(SAFE) by sharing best practices and implementing training modules to protect the global supply chain from the 

threat of terrorism. To this end, CBP participated in the WCO Policy Commission and Council Sessions (June 2011) 

and ensured successful integration of U.S. 10+2 elements in the WCO SAFE Framework of Standards to Secure 

and Facilitate Global Trade. This integration will provide authoritative global guidance on supply chain security to 

reflect contemporary practices in line with those of the United States.

CBP’s international capacity building efforts are focused on the following areas: international narcotics and 

crime control; non-proliferation; export control and related border security; commercial enforcement operations; and private sector partnership programs. Each program begins with a border security assessment designed 

to determine the type of training and/or equipment needed to improve operations within the host foreign 

country. Additionally, the assessments provide the host government with a better understanding of their border 

control vulnerabilities.

To address the identified vulnerabilities, CBP has established joint partnerships with international organizations, 

federal government agencies, and other foreign partners. Funding for these programs is provided by a number of 

entities including the International Law Enforcement Academy, DOS’s Bureau of International Security and Nonproliferation, U.S. Agency for International Development, DOD, DOE, and the Defense Threat Reduction Agency. 

During FY 2011, CBP provided 246 capacity building sessions for foreign partners including 19 courses at the 

International Law Enforcement Academy and provided capacity building support in over 75 countries.

Mexico Initiatives

CBP is heavily involved in a number of high-profile initiatives with the GOM, such as; the Bilateral Strategic 

Plan, Border Violence Protocols, Joint Targeting Initiative and the Merida Initiative. The most prominent of these 

has been the Mexico Merida Initiative, a multi-year assistance plan that has provided over $1.9 Million in U.S. 

Government funding during FY08, 09 and 10 to bolster customs and law enforcement infrastructure in Mexico. 

CBP has partnered with other agencies on southbound border initiatives focusing on bulk cash and weapons 

smuggling into Mexico to help curtail the negative impact of these and other illicit activities.

Overview of CBP
33

Implementation of the CBP Trade Strategy

The CBP Trade Strategy is a framework for management of the agency’s trade mission. In FY 2011, CBP implemented expanded performance measures based on the Trade Strategy. These measures will provide a more complete picture of how the various trade programs contribute to full implementation of the CBP Trade Strategy.

CBP implements its Trade Strategy by focusing on the management and enforcement of designated Priority Trade 

Issues (PTI), such as Antidumping and Countervailing Duties (AD/CVD), Intellectual Property Rights, and Textiles.

CBP has created a Re-Engineering Dumping “RED” Team composed of members of many different offices within 

CBP. This group is charged with developing an operational protocol to frame the import process for entries subject 

to AD/CVD from foreign places of manufacture through export and summary processes and then identify where 

and what are the threats, challenges, and vulnerabilities in each step of the process. The team focuses on transshipment, under-collections, the role of shell companies, and other gaps/vulnerabilities/challenges.

In FY 2011, CBP completed Textile Production Verification Team visits to nine countries to validate factory production and the accuracy of trade preference claims. A total of 165 factories were visited, with 36 either closed or 

unable to show production, and 45 that could not support their trade preference claims.

CBP’s Office of International Trade (OT) implemented a new PTI for FY 2011 that focuses on trade agreement claims 

for non-textiles and apparel. CBP will initiate a comprehensive risk-based trade agreements enforcement plan that 

will identify areas of significant non-compliance and develop an appropriate enforcement plan to address these 

risks. CBP will also work with domestic and international stakeholders to facilitate legitimate trade, while effectively communicating the terms of our Federal Trade Agreement and preferential trade legislation. CBP is strengthening trade agreement expertise in the field by providing training courses to its import specialists, auditors, and 

account managers.

Importer Self-Assessment

Importer Self-Assessment (ISA) provides the opportunity for importers who have made a commitment of resources 

to assume the responsibility for self-monitoring their compliance in exchange for less intrusion by CBP. The primary objective of the program is for the company to maintain a high level of trade compliance through an open 

CBP-trade partnership and cooperative interchange of information and ideas. CBP currently has 225 importers participating in the ISA program, which represents approximately 23 percent of the total import value into 

the United States.

Advancing Import Safety

CBP continues to reiterate its commitment to Import Safety. One key achievement designed to improve interagency 

cooperation is the Border Interagency Executive Council (BIEC). The focus will be on achieving solutions that 

Management’s Discussion and Analysis

Overview of CBP
34 U.S. Customs and Border Protection • Performance and Accountability Report

satisfy the needs of multiple agencies and provide the public with a unified “U.S. Government” approach to trade 

and import safety. Three BIEC working groups have been established to achieve this goal: Document Imaging 

System (DIS), information sharing, and partnership programs:

•	 The DIS technologies workgroup will be considering not only current capabilities but also potential use and 

impact on operation functions such as pre-arrival review, targeting, and supply chain compliance and certification. Simultaneously, CBP is undertaking efforts to develop and implement DIS, a system designed to provide the capability for trade participants to submit documents electronically for review by CBP and the OGAs.

•	 The Information Sharing workgroup will explore the feasibility of information sharing across agencies, 

accounting for regulations limiting how agencies can share data. Through greater information-sharing, the 

federal government can leverage inspection and regulatory expertise to facilitate admissibility determinations, 

provide advance notice of problems, and enhance enforcement capabilities.

•	 The Partnership Programs workgroup will explore options for a government-wide approach to partnership 

programs by reviewing existing partnership programs, analyzing best practices, and identifying obstacles to 

ensure an effective, consistent government approach to partnerships.

Protection of Intellectual Property Rights

Intellectual Property Rights (IPR) are a prominent enforcement priority for CBP, which is consistent with its mission to protect the economy, national security, and the health and safety of American citizens.

In FY 2011, CBP sustained its close work with the Intellectual Property Enforcement Coordinator (IPEC) to implement recommendations from the 2010 Joint Strategic Plan on Intellectual Property Enforcement. CBP conducted a 

joint IPR enforcement operation against counterfeit pharmaceuticals in the mail and express consignment environments with 11 Asian-Pacific Economic Cooperation member economies, 

resulting in numerous seizures from all participating economies and model 

enforcement practices that will help establish an international standard. In 

addition, CBP amended its Memorandum of Understanding with China 

Customs to increase information sharing capabilities for IPR enforcement 

that will help CBP and China Customs increase enforcement against counterfeit goods shipped between China and the United States.

CBP continued its implementation of the agency’s ambitious and ground 

breaking Five-Year IPR enforcement strategy which focuses on facilitation, enforcement, and deterrence. Integrated field training covering legal 

authorities, targeting, and policy was implemented at high-risk ports. In 

addition, an Admissibility Compliance Measurement program was initiated 

at International Mail Facilities to assess the level of compliance of imports, 

particularly with laws pertaining to IPR and pharmaceuticals. Referrals 

from Operation Network Raider, a joint operation with ICE and the FBI 

Overview of CBP

Counterfeit products are a violation 

of intellectual property rights.
35

continued to result in over 30 felony convictions and 700 seizures of counterfeit Cisco network hardware manufactured in China.

Regulations and Rulings

OT’s Regulations and Rulings (RR) provides essential technical legal support, advice and guidance for all of CBP’s 

trade operations and much of CBP’s border operations on a national basis. In its administrative decision and rulings role, RR provides binding uniform guidance with respect to the application of the customs and trade laws 

including tariff classification, valuation, marking, origin, import procedures and the navigation laws (including 

the Jones Act). By issuing final administrative decisions and advice on major penalty and other civil enforcement 

matters, RR ensures uniform and impartial application of enforcement laws while facilitating legitimate trade. In 

its regulatory document development role, RR is responsible for creating the legal and administrative framework 

that enables CBP’s trade and border security operations and programs to be implemented successfully on a national 

basis. These legal tools often have major impact on the conduct of trade and on the ability of CBP to protect the 

homeland against unsafe persons and goods.

Advance Rulings have been identified by the Organization for Economic Cooperation and Development (OECD) 

in its 2011 Trade Policy Working Paper (No. 118) entitled, Trade Facilitation Indicators, as “the most significant trade 

facilitation measure.” In FY 2011, RR issued binding rulings and decisions on trade and revenue issues regarding 

tariff, trade and commercial facilitation requirements as well as responded to QUICS inquiries from ports and 

other inquiries from ports via other informal means on a variety of tariff and trade matters within prescribed time 

limits. In addition, RR provided technical assistance to the Account Executive pilot by defining the “electronics” 

industry and identifying associated HTS numbers and provided technical advice to the Center of Excellence and 

Expertise pilot (CEE) by defining the HTS numbers associated with the pharmaceutical industry, and RR prepared 

the Pharmaceutical Guidance Paper distributed through CEE to all ports.

In FY 2011, RR published and developed Federal Register Documents (Notices and Regulations) that effectuated 

trade and commercial requirements and modernization or partnership initiatives and implemented or expanded 

border security and traveler initiatives.

In late June 2011, President Obama directed the release of 30 million barrels of crude oil from the Strategic 

Petroleum Reserve (SPR).

Expeditious delivery of the large volume of SPR oil required the use of numerous vessels, including foreign-flagged 

vessels. All companies transporting SPR oil via foreign-flagged vessels require Jones Act waivers. RR led the multioffice Strategic Petroleum Reserve Communication Action Team (SPR CAT), comprised also of CBP members from 

OIIL, Counsel, OES, OPA, that handled all responses to request for Jones Act waivers to allow foreign-flagged 

vessels to distribute crude oil from the SPR within a thirty day window. The SPR CAT processed incoming Jones 

Act waiver requests, ensured their completeness, logged tracking data on each request, prepared memoranda, and 

maintained daily communication with its partners at the Department of Transportation and the Department of 

Management’s Discussion and Analysis

Overview of CBP
36 U.S. Customs and Border Protection • Performance and Accountability Report

Energy. The RR members of the SPR CAT processed 52 Jones Act waivers in less than 60 days to implement the 

Presidential order to release crude oil from the Strategic Petroleum Reserves by August 31st.

Reducing CBP Exposure to Revenue Loss/Risk

With the growth in imports and in AD/CVD cases in recent years, CBP has seen some increase in its exposure to 

revenue loss. To stop the circumvention of U.S. trade laws, CBP identifies high-risk areas and acts to enforce U.S. 

trade laws and collect proper revenue. Actions include entry reviews, post audits, and necessary cargo examinations. 

CBP coordinates internally and with other OGAs to ensure that enforcement actions are consistently applied. 

Events are uniformly recorded; results are integrated; and, trade information is shared across the enterprise. CBP 

provides field personnel with the knowledge, tools, and training to identify and address violations related to PTIs. 

CBP’s Fines, Penalties and Forfeitures (FP&F) Officers and Seized Property Specialists take enforcement actions that 

deliver immediate impact to non-compliant importers and help deter future non-compliance.

In FY 2011, CBP will develop and finalize the AD/CVD Action Plan. This plan will call for the continued efforts of 

the RED Team as well as the creation of a 5 Year AD/CVD Strategy. CBP will also build on and publicize the very 

successful enforcement cases related AD/CVD such as the sentencing to 70 months and fines of over $7 Million for 

two individuals who were convicted of illegal transshipment of wire hangers.

Management by Account

In FY 2010, CBP identified several initiatives using account-based principles, known as Manage by Account (MBA). 

Several of these initiatives adopt a holistic view of account-based processing. These priorities represent a shift from 

a transactional-based management system to one that corporately addresses trade factors through facilitation and 

enforcement mechanisms. As part of this, CBP initiated two pilots to test the agency’s MBA ability, resulting in 

greater facilitation and more effective enforcement. The Centers for Excellence and Expertise (CEEs) and Account 

Executive (AE) pilots were initiated in November 2010.

Modernizing Trade Policies and Processes

Other CBP initiatives underway include Role of the Broker and Simplified Processes, both of which focus on using 

modern tools to achieve efficiencies for the government and the trade community. The goals of these initiatives 

are to reduce administrative burdens and costs related to importing into the United States and bring anachronistic 

customs procedures into the 21st Century global trade environment. At the core of these initiatives is CBP’s layered, 

risk segmentation approach employing numerous efforts in the pre-entry, entry, and post-release environments to 

prevent, address, and deter trade law violations.

Overview of CBP
37

International Trade Data System

CBP has reiterated its commitment to advancing the International Trade Data System (ITDS) program, the “single 

window” vision that would provide all parties involved in trade and transport access to standardized information 

and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. 

CBP is pursuing three near term measures as a tangible demonstration of this commitment.

•	 Measure 1: CBP will add data elements required by other agencies to the major import reporting messages 

(entry, and entry summary). The new records for the Customs and Trade Automated Interface Requirements 

(CATAIR) have been published on CBP.gov for review by the trade. CBP is developing the infrastructure to 

capture and store the Participating Government Agencies (PGA) specific data to be submitted by the trade initially in conjunction with the Automated Commercial Environment (ACE) Entry Summary. This foundational 

capability is projected for delivery in late Fall 2011.

•	 Measure 2: CBP will develop the capability to accept the transmission of imaged forms (such as pdf files), 

which may currently only be submitted on paper. CBP has delivered the capability for the trade to submit 

electronic image files of documents related to ACE Entry Summaries through the DIS.

•	 Measure 3: CBP will complete its plans related to the technical interoperability between CBP and other 

agencies’ systems in order to allow the other agencies to continue with their plans for using ITDS and investing in automated systems to work with ACE/ITDS. CBP has documented the protocols for interfaces with 

PGA systems and has begun actively testing that interface with the first PGA who was ready to link systems. 

Additional PGAs are planning on utilizing the interface standards in FY 2012. Expansion of these protocols to 

encompass the data that will be provided by the trade through the PGA Message Set is planned for FY 2012.

Implementation of the National Annual Audit Plan

The FY 2011 National Annual Audit Plan was developed to provide the appropriate balance of audit support for 

trade security, facilitation, enforcement initiatives and import safety in keeping with the mission intent and goals 

of CBP. The plan was designed to address the CBP PTIs and included coverage of issues such as revenue protection, 

IPR, agriculture, import safety issues, AD/CVD, user fees, free trade agreements and supply chain security reviews 

of non-CTPAT member companies. Results for FY 2011 include:

•	 384 audits completed (as of September 21, 2011);

•	 Approximately $81 million to date in recommended recoveries, including user fees, identified in all 

audits completed;

•	 Approximately $43.7 million in collections from current and prior audits issued, including penalties to 

date; and

•	 289 audits in progress to date.

Management’s Discussion and Analysis

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38 U.S. Customs and Border Protection • Performance and Accountability Report

Looking Ahead

CBP continues to expand and enhance mission effectiveness by its forward-looking approach to secure America’s 

borders and the vitality of our economy.

CBP Office of Air and Marine

CBP’s Office of Air and Marine (OAM) secures the borders against terrorists, acts of terrorism, drug smuggling, 

and other illegal activity by operating air and marine branches at strategic locations along the borders. Multimission aircraft with advanced sensors and communication equipment provide powerful interdiction and mobile 

capabilities directly in support of detecting, identifying, and interdicting suspect conveyances, and apprehending 

suspect terrorists and smugglers. OAM maximizes the capabilities of air and marine assets through a cohesive joint 

air operations model for centralized command and control and a responsive and integrated control system for 

decentralized execution.

OAM works in partnerships with numerous stakeholders in performing its missions throughout the continental 

United States and the Western Hemisphere. This includes domestic operations at the borders; source, transit, and 

arrival zone operations; interior law enforcement support; and, support to other agencies. Truly cross-cutting 

within DHS and the Federal Government as a whole, the unique capabilities of OAM serve as both a stand-alone 

entity and as a force multiplier. To fulfill the CBP mission of border protection, the focus has expanded from a 

concentration on the southern border to a broader initiative that includes all of our Nation’s borders.

OAM continues to strategically address threats and challenges by deploying additional air and marine assets, facilities, and personnel. OAM has identified new site requirements to expand its surveillance and interdiction coverage 

across the maritime approaches to the United States and is addressing personnel needs by hiring additional agents 

and staff. Concurrent with these efforts, OAM continues to build management and infrastructure systems that will 

effectively support field operations, including CBP agents and officers on the ground.

In FY 2009 Air and Marine continued to standardize and modernize its fleet in support of the Air and Marine 

Strategic Plan to recapitalize aging aviation and marine assets. Inventories of helicopters, fixed wing, unmanned 

aircraft systems, and interceptor vessels were expanded with new acquisitions and deliveries of prior year procurements. This multi-year investment in Air and Marine capital assets will help to support expanded border surveillance and maritime domain awareness.

Unmanned Aircraft System

Beginning in November 2004, CBP conducted test programs using unmanned aircraft for surveillance missions 

along the U.S.-Mexico border in Arizona. The test results were very positive and CBP initiated the Unmanned 

Aircraft System (UAS) program in 2005. The UAS provides an efficient and reliable supplement to existing detection 

Overview of CBP
39

and intelligence gathering technologies. Remotely-piloted aircraft have a significant advantage over manned aircraft with the capability to fly up to 20 operational hours. This technology has proven highly successful in supporting existing manned aircraft, maintaining current ground assets, and monitoring remote portions of the 

border that are often difficult to reach safely or are unable to accommodate infrastructure devices. Since the start 

of operations in 2004, UASs have been instrumental in the apprehension of undocumented aliens, the seizure of 

drugs, and the recovery of stolen vehicles. UASs have proven effective in locating subjects during hours of darkness 

and providing a situational awareness and officer safety capability that is unparalleled.

In March 2008, OAM hosted a Joint Maritime UAS demonstration at Tyndall Air Force Base (AFB), FL. The event 

was the culmination of more than a year’s work to deploy and demonstrate the integration of a variant of the 

Predator B UAS within OAM and USCG maritime operations. The demonstration took place in the northern Gulf of 

Mexico and the Florida Straits and involved air and marine response assets from OAM and USCG. This Gulf Coast 

demonstration validated the usefulness of integrating a suite of sensors (radars, electro-optical, and Automated 

Identification System (AIS)) on a UAS and applying it in an operationally relevant environment. In July 2008 

OAM hosted a Joint Requirements summit to determine the required capabilities of sea search radar for the maritime variant. During FY 2008, OAM also conducted test and evaluation flights along the northern borders of the 

United States. Of the ten UASs funded through FY 2011, seven have been inducted into inventory. It is anticipated 

that two additional systems will be delivered by December 2011, and the tenth by July 2012.

Of the seven operational UASs, three are assigned along the southwest border, based and operated from Fort 

Huachuca, Arizona, and two are assigned along the northern border, based and operated from Grand Forks AFB, 

North Dakota. The sixth UAS is a maritime variant and is currently based and operated from Cape Canaveral Air 

Force Station, Florida. The seventh aircraft, configured as a maritime variant, is based and operated from Naval Air 

Station Corpus Christi, Texas. The locations for the final three system locations have not been determined.

UASs will continue to be used in securing the border of the United States by providing strategic intelligence, surveillance, and interdiction support. CBP was the first Federal law enforcement agency to fly unmanned aircraft on 

a sustained basis, outside of restricted airspace, within the United States.

The UAS has proven extremely effective at responding to ground sensor alerts and classifying and identifying the 

threat. The rapid response time and enhanced classification capabilities act as force multipliers, and provide timely 

intelligence to field operators used to determine the appropriate response. Resources can then be dispatched based 

on a known threat to resolve the event in the most effective and efficient manner possible. The UAS also often 

orbits overhead to assist in directing agents on the ground, which enhances situational awareness at the point of 

interdiction, increases officer safety, and brings the event to a quicker resolution.

Land Border Integration

OFO is working to capitalize on the success of the WHTI investment by expanding innovative technologies and 

processes to provide further efficiencies in both security and facilitation at the land border. The comprehensive 

Management’s Discussion and Analysis

Overview of CBP
40 U.S. Customs and Border Protection • Performance and Accountability Report

Land Border Integration strategic focus is targeted on mission-integrated investments in outbound enforcement 

operations, inbound processing, and border patrol checkpoint processing. Strategies include a 100% query rate 

initiative; a pedestrian reengineering initiative; and an outbound enforcement initiative.

Field-level involvement of land border integration initiatives includes participation in port optimization projects 

such as Ready Lanes; Light-Emitting Diode (LED) Signage; Lane Optimization; and Rapid Log-on.

More than 84,000 vehicles and 143,000 travelers are now using Ready Lanes each week. Ready Lanes are lanes 

dedicated to processing travelers with RFID-enabled documents only. At most ports, the Ready Lanes are the busiest lanes at that location. Wait times in Ready Lanes are substantially lower than general POV lanes. Ready Lanes 

have been deployed to the Ambassador Bridge (Detroit); Del Rio; Ysleta (El Paso); Donna; DeConcini (Nogales); 

Peace Arch (Blaine); Lukeville; Otay Mesa; Eagle Pass; Douglas; Lincoln-Juarez (Laredo); Buffalo (Rainbow Bridge 

and Peace Bridge); Calexico East; and Brownsville (Gateway Bridge). Ready Lanes are planned to be deployed to El 

Paso (PDN Bridge and Bridge of the Americas); San Luis; and San Ysidro.

The LED signage project is deploying signs to ports nationwide to better manage traffic flow and provide information to travelers. LED signage is operational at four crossings in the Seattle Field Office, one crossing in the Boston 

Field Office, seven crossings in the Laredo Field Office, and one crossing in the San Diego Field Office. Crossings in 

the El Paso Field Office and Tucson Field Office were deployed in the 4th quarter FY 2011. During FY 2012, Phase 1 

of LED signage deployment will be completed with the addition of two crossings in the Buffalo Field Office. Phase 

2 of LED signage deployment is planned for completion at fourteen crossings – eleven on the Southwest border 

and three on the Northern border.

Generic Log On reduces the amount of time it takes for Vehicle Primary Client to launch, cutting in half the down 

time during a shift change. It has improved throughout deployed sites. Generic Log On is now available at all Field 

Offices and in the vehicle and pedestrian environments.

Land Border Integration is also evaluating avenues to optimize port operations to bring efficiencies gained in 

Ready Lanes to the pedestrian environment. A pilot project to use low power transmitters to communicate messages at the border is planned. Further, the applicability of mobile handheld technology for use during primary 

inspections of people, cargo and agriculture at remote locations (e.g., rail yards, vessels in stream, small General 

Aviation airports, etc.) and in secondary inspections is being investigated.

Outbound

CBP is also responsible for ensuring that travelers and commerce departing the United States comply with U.S. 

export laws and regulations. CBP’s outbound mission is to interdict the illegal export of unreported currency 

(including proceeds from narcotics trafficking and other illicit activities that are fueling violence along the southwest border); arrest fugitives; interdict illegal exports of firearms and ammunition; prevent international terrorist 

Overview of CBP
41

groups and rogue nations from obtaining sensitive and controlled commodities; interdict stolen property, including stolen vehicles; and, increase export compliance.

To perform this mission, CBP utilizes a “pulse and surge” strategy for inspecting people, cargo, and conveyances 

departing the United States through all airports, seaports, land border crossings, and at international mail/courier 

facilities. Pulse and surge operations allow CBP to conduct outbound enforcement action while remaining unpredictable to smuggling organizations in order to facilitate the flow of legitimate trade and travel.

The success of CBP’s outbound mission relies on its overall layered enforcement strategy. This strategy includes 

CBP officers utilizing their experience, deployment of currency/firearms canine teams, providing the officers 

with actionable information (e.g. through leveraging human and network intelligence), increasing cooperative 

federalism (i.e., working with other foreign, U.S. Federal, state, local and tribal law enforcement agencies), and 

use of various inspectional tools to assist in outbound operations. The mission on the southwest border will also 

benefit from planned upgrades and expansion to the existing License Plate Reader (LPR) program, outbound 

infrastructure improvement, and enhancements to outbound automated targeting systems. The LPR program and 

automated targeting system enhancements will increase CBP’s capabilities to identify and interdict fugitives, persons of interest or contraband (i.e., unreported currency, firearms smuggling, stolen vehicles) before they depart 

the United States.

Electronic System for Travel Authorization

Electronic System for Travel Authorization (ESTA) allows CBP to effectively screen the information provided to 

determine whether an alien presents a security risk and is eligible for travel to the United States. Determining eligibility for Visa Waiver Program (VWP) travel in advance of travel will reduce the number of instances in which 

a traveler who does not meet VWP criteria arrives in the United States and is subsequently denied admission. In 

such cases, the traveler and the carrier incur an additional expense as an immediate return to the country of origin 

is required.

CBP screens travelers against appropriate databases to identify potential threats to the security of the United States. 

Those travelers determined to be inadmissible as a result of this screening are denied a travel authorization via 

ESTA and as a result are unable to travel to the United States under VWP. Those persons denied via ESTA are given 

the opportunity to apply for a visa to travel to the United States at the nearest U.S. Embassy or Consulate.

Currently, the ESTA web site appears in English and 21 other languages and has the full capacity to process the total 

volume of Visa Waiver travelers arriving to the United States. ESTA became mandatory for all VWP travelers in 

January 2009. In January 2010, CBP began enforcing compliance by requiring airlines to verify ESTA status before 

boarding passengers. At the end of 2011, the compliance rate for travelers was over 99.5 percent.

Management’s Discussion and Analysis

Overview of CBP
42 U.S. Customs and Border Protection • Performance and Accountability Report

In FY 2011, CBP introduced a fee mandated by the Travel Promotion Act. This $14.00 fee is required of all new 

applications. $10.00 of the fee funds the Corporation for Travel Promotion, and $4.00 funds the ESTA webbased application.

Human Resources Management

The Office of Human Resources Management (HRM) has developed a five-year strategic plan to effectively meet 

the challenges of CBP’s future state. HRM’s plan outlines a proactive course of action for building a sustainable 

infrastructure to handle the agency’s projected growth, providing quality service and products to its customers, 

and integrating CBP’s long-term human resources goals and objectives. HRM’s strategic goals are: 1) to become 

a premier provider of customer-centric Human Resource (HR) advisory services; 2) to promote an environment 

that values employees; 3) to attract and retain a workforce that is capable of meeting CBP’s mission; and 4) to build 

an infrastructure that provides for dynamic HR services.

Summary

CBP will continue to integrate state-of-the-art technologies and traditional security infrastructures at U.S. POEs and 

along our Nation’s borders and to work in collaboration and partnership with the trade community and foreign 

governments to secure the United States from terrorists and terrorist weapons while facilitating world commerce.

Overview of CBP
Management’s Discussion and Analysis 43

CBP Organization

Commissioner

Deputy 

Commissioner

Director

State, Local, and 

Tribal Office

Executive Director

Office of Diversity 

and Civil Rights

Assistant 

Commissioner

Office of Field 

Operations

Chief

Office of Border Patrol

Assistant 

Commissioner

Office of Air and Marine

Assistant 

Commissioner

Office of Intelligence 

and Investigative Liaison

Director

Office of

Trade Relations

Executive Director

Office of Policy 

and Planning

Office of 

Chief Counsel

Chief of Staff

Deputy Chief 

of Staff

Assistant 

Commissioner

Office of International 

Affairs

Assistant 

Commissioner

Office of International 

Trade

Assistant 

Commissioner

Office of 

Congressional Affairs

Assistant 

Commissioner

Office of Administration

Assistant 

Commissioner

Office of Human 

Resources 

Management

Assistant 

Commissioner

Office of 

Internal Affairs

Assistant 

Commissioner

Office of Public Affairs

Assistant 

Commissioner

Office of Training 

and Development

Assistant Commissioner

Office of Technology 

Innovation and 

Acquisition

Assistant Commissioner

Office of Information and 

Technology

Director

Office of the 

Executive Secretariat

Overview of CBP
44 U.S. Customs and Border Protection • Performance and Accountability Report

Headquarters

Office of the Commissioner: On March 27, 2010, Alan Bersin was appointed by President Barack Obama as Commissioner 

of CBP and is responsible for securing, managing, and controlling our Nation’s borders. As Commissioner, Mr. 

Bersin advances CBP’s priority mission of preventing terrorists and terrorist weapons from entering the United States 

while facilitating legitimate trade and travel.

Deputy Commissioner: David V. Aguilar was named Deputy Commissioner of CBP on April 11, 2010. Mr. Aguilar is 

responsible for providing leadership and executive-level direction to CBP’s day-to-day operations. This includes 

oversight of agency initiatives that facilitate the international movement of legitimate, low-risk goods and travelers 

while promoting effective border security.

Chief of Staff (COS): Serves as the direct liaison to DHS for all agency issues. The COS assists the Commissioner in 

formulating and implementing policies through coordination with other CBP office components, DHS, and other 

Government agencies. The COS provides advice and counsel to the Commissioner in defining priorities to accomplish CBP mission and goals.

Office of Chief Counsel (OCC): Serves as the chief legal officer of CBP and reports to the General Counsel of DHS. The 

Chief Counsel serves as the Ethics Officer for the organization and is the principal legal advisor to the Commissioner 

of CBP. The OCC provides legal advice to and legal representation of CBP officers in matters relating to the activities 

and functions of CBP.

Office of Executive Secretariat (OES): Is responsible for ensuring appropriate and expeditious action on all requests for 

information, executive correspondence, and official memoranda addressed to the Commissioner and other CBP 

and DHS senior officials. OES provides direct support to the Commissioner and Deputy Commissioner, as well as 

related support to leadership and management across the agency.

Office of Diversity and Civil Rights (DCR): Is responsible for developing and administering all CBP programs and 

activities necessary to ensure compliance with the Federal anti-discrimination laws, regulations and policies and 

civil rights and civil liberties requirements necessary to facilitate lawful individual travel and trade across the 

United States borders, while ensuring national security and economic prosperity. DCR strives to implement initiatives that sustain, retain and advance a highly qualified ethical workforce that attracts the most qualified candidates 

that America has to offer. In addition, DCR ensures that CBP is a progressive champion of diversity and inclusion 

by providing activities and programs that celebrate and honor all individuals.

Office of State, Local, and Tribal Liaison: Advises the Commissioner, Deputy Commissioner, and program offices 

regarding the impact of CBP policies and initiatives on state and local stakeholders. The liaison also acts as the 

primary conduit for information to, and guidance from, the DHS Office of Intergovernmental Affairs. In terms 

of external responsibilities, the liaison works to inform state and local stakeholders of current and proposed CBP 

Overview of CBP
45

programs, assists these stakeholders in addressing concerns with CBP programs, and assists in building and maintaining partnerships between CBP and state and local governments.

Office of Policy and Planning (OPP): Advises the executive staff on policy development and implementation in the 

broad array of issues addressed by CBP, including national border security policy, immigration enforcement, 

cargo security and facilitation, agriculture protection, interagency coordination, and legislation. The office further 

coordinates with individual offices and programs inside and outside the agency to develop specific strategies and 

planning guidance that support CBP’s mission.

Office of Trade Relations (OTR): Is responsible for managing CBP’s outreach and communications with the international trade community. The Office ensures that the trade community and the public understand that trade is an 

integral part of CBP’s mission: making America safer, stronger, more prosperous, and economically competitive. 

OTR’s mission is to continually improve relations between CBP and the trade community by enhancing collaboration, cooperation, and inform decision-making at all levels including operational, legislative, and political. OTR 

is also responsible for organizing and presenting formal CBP outreach efforts to the trade community, including 

CBP’s annual Trade Symposium, monthly trade day meetings, trade roundtable meetings, and webinars. OTR 

manages the Advisory Committee on Commercial Operations of U.S. Customs and Border Protection (COAC), a 

congressionally mandated trade advisory group. OTR is the designated regulatory fairness representative for the 

agency with responsibility for promoting compliance with the Small Business Regulatory Enforcement Fairness 

Act (SBREFA).

Component Organizations and Field Structure

CBP is organized into 14 separate offices, each of which reports directly to the Commissioner. The mission of each 

office is described briefly below:

Office of Field Operations (OFO): Enforces customs, immigration, and agriculture laws and regulations at U.S. borders 

and has the primary responsibility for preventing terrorists and their weapons from entering the United States at 

the POEs. OFO maintains programs at 20 field operation offices; 329 POEs, 15 preclearance stations in Canada, the 

Caribbean, and Ireland; and 58 CSI ports worldwide. A Director of Field Operations heads each field office. Port 

Directors oversee POEs in their operational areas, where virtually all conveyances, passengers, and goods legally 

enter and exit the United States. OFO oversees the enforcement of laws and regulations while ensuring the safe 

and efficient flow of goods and people through the POEs.

Office of Border Patrol (OBP): Serves as the CBP law enforcement organization with the primary responsibility of 

preventing terrorists, weapons of terrorism, illegal aliens, drugs, and those who smuggle them, from entering the 

United States between the POEs. The Border Patrol is organized into 20 sectors along the southwestern, northern, 

and coastal areas of the United States.

Management’s Discussion and Analysis

Overview of CBP
46 U.S. Customs and Border Protection • Performance and Accountability Report

Overview of CBP

Office of Air and Marine (OAM): Protects the American people and critical infrastructure through the coordinated 

use of integrated air and marine forces to detect, interdict, and prevent acts of terrorism and the unlawful movement of people, illegal drugs, and other contraband toward or across the borders of the United States. OAM’s core 

competencies include air and marine interdiction, air and marine law enforcement, and national border domain 

security. OAM further supports DHS missions such as the response and recovery to natural disasters and terrorism.

Office of Intelligence and Investigative Liaison (OIIL): Develops, coordinates and implements intelligence capabilities to 

support the execution of CBP’s mission to secure America’s borders while facilitating legitimate trade and travel. 

OIIL serves as a coordinating facilitator that integrates CBP’s diverse intelligence capabilities into a single cohesive 

intelligence enterprise. OIIL supports CBP’s mission through a multi-layered approach that includes collecting and 

analyzing advance traveler and cargo information, using enhanced law enforcement technical collection capabilities, providing timely analysis of intelligence and information, and establishing intelligence-sharing relationships 

with Federal, state, local and tribal agencies and intelligence agencies.

Office of International Affairs (INA): The Office of International Affairs (INA) is responsible for coordinating and supporting CBP’s foreign initiatives, programs and activities. To support CBP’s mission, INA establishes essential partnerships with U.S. government agencies, foreign administrations, and international organizations. Within INA, 

U.S. Government, DHS, and CBP policy are transformed into actionable initiatives. INA supports CBP’s defense 

in-depth strategy by implementing programs and initiatives that promote border enforcement best practices and 

capacity building. INA also negotiates international agreements and works to strengthen multi- and bi-lateral 

relationships that facilitate the flow of legitimate travel and trade. INA’s organizational structure is composed 

of a Headquarters office in Washington, DC; field offices positioned in 25 countries consisting of 21 Attachés 

located in embassies; 4 Advisors located internationally separate from the Attaché offices; and, 1 Advisor located in 

Tampa, Florida.

Office of International Trade (OT): Provides unified strategic direction for trade policy and program development. 

CBP OT directs national enforcement responses and takes punitive actions against companies participating in 

predatory trade practices, including textile transshipment and intellectual property rights infringement. OT directs 

CBP risk-based programs designed to detect and prevent the importation of contaminated agricultural products 

and goods that present health or safety risks, and products requiring protection from unfair trade practices. OT 

streamlines the flow of legitimate shipments and fosters corporate self-governance to achieve compliance with 

trade laws, regulations, and international trade agreements. Finally, OT provides the legal tools to promote facilitation and compliance with customs, trade, and border security requirements by issuing CBP regulations, binding 

rulings and decisions, compliance publications, and offering training and outreach on trade laws and regulations. 

Office of Congressional Affairs (OCA): Coordinates all CBP congressional and legislative activities to ensure that the 

full range of policy, operational, technical, and programmatic aspects are appropriately considered. These functions and activities include, but are not limited to, work performed in the congressional arena, relationships with 

Members of Congress and their staffs, and requests for information, briefings, meetings, hearings, tours, or other 

form of assistance received from Congress.
Management’s Discussion and Analysis 47

Overview of CBP

Office of Administration (OA) and Chief Financial Officer (CFO): Oversees all financial operations, procurement, acquisition, asset management, and budget activities within CBP. OA is responsible for administering $12.4 billion 

that is budgeted annually for law enforcement and trade operations and processing collections of $37.2 billion 

in custodial and entity revenue annually. This office is responsible for administering the broad range of financial 

management activities delineated under the CFO Act of 1990, including accounting, budgeting, procurement, asset 

management, financial systems, and financial management.

Office of Human Resources Management (HRM): Manages a centralized human resources program for all CBP employees nationwide and overseas. HRM supervises all matters involving human resources, including organizational 

structure, staffing, compensation administration, benefits, workplace safety, personnel actions, labor relations, 

and employee relations. HRM also assists employees by providing recruitment services, retention support, benefits 

information, and employee health and wellness programs.

Office of Information and Technology (OIT): Provides CBP with information, services and technology solutions to 

secure the border, prevent the entry of terrorists or terrorist weapons, and facilitate legitimate trade and travel. 

In addition, OIT operates a worldwide, round-the-clock secure, stable, and high-performance Information 

Technology (IT) infrastructure while supporting tactical communications, scientific solutions, and forensic services. OIT implements and supports CBP’s IT, automation, and technology strategies. OIT personnel manage all 

computers and related resources, including all operational aspects of the Computer Security Program. OIT establishes requirements for computer interfaces between CBP and various trade groups and Government agencies, and 

manages matters related to automated import processing and systems development.

Office of Internal Affairs (IA): Serves as the designated Office of Security for CBP and manages a wide range of 

investigative and security functions and programs, including applicant and employee background investigations 

and clearances; employee integrity and misconduct investigations; credibility assessments including polygraph 

examination; operational field testing; integrity awareness and corruption detection; deterrence and prevention 

of internal corruption; physical, informational, operational, industrial and internal security; management inspections; audit liaison; and, monitors cyber security counter intelligence policies, instructions, procedures, control 

systems, networks and methods. IA’s mission is clear and critically important - to promote the integrity and security of the CBP workforce.

Office of Public Affairs (OPA): Communicates CBP’s mission and operations to the agency’s chief stakeholders, which 

includes the American public, foreign nationals who conduct business in the United States, international trade 

entities, and travelers who cross U.S. borders. Tools used in the national and international public communication 

process include media outreach and public information campaigns conducted via media events, video, photography, and informational brochures. CBP maintains a public web site at www.cbp.gov and a national customer service call center, CBP INFO Center, to address public questions and complaints. OPA also keeps the CBP workforce 

informed through the CBPnet Intranet site, the weekly emailed news compilation “Frontline News,” and mass 

emails. A bimonthly newsletter, “CBP Today,” is distributed to CBP personnel and other stakeholders nationwide.
48 U.S. Customs and Border Protection • Performance and Accountability Report

Office of Technology Innovation and Acquisition: Was established in July, 2010, to ensure that all of CBP’s applied technology efforts are properly focused on the mission and are well integrated across the agency. In addition, OTIA 

is charged with strengthening CBP’s expertise and effectiveness in acquisition and program management of contractor-delivered products and services. The new office is headed by an Assistant Commissioner who also serves as 

CBP’s Component Acquisition Executive (CAE), providing oversight to all CBP acquisition programs to ensure they 

are managed in compliance with DHS and CBP regulations and policies.

Office of Training and Development (OTD): Is responsible for the centralized leadership and direction of all CBP training programs for the entire workforce. OTD ensures that all training supports the CBP mission and strategic goals 

and that the workforce is prepared to meet the challenges faced in the performance of mission critical operations 

by establishing CBP training standards and policies, leading the development, delivery and evaluation of training, 

and procuring the necessary tools.

Overview of CBP
Management’s Discussion and Analysis 49

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50 U.S. Customs and Border Protection • Performance and Accountability Report

Overview of CBP
Management’s Discussion and Analysis 51

Overview of CBP
52 U.S. Customs and Border Protection • Performance and Accountability Report

In FY 2011, the CBP Commissioner issued CBP’s Missions, Goals, and Priorities, FY 2011–2013, a document that 

articulates the missions, goals, objectives, and priority initiatives for the agency. The document was designed to 

shape planning and policy development for CBP’s offices, to guide resource allocation, and to provide direction to 

senior executives on where to focus their efforts.

CBP’s Performance Management Framework (PMF) provides CBP with performance management and oversight 

capabilities that improve the efficiency and effectiveness of CBP programs, initiatives, and operations through 

improved measurement, analysis, and reporting. The PMF was designed to meet statutory reporting and budgeting 

requirements established by the Office of Management and Budget, the Government Performance and Results Act 

(GPRA) of 1993, and the GPRA Modernization Act of 2010. The PMF also supports management decision-making 

processes associated with agency-wide strategic planning, requirements determination, and resource allocation 

through the use of performance information in the execution of the annual budget.

The associated CBP Performance Measurement Hierarchy (as follows) contains five levels of performance measures: long-term, strategic, management, operational, and investment measures. The Hierarchy sets the foundation 

for performance measure presentation and reporting through a variety of formats and methods tailored to the 

decision-making processes they intend to serve.

Measures that are multi-year in nature 

and do not tie to our annual budget.

Measures that communicate achievement 

of strategic goals and objectives.

Measures that gauge program results 

and tie to resource requests.

Measures that inform the management 

of operations and activities.

Strategic

Management

Operational

Investment

Long-Term Linkages and Feedback

Measures that gauge program 

management and results 

delivered by capital investments.

Long-term level measures are measures that cross multiple fiscal years and do not tie to the annual budget. 

Strategic level measures manage and report accomplishments of CBP strategic goals and objectives, thus demonstrating the value our programs provide to the American people. Management level measures inform internal 

CBP decision-making processes to determine program priorities, allocate resources, and monitor progress and 

Performance Goals and Results
53

performance. Operational level measures inform management of the effectiveness and efficiency of individual 

program operations. Investment level measures are associated with our major capital investments and map to the 

Federal Enterprise Architecture Performance Reference Model.

Performance Management

CBP’s performance management efforts are guided by key pieces of legislation that provide the framework for 

Government-wide performance improvement. The GPRA of 1993 established a solid foundation for results-oriented planning, measurement, and reporting in the Federal Government. The GPRA Modernization Act of 2010 

sought to further that effort by promoting the consistent use of performance measurement and reporting outcomes to drive management decision-making and resource use. After passage of the GPRA Modernization Act of 

2010, CBP immediately moved forward in incorporating aspects of the legislation into its processes.

CBP uses performance measures to determine if desired results are achieved as an indication of what the agency is 

accomplishing. CBP is dedicated to continuously refining and improving its performance measures. The goal is to 

ensure that the data we report internally and externally are useful to senior executives tasked with making difficult 

programming and funding decisions.

In February 2010, DHS completed the first Quadrennial Homeland Security Review (QHSR) in an effort to provide a strategic framework that guides the activities of participants in homeland security toward a common end. 

In FY 2010, and in concert with DHS, CBP engaged in a review of existing performance measures to ensure that 

the Department can accurately monitor and improve its performance towards meeting the missions, goals and 

objectives outlined in the QHSR. Where gaps existed, new measures were proposed and developed. In FY 2011, 

CBP finalized the development of these new measures and also proposed the development of several additional 

measures.

Furthermore, the strategic goals and objectives in CBP’s Missions, Goals, and Priorities, FY 2011–2013 document 

provided a roadmap of activities for accomplishing the agency’s important mission. Upon its adoption, the agency 

identified several strategic areas that would benefit from new outcome-based performance measures and began the 

process of developing them. By responding to emerging guidance, CBP will demonstrate program effectiveness 

in achieving our long-term performance goals through the continuous improvement of performance measures.

In June of 2009, the Administration launched a new initiative that asked agency leaders to identify and commit to a 

select number of priority goals that are of high value to the public. The intent was for the goals to be accompanied 

by ambitious, but realistic, targets to achieve within two years using existing resources. This concept of establishing High Priority Performance Goals (HPPG) was also formalized in the GPRA Modernization Act of 2010. To 

ensure DHS delivers on its most important priorities, Secretary Napolitano identified a limited number of HPPG. 

These goals focus on executing programs effectively and delivering meaningful performance improvements for 

the American people. Of the DHS high performance priority goals, CBP has remained focused on securing and 

managing our borders through the Western Hemisphere Travel Initiative (WHTI) during FY 2011. As a result of 

Management’s Discussion and Analysis

Performance Goals and Results
54 U.S. Customs and Border Protection • Performance and Accountability Report

the success that WHTI has been able to achieve, the HPPG will be retired and replaced by a new HPPG from CBP’s 

Border Patrol in FY 2012.

The FY 2011 results are below:

CBP High Priority Performance Goal (HPPG) Results – FY 2011 Results

# HPPG PERFORMANCE MEASURE FY 2011 Target FY 2011 End of 

Year Results Status

1 Percent of travelers entering the United States with a secure 

document that establishes identity and citizenship 97.0% 96.2% Not Met

2

Number of travelers who have been issued a 

WHTI-compliant, technologically enhanced secure travel 

documents (RFID enabled)

9,000,000 11,800,00 Met

3 Average privately-owned vehicle processing time at land 

borders (decreasing seconds) 58 58 Met

4 Average pedestrian processing time at land borders 

(decreasing seconds) 22 22 Met

FY 2011 Performance by Mission Set

This section presents a discussion of highlighted FY 2011 performance objectives and related key performance 

measures for each of CBP’s Mission Sets. Additional performance measures and results can be found in the 

“Performance Section” under “Performance Summary,” beginning on page 71.

Mission Set 1: Securing America’s Borders

As a frontline border security agency, CBP has a multifaceted and complex mission of protecting the Nation against 

a multitude of cross-border violations. All CBP efforts to secure the border, including our mission of enforcing the 

immigration, customs, trade, agriculture, and other laws of the United States contribute to the mission of thwarting terrorism.

Performance Objective—Secure the U.S. border in areas deemed as high priority for terrorist threat potential or 

other national security objectives.

CBP will continue its efforts to improve security at and between our POE by using information and intelligence 

to focus resources in a more effective, risk-based manner. Providing security along our northern, southern, and 

coastal borders requires integration with our international, Federal, state, local, and tribal partners in order to 

leverage and focus joint resources.

Performance Goals and Results
55

Performance Measure—Number of apprehensions on the Southwest Border between the ports of entry.

Description

Protection of our southwest border against threats from illicit cross-border activity is a key element 

needed to secure our country. This measure calculates the number of apprehensions made of those 

attempting entry along the southwest border between an official POE. DHS’s border security strategy 

is based on a layered approach of strategically positioning personnel, technology, and defensive 

infrastructure; developing strong partnerships with law enforcement partners on both sides of the 

border; and increasing consequences to repeat offenders to provide a deterrent effect. Collectively, 

these efforts are intended to reduce apprehensions.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A N/A N/A N/A < = 390,000

Actual N/A N/A N/A N/A 327,577

Explanation 

of FY 2011 

Results

Target Met - Border Patrol was successful in meeting its target to reduce apprehensions along the 

southwest border during a time when comprehensive and focused activities by the Border Patrol 

have taken place, especially in the Tucson Sector of Arizona, where apprehensions are highest. 

Measures taken in 2011 that were aimed at decreasing apprehensions included the continuation of the 

operation ACTT and the positioning of 1,000 additional agents along the southwest border.

Recommended 

Action N/A

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

400,000

280,000

320,000

360,000

380,000

300,000

340,000 Target

Actual

Number of Apprehensions on the Southwest Border Between the Ports of Entry

Number of 

Apprehensions

< = 390,000

327,577

Management’s Discussion and Analysis

Performance Goals and Results
56 U.S. Customs and Border Protection • Performance and Accountability Report

Performance Measure—Amount of currency seized on exit from the United States.

Description

This measure provides the total dollar amount of all currency in millions seized during outbound 

inspection of exiting passengers and vehicles, both privately-owned and commercial. The scope 

of this measure covers both the southwest and northern borders and includes all modes of 

transportation (land, air, and sea).

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A N/A N/A N/A 40,000,000

Actual N/A N/A N/A N/A 47,000,000

Explanation 

of FY 2011 

Results

Target Met - This is a new measure for FY 2011. It is based on limited surge activity for Exit/Outbound 

operations at a selected group of ports. This measure provides the total dollar amount of all currency 

seized during outbound inspection of exiting passengers and vehicles, both privately-owned and 

commercial. Outbound currency seizures at the southwest border contributed significantly to the 

result.

Recommended 

Action N/A

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

50 million

35 million

40 million

45 million

Target

Actual

Amount of Currency Seized on Exit from the United States

Amount of 

Currency

40 million

47 million

Performance Goals and Results
57

Mission Set 2: Securing and Expediting the Movement of People and the 

Flow of Goods

In order to meet the twin goals of security and facilitation, CBP will develop and implement programs that 

expedite the processing of people and goods at land border ports, airports, and seaports, while at the same time 

securing the global trade environment and strengthening supply chain security. CBP will focus its resources on 

identifying and responding to high-risk travelers and conveyances. CBP employs a risk-based, layered enforcement 

approach through the use of accurate advance information; the most advanced inspection, screening, and scanning 

technology available; modernized systems for cargo processing; and international and trade compliance partnership programs. Modern trade practices make it essential for CBP to provide risk-based, predictable, transparent, 

and efficient procedures for the clearance of goods, while simultaneously addressing increasingly complex trade 

compliance requirements and evolving security challenges.

Performance Objective—Improve the targeting, screening, and apprehension or seizure of high-risk international 

travelers and cargo away from the physical border in order to prevent terrorist attacks and criminal activity while 

expediting the processing of legitimate travelers and cargo.

CBP’s ability to expedite the processing of people, products, and conveyances is dependent on its ability to identify 

high-risk travelers and goods for inspection. High-risk targeting allows law-abiding travelers and commerce to 

move without unnecessary delay. CBP applies its targeting methods against data to determine which passengers 

or shipments need to be segregated for closer inspections. CBP uses the ATS and associated databases to provide 

CBP officers (including those stationed overseas) with advance notice of travelers and goods arriving at U.S. POEs, 

allowing them to cross-check the passenger and cargo manifests against databases such as TECS and the National 

Crime Information Center.

Management’s Discussion and Analysis

Performance Goals and Results
58 U.S. Customs and Border Protection • Performance and Accountability Report

Performance Measure—Percent of requested cargo examinations conducted at foreign ports of origin in 

cooperation with host nations under the Container Security Initiative.

Description

The measure is an indication of the extent to which potential higher-risk cargo is satisfactorily 

inspected before it leaves the foreign port of origin. This measure is the percent of requested 

container examinations resolved or conducted by foreign Customs officials meeting CBP examination 

standards and requirements divided by the total number of examinations requested by CBP CSI 

officials. These examinations would otherwise have taken place at U.S. POE.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A 97% 97% 95% 100%

Actual N/A 95.10% 93% 94.00% 96.00%

Explanation 

of FY 2011 

Results

Target Not Met - The Container Security Initiative is based on a diplomatic agreement that relies on 

the voluntary cooperation of host nation Customs officials. Examination rates depend on a number 

of factors outside of CBP operational control, including host port logistics, procedures, and installed 

equipment and technology. CBP continually works with the host ports to resolve examination 

issues as they arise. The low rates of completed examinations at the Chinese ports of Shanghai and 

Shenzhen significantly impact the overall rate.

Recommended 

Action

CBP continually works with the host ports to resolve examination issues as they arise. CBP, DHS, and 

DOS are working with Chinese representatives to increase the percentage of conducted examinations.

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target

Actual

Percent of Requested Cargo Examinations Conducted at Foreign Ports of Origin

in Cooperation with Host Nations Under the Container Security Initiative

Percent of 

Requested 

Cargo 

Examination

100%

96%

94%

93%

95.1%

95%

97%

97%

100%

88%

94%

98%

96%

92%

90%

Performance Goals and Results
59

Performance Measure—Percent of cargo by value imported to the United States by participants in CBP trade 

partnership programs

Description

This measure describes the percent of all cargo that is imported from CBP trade partnership 

programs based on the value compared to total value of all imports. Partnership programs include 

both Customs-Trade Partnership Against Terrorism (C-TPAT) and Importer Self Assessment (ISA). 

CBP works with the trade community through these voluntary public private partnership programs, 

wherein some members of the trade community adopt tighter security measures throughout their 

international supply chain and in return are afforded benefits. A variety of trade actors are included 

in these partnership programs, such as importers, carriers, brokers, consolidators/third party logistic 

providers, Marine Port Authority and Terminal Operators, and foreign manufacturers.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A N/A N/A N/A 45%

Actual N/A N/A N/A N/A 55.07%

Explanation 

of FY 2011 

Results

Target Met - Continued outreach activities by OT resulted in a 7% increase in the total number of 

ISA participants.

Recommended 

Action N/A

Target

Actual

Percent of Cargo by Value Imported to the United States by

Participants in CBP Trade Partnership Programs

Percent of 

Cargo by Value 

Imported

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

60%

40%

45%

50%

55%

45%

55.07%

Management’s Discussion and Analysis

Performance Goals and Results
60 U.S. Customs and Border Protection • Performance and Accountability Report

Mission Set 3: Sustaining Investment in People and Capabilities

In order for CBP to remain a successful law enforcement organization, it will invest in its people. This includes 

providing training for CBP agents, officers, and mission support personnel to ensure they are proficient in their 

job-related skills and are prepared for future leadership opportunities. This also includes addressing any integrity 

issues that may arise.

Performance Objective—Improve mission effectiveness and efficiency by integrating, unifying, and leveraging 

resources to support CBP’s operational offices.

Another aspect of CBP investing in its people includes ensuring that its agents and officers on the border have the 

required technology to achieve the organization’s objectives. This includes having the proper technology to communicate with our Mexican, Canadian, Federal, state, local, and tribal partners.

While the activities that fall under this Mission Set are important to CBP’s success, CBP does not have GPRA or 

Strategic measures that align to this Mission Set due to the mission support nature of its activities. Operational 

measures exist within this Mission Set and are used in internal decision-making processes.

Performance Goals and Results
Management’s Discussion and Analysis 61

Overview

To assist with DHS’ compliance with the provisions of the Federal Managers’ Financial Integrity Act of 1982 

(FMFIA); the DHS Financial Accountability Act of 2004; the Reports Consolidation Act of 2000; the Federal 

Financial Management Improvement Act of 1996 (FFMIA); the Federal Information Security Management Act of 

2002 (FISMA); and the Office of Management and Budget (OMB) Circular A-123, “Management’s Responsibility 

for Internal Control,” revised December 2004, the Commissioner of CBP must provide annual assurance statements 

to DHS regarding CBP’s management and financial system controls, internal controls over financial reporting, 

and performance data reliability regarding activity that is significant at the DHS Consolidated level. Any material 

weaknesses or deficiencies are reported in the statements. Information for these statements are derived from the 

Government Accountability Office (GAO) and DHS Office Inspector General (OIG) reviews, independent audits, 

and self-assessments provided by CBP management.

Federal Managers’ Financial Integrity Act

In accordance with FMFIA and OMB Circular A-123, CBP has evaluated its management controls and financial 

management systems for the FY ending September 30, 2011. Through its annual self-assessment process and GAO 

and OIG reviews for FY 2011, we are reporting 1 material weakness and 2 instances of nonconformance.

Custodial Revenue and Drawback Controls

Drawback involves the reimbursement of duties paid by an importer on materials or merchandise imported 

into the United States and subsequently exported. In 1993, deficiencies were reported in the controls to prevent 

excessive drawback claims. CBP’s Automated Commercial System (ACS) has inherent limitations in detecting and 

preventing excessive drawback claims; therefore, CBP relies on a risk-based approach to review drawback claims. 

The strengthening of drawback controls is dependent on legislation to simplify the drawback process and to revise 

document retention requirements for the trade. CBP has recommended changes to the record-keeping requirements; however, support from the trade community is crucial to proposing a statutory change. In addition, weaknesses have been noted and are being addressed in the monitoring of Foreign Trade Zones and Customs bonded 

warehouses, as well as trade compliance measurement and the tracking of In-Bond cargo.

Financial Systems Security

(previously Information Technology General and Application Controls)

DHS requires each component’s Information Technology (IT) systems identified as CFO-Designated Systems 

to comply with the 27 key internal controls detailed in the DHS Management Directive 4300-1, DHS Sensitive 

Systems Policy Directive 4300A, DHS 4300A Sensitive Systems Handbook (SSH), and its Attachment R, Compliance 

Framework for CFO Designated Financial Systems. The DHS OIG has noted that there continues to be IT general 

Management Assurances
62 U.S. Customs and Border Protection • Performance and Accountability Report

and application control weaknesses at CBP. During the FY 2011, 4 prior year IT findings were closed. CBP will work 

to reduce the number of IT findings in FY 2012.

Core Financial Systems

This non-conformance was first reported in 1993 when it was noted that CBP’s core financial systems were not 

integrated and did not provide certain financial information for managing operations. The implementation of 

Systems, Applications, and Products (SAP) Release 3 in 2004 addressed a number of the issues under this weakness. The remaining open issues relate to the accounts receivable functionality that will be provided by a new 

system of record for trade revenue activity and reporting. In addition, the items held in the use, excess, obsolete, 

and unserviceable category in the Computerized Aircraft Reporting and Material Control (CARMAC) System and 

Customs Automated Maintenance and Inventory Tracking System (CAMITS) are not integrated with SAP at the 

transaction level. Reconciliations are performed to ensure accurate reporting.

DHS Financial Accountability Act

The DHS Financial Accountability Act requires an assertion of internal controls over financial reporting. For 

FY 2011, CBP focused on performing verification and validation procedures and tests of operational effectiveness 

over corrective actions taken throughout FY 2011. Areas of corrective actions included:

•	 Financial Reporting – updated policies and procedures, improved agency wide communication, and implemented additional financial statement reviews. Included were improvements to the year-end accounts payable 

accrual process and detailed communication requirement plans for financial statement information. These 

improvements resolved two prior audit findings;

•	 Budgetary Resource Management – updated policies and procedures related to timely review, monitoring, 

and deobligation of undelivered orders, and provided guidance to appropriate supporting documentation. In 

FY 2011, the CBP Procurement Directorate performed an extensive review over obligations completing 1,041 

de-obligation actions totaling $260 million;

•	 Property Management – updated procedures and data systems to address asset addition transactions and 

the use of a holding account for recording certain assets. CBP implemented new policies and procedures for 

identifying percent-of-completion accruals on construction projects, and for transaction review requirements 

related to timely and accurate posting of inventories, capital asset purchases, and disposal. These procedures 

resulted in removing one audit finding relating to air parts inventory and improved audit results relating to 

capitalized property;

•	 Revenue and Receivables Management – CBP is currently reviewing the sampling methodology for 

the Drawback Compliance Measurement Program. CBP is exploring the possibility of using the In-Bond 

Compliance Measurement tool to enhance Headquarters’ monitoring capabilities; and

Management Assurances
Management’s Discussion and Analysis 63

•	 Financial System Security – updated policies and procedures related to Contracting Officer Technical 

Representative duties and explored automated options to complete and maintain the CBP form 241 Employee 

Separation Form.

Based on this assessment, CBP provides reasonable assurance that internal controls over financial reporting were 

operating effectively, with the exception of the material weakness, Custodial Revenue and Drawback Controls, as 

previously discussed. CBP management believes that sufficient compensating controls exist to provide assurance 

on the related financial statements and will continue to test and refine these controls.

Federal Financial Management Improvement Act

FFMIA instructs agencies to maintain an integrated financial management system that complies with Federal 

system requirements, Federal Accounting Standards Advisory Board standards (FASAB), and the U.S. Standard 

General Ledger at the transaction level. Although CBP has made significant improvements toward compliance with 

the implementation of SAP financial software, it cannot claim full compliance because of the deficiencies previously discussed.

Federal Information Security Management Act

FISMA requires agencies to conduct an annual self-assessment review of their IT security programs and to develop 

and implement corrective actions for identified security weaknesses and vulnerabilities. CBP has completed a comprehensive self-assessment for FY 2011 and can state with reasonable assurance that the IT security controls are in 

compliance with FISMA, with the exception of the material weakness previously discussed.

Management Assurances
64 U.S. Customs and Border Protection • Performance and Accountability Report

Overview

Data Integrity: CBP is dedicated to providing clear, concise, relevant, and reliable data for managerial decisionmaking and program management. CBP strives to ensure that the data are both quantifiable and verifiable and 

provided in a timely manner. In place are internal management controls, including ongoing data reviews, annual 

self-inspections, audit trails, restricted access to sensitive data, and separation of duties, which are designed to 

safeguard the integrity and quality of CBP’s data resources.

Data Systems and Controls: Performance data for the planned performance measures are generated by automated 

management information and workload measurement systems and reports as a byproduct of day-to-day operations. All levels of management routinely monitor the data systems and controls. CBP management has reviewed 

the performance measurement data for FY 2011 and has determined, with reasonable assurance, that the data is 

complete, accurate and reliable.

Audit of the FY 2011 CBP Consolidated Financial Statements: To assist the Department in complying with the 

DHS Financial Accountability Act of 2002, the DHS OIG engaged independent auditors, KPMG LLP, to audit CBP’s 

consolidated financial statements (Consolidated Balance Sheets, Consolidated Statements of Net Cost, Consolidated 

Statements of Changes in Net Position, Combined Statements of Budgetary Resources, and Consolidated Statements 

of Custodial Activity), hereinafter referred to as the “financial statements.” The objective of the audit was to determine whether CBP’s financial statements are fairly presented in accordance with Generally Accepted Accounting 

Principles (GAAP) in the United States. The Independent Auditor’s Report can be found on page 137.

Management Inspections

As part of its oversight role to promote the integrity, effectiveness, and efficiency of CBP programs and operations, 

IA, Management Inspections Division (MID), performs management inspections that compliment operational 

monitoring activities performed by CBP component offices. As part of an integrated inspections program, MID 

performs office inspections, program evaluations, contract and other financial reviews, quality assurance and procedural deficiency reviews, follow-up reviews of audit recommendations made by the GAO and the DHS OIG, and 

other analytical assessments of operational or management issues.

MID’s work reflects a proactive approach to identifying areas of potential vulnerability or conditions that could 

hinder the successful accomplishment of CBP operational goals and objectives. During FY 2011, MID issued a total 

of 64 reports, presenting CBP executive managers with 486 recommendations to address operational, financial or 

administrative deficiencies identified during inspection activity.

Systems and Controls
Management’s Discussion and Analysis 65

Self-Inspection Program

The Self-Inspection Program (SIP), administered by the Office of Internal Affairs, MID, is one of a number of 

oversight mechanisms through which CBP monitors agency performance, the adherence to established operational requirements, and the accomplishment of strategic goals and program objectives. SIP promotes management 

accountability and strengthens the oversight of programs and operations. SIP also helps CBP meet federal internal 

controls requirements established by the FMFIA, OMB Circular A-123, and the DHS Financial Accountability Act. 

Under SIP, CBP managers and supervisors annually conduct self-assessment activities requiring them to verify 

that agency programs and operations are being implemented properly and effectively. In conducting the selfassessments, CBP managers report on the implementation of policies and procedures applicable to the operational, 

financial, and administrative functions reviewed through SIP. 

During the SIP cycle, CBP managers complete, certify, and approve the self-inspection worksheets related to the 

functions and activities under their control. Responses indicating compliance and non-compliance with the 

requirements, along with information supporting the responses, are recorded in the web-based Self-Inspection 

Reporting System. Managers reporting non-compliance with, or inconsistent implementation of, policies and procedures are required to timely implement corrective action to resolve each deficient condition. 

On a national level, the analysis of self-inspection results allows executive managers and national program managers to gauge the level of compliance with critical program management controls; identify programmatic issues 

that require national attention; and provide appropriate guidance to CBP offices and managers. For the current 

reporting cycle, more than 2,000 managers in approximately 700 CBP Headquarters and field offices performed 

self-assessment activities researching, certifying, and /or approving the results of office self-inspections. CBP managers completed 15,247 self-inspection worksheets by answering a total of 98,406 questions. 

Audit Management and Liaison

The MID Audit Management and Liaison team serves as the agency liaison to the GAO and the DHS OIG providing oversight concerning audits and reviews of CBP programs and operations. The Audit Management and Liaison 

team facilities meetings between external auditors and CBP personnel ensures timely responses to auditor requests 

for documents and interviews, coordinates CBP responses to audit findings and report, tracks the status of required 

corrective actions, provides agency-wide audit training and keeps senior leadership informed of high-profile audits 

and reviews.

In FY 2011, CBP had 163 ongoing GAO and OIG audits. Of these audits, GAO initiated 42 new audits (57 audits 

were carried over from previous years) and issued 38 reports containing 31 recommendations. DHS OIG initiated 

31 new audits (33 audits were carried over from previous years) and issued 27 reports containing 33 recommendations. As of the end of FY 2011, CBP has 131 open recommendations.

Systems and Controls
66 U.S. Customs and Border Protection • Performance and Accountability Report

Overview

CBP strives to be a leader in financial management by providing high-quality, cost-efficient services through customer involvement and modern, integrated financial systems. CBP’s goal is to continuously develop and implement more effective and efficient methods to obtain, manage, and deliver the financial resources, capital assets, 

and financial services required to meet or exceed the needs of customers and stakeholders. Because CBP is also 

a revenue-collection agency, it is imperative that it accurately identify amounts owed to CBP and efficiently and 

effectively collect, report, and account for revenue.

Providing top-quality financial management services includes translating workloads and requirements into budget 

requests for needed resources; allocating and distributing funds after resources are made available; acquiring and 

distributing goods and services used to accomplish the CBP mission; managing and paying for those goods and 

services; and reporting on the costs and use of personnel, goods, and services.

For FY 2011, SAP financial software continues to be used by CBP. SAP is a modular, PC-based, integrated financial 

management and reporting system that provides full materials management, budgeting, and general and subsidiary ledger capabilities. The impact of SAP is far-reaching, as it has put into place new automated, integrated processes for core finance and accounting, budget execution, and reporting.

Overview of the Financial Statements

The financial statements and footnotes appear in the “Financial Section” of this report on pages 88 through 136. 

The financial statements have been audited by the independent auditor engaged by the DHS OIG, KPMG LLP, who 

determined that the financial statements are fairly presented in accordance with GAAP.

Consolidated Balance Sheet

The Consolidated Balance Sheet presents the property owned by CBP (assets), amounts owed by CBP (liabilities), 

and the amounts of the difference (net position). As of September 30, 2011, total assets were $16.2 billion, a 

1 percent decrease from FY 2010.

Financial Management
67

Fund Balance with Treasury

43%

Other

3%

Duties & Trade 

Receivables

17%

Property, Plant & Equipment

37%

2011 Assets

Fund Balance with Treasury

47%

Other

3%

Duties & Trade 

Receivables

15%

Property, Plant & Equipment

35%

2010 Assets

2011 Liabilities

Accounts Payable

11%

Injured Domestic 

Industries

7%

Payroll & Benefits

24%

Due to the General Fund

43%

Other

13%

Refunds Payable

2%

2010 Liabilities

Accounts Payable

12%

Injured Domestic 

Industries

9%

Payroll & Benefits

24%

Due to the General Fund

40%

Other

13%

Refunds Payable

2%

As of September 30, 2011, total liabilities were $6.5 billion, an increase of 5 percent over FY 2010, which related 

to amounts due to the Treasury General Fund. The assets and liabilities charts present a comparison of the major 

categories as a percentage of the totals for FY 2011 and FY 2010.

Consolidated Statement of Net Cost

The Consolidated Statement of Net Cost presents the net cost of the major CBP programs as they relate to the goals 

of the 2009–2014 Strategic Plan. The gross cost less any offsetting revenue for each program equals net cost of 

operations. Net cost of operations was $12.0 billion.

Financial Management
68 U.S. Customs and Border Protection • Performance and Accountability Report

Facilitation at the Ports of Entry

53%

Border Security 

& Control

40%

Air & Marine Operations

5%

2011 Net Program Costs

Border Security Fencing, 

Infrastructure & Technology

< 1%

Automation 

Modernization

2%

Facilitation at the Ports of Entry

55%

Border Security 

& Control

37%

Air & Marine Operations

5%

2010 Net Program Costs

Border Security Fencing, 

Infrastructure & Technology

1%

Automation 

Modernization

2%

Consolidated Statement of Changes in Net Position

The Consolidated Statement of Changes in Net Position represents those accounting transactions that caused the 

net position of the balance sheet to change from the beginning to the end of the reporting period. CBP’s net cost 

of operations serves to reduce the net position. Appropriations used totaled $8.8 billion, representing 71 percent 

of CBP’s total financing sources. CBP collected and retained $2.6 billion of non-exchange revenue, amounting to 

21 percent of total financing sources, which was used to fund CBP operations.

Combined Statement of Budgetary Resources

The Combined Statement of Budgetary Resources illustrates how budgetary resources were made available, as well 

as their status at the end of FY 2011. CBP had $17.0 billion in budgetary resources, of which $2.3 billion were 

unobligated. CBP incurred obligations of $14.7 billion and recorded $14.5 billion in gross outlays by the end of 

the Fiscal Year.

Consolidated Statement of Custodial Activity

The Consolidated Statement of Custodial Activity presents non-entity (financial activity conducted by CBP on 

behalf of others) revenue and refunds using a modified cash basis. This method reports revenue from cash collections separately from receivable accruals, and cash disbursements are reported separately from payable accruals. 

The custodial revenue, using the modified cash basis, for FY 2011 was $34.2 billion.

Financial Management
69

Duties

86%

User Fees

4%

2011 Custodial Cash Collections

Excise Taxes

9%

Other

1%

Duties

86%

User Fees

4%

2010 Custodial Cash Collections

Excise Taxes

10%

Other

< 1%

Limitations of the Financial Statements

The principal financial statements have been prepared to report the financial position and results of the operations 

of CBP, pursuant to the requirements of 31 U.S.C. 3515(b). While the financial statements have been prepared from 

the books and records of CBP in accordance with GAAP for Federal entities and the formats prescribed by OMB, 

the statements are in addition to the financial reports used to monitor and control budgetary resources, which are 

prepared from the same books and records.

The financial statements should be read with the realization that they are a component of the U.S. Government, a 

sovereign entity.

Financial Management
70 U.S. Customs and Border Protection • Performance and Accountability Report

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Performance Section
72 U.S. Customs and Border Protection • Performance and Accountability Report

Performance Summary

The charts below highlight CBP’s success in achieving FY 2011 performance goals. The performance measures are 

established as an integral part of CBP’s Missions, Goals, and Priorities, FY 2011–2013 document, the QHSR, and the 

DHS Future Years Homeland Security Program (FYHSP). The measurement data is collected through various systems and methods and then entered into the FYHSP System for tracking and compiling for management decisionmaking and year-end reporting.

FY 2011 Performance Summary

Target Not Met

55%

Target Met

45%
73

Performance Summary

CBP Performance Recap

Mission Set Performance Measure

FY 2010 Recap FY 2011 Recap

Target Result Target Result Target 

Achieved?

Improved 

From 

FY 2010?

Securing 

America’s 

Borders

Number of apprehensions on the 

Southwest border between the ports 

of entry.

N/A N/A < = 

390,000 327,577 l

Completion rate of projected deployments 

of Border Patrol agents to the 

Southwest border.

N/A N/A 100% 100% l

Number of joint operations conducted 

along the Southwest border by CBP and 

Mexican law enforcement partners.

N/A N/A 9 12 l

Number of weapons seized on exit from 

the United States. N/A N/A 2,200 1,987 l

Amount of currency seized on exit from 

the United States. N/A N/A 40M 47M l

Percent of detected conventional aircraft 

incursions resolved along all U.S. borders. N/A N/A 100% 95.30% l

Securing and 

Expediting the 

Movement of 

People and the 

Flow of Goods

Compliance rate for C-TPAT1

members with the established C-TPAT1

security Guidelines.

95% 97.80% 100% 95.10% l No

Percent of cargo by value imported to 

the United States by participants in trade 

partnership programs.

N/A N/A 45% 55.07% l

Percent of requested cargo examinations 

conducted at foreign ports of origin in 

cooperation with host nations under CSI2

.

95% 94% 100% 96% l Yes

Percent of revenue directed by trade 

laws, regulations, and agreements 

successfully collected.

N/A N/A 100% 99.12% l

Percent of imports compliant with 

applicable U.S. trade laws. N/A N/A 98% 97.67% l

Sustaining 

Investment in 

People and 

Capabilities

GPRA or Strategic measures do not exist 

within this Mission Set. Operational 

measures exist wihin this Mission Set 

and are used in internal decisionmaking processes.

(1) Customs-Trade Partnership Against Terrorism

(2) Container Security Initiative

l = Target Achieved

l = Target Missed
74 U.S. Customs and Border Protection • Performance and Accountability Report

Security, threat, and risk analyses often necessitate changes in the agency’s focus. CBP performance measures continue to evolve to better reflect operational functions and alignment with critical missions.

For FY 2011, CBP has 11 GPRA performance measures that support CBP’s Missions, Goals, and Priorities. Of the 

11 performance measures, 5 were met and 6 were not met. The performance data presented in this report is in 

accordance with the guidance provided by OMB. The data integrity discussion in the “Systems and Controls” section of the “Management’s Discussion and Analysis” (page 64) describes CBP’s commitment to providing quality 

and timely performance information to increase its value to CBP management and interested parties. CBP managers routinely use this data to improve the quality of program management and demonstrate accountability of 

program results.

Individual Performance Measure Results

This section describes CBP’s FY 2011 results for each GPRA performance measure by the CBP Mission Set and 

performance objective they support. Although some of the performance measures may relate to more than one 

performance objective, each performance measure was aligned under the single objective considered most relevant 

or meaningful. Discussions of the key performance measures can be found in the “Management’s Discussion and 

Analysis” section under “Performance Goals and Results,” beginning on page 52.

Mission Set 1: Securing America’s Borders

Performance Objective—Secure the U.S. border in areas deemed as high priority for terrorist threat potential or 

other national security objectives.

The measures aligned to this Mission Set are focused on showing CBP’s effectiveness in securing the border and 

achieving the Mission Set’s performance objective. For example, there is a correlation between the “Number of 

apprehensions on the southwest border between the POE” and the “Number of unlawful migrants attempting to 

cross the southwest border.” By effectively utilizing a combination of additional personnel, technology, and infrastructure, delivering appropriate consequences to repeat offenders, and leveraging partnerships, CBP can decrease 

the “Number of apprehensions on the southwest border between the POE” and ultimately decrease the “Number 

of unlawful migrants attempting to cross the southwest border” as a result of deterrence. CBP is also screening 

southbound rail and vehicle traffic for the illegal weapons and cash that are helping fuel the cartel violence in 

Mexico. The “Amount of currency seized on exit from the United States” and the “Number of weapons seized on 

exit from the United States” show the results of CBP’s efforts in this area.

Performance Summary
75

Performance Measure—Number of apprehensions on the southwest border between the ports of entry.

Explanation 

of FY 2011 

Results

Target Met—See page 55 for results and detailed discussion.

Performance Measure—Completion rate of projected deployments of Border Patrol agents to the 

southwest border.

Description

This measure assesses Border Patrols effectiveness at strategically deploying additional agents to areas 

that currently have the highest illegal alien activity in a timely manner between the ports of entry to 

reduce the illicit trafficking of people, drugs, currency, and weapons in the areas of greatest need.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A N/A N/A N/A 100%

Actual N/A N/A N/A N/A 100%

Explanation 

of FY 2011 

Results

Target Met—U.S. Border Patrol was able to successfully fill all of the 1,000 supplemental positions 

identified in the FY 2010 Emergency Supplemental Appropriation to increase security along the 

Southwest Border and establish a mobile response team.

Target

Actual

Completion Rate of Projected Deployments of Border Patrol Agents 

to the Southwest Border

Percent 

of Agents 

Deployed to 

SW Border

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

100%

80%

85%

90%

95%

100%

100%

Performance Summary
76 U.S. Customs and Border Protection • Performance and Accountability Report

Performance Measure—Number of joint operations conducted along the southwest border by CBP and 

Mexican law enforcement partners.

Description

Bi-lateral law enforcement efforts between CBP and our Mexican partners at local, state, and Federal 

levels are essential for having a secure border that allows for legal trade and travel, and addresses 

threats in the border area, including border violence and illicit activity caused by drug cartels and 

smugglers of people, narcotics, and other contraband. This measure tracks the number of joint 

operations that include GOM law enforcement agencies as partners formalized by operations orders 

that define levels of participation and dedication of resources.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A N/A N/A N/A 9

Actual N/A N/A N/A N/A 12

Explanation 

of FY 2011 

Results

Target Met—CBP/U.S. Border Patrol conducted twelve (12) joint operations along the Southwest 

Border with Mexican law enforcement partners that were formalized by operations orders in the 

Border Patrol Enforcement Tracking System (BPETS) for FY 2011. Southwest Border Sectors and their 

respective International Liaison Units continue to collaborate with various GOM entities every day. 

Not all efforts warrant an operations order yet the partnerships at the local level yield countless 

accomplishments which fortify the bonds established by the men and women of CBP. Bi-lateral law 

enforcement efforts between CBP/Border Patrol and Mexican law enforcement partners at local, state, 

and Federal levels enhance the ability to ensure legal trade and travel, while mitigating cross-border 

security threats, including illicit activity by smuggling cartels and others who would do harm to our 

Nation. This measure tracked, by fiscal year and quarter, the number of active joint operations that 

are formalized by operations orders which defined levels of participation and dedication of resources.

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

14

0

4

8

12

10

2

6

Target

Actual

Number of Joint Operations Conducted Along the Southwest Border 

by CBP and Mexican Law Enforcement Partners

Number 

of Joint 

Operations 

Conducted

9

12

Performance Summary
77

Performance Measure—Amount of currency seized on exit from the United States.

Explanation 

of FY 2011 

Results

Target Met—See page 56 for results and detailed discussion.

Performance Measure—Number of weapons seized on exit from the United States.

Description This measure provides the total number of illegal weapons seized during outbound inspection of 

exiting passengers and vehicles, both privately-owned and commercial.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A N/A N/A N/A 2,200

Actual N/A N/A N/A N/A 1,987

Explanation 

of FY 2011 

Results

Target Not Met—Outbound weapons seizures vary substantially in size (number of weapons) 

and large weapons seizures are a relatively infrequent event. A downturn in the number of large 

weapons seizures in FY 2011 as compared to FY 2010, particularly during the second half of the year, 

significantly impacted the cumulative total number of weapons seized for the year. The increased 

deployment and use of hand-held LPR may have also contributed to this reduction.

Recommended 

Action

CBP will continue to conduct surge-type Outbound enforcement operations to identify and 

seize weapons being transported out of the country illegally. CBP will work with other law 

enforcement agencies and both local and international partners to identify and disrupt outbound 

smuggling activities. 

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

2,300

1,800

2,000

2,200

2,100

1,900

Target

Actual

Number of Weapons Seized on Exit from the United States

Number of 

Weapons 

Seized

2,200

1,987

Performance Summary
78 U.S. Customs and Border Protection • Performance and Accountability Report

Performance Measure—Percent of detected conventional aircraft incursions resolved along all borders of 

the United States.

Description

The measure represents the percent of conventional aircraft—once detected visually or by radar—

that are suspected of illegal cross-border activity and are brought to a successful law enforcement 

resolution. In some cases, OAM assets are launched to interdict the aircraft. In most cases, resolution 

of the aircraft identity is made by the Air and Marine Operations Center (AMOC) working 

with interagency partners such as the Federal Aviation Administration (FAA). If legal, OAM has 

accomplished its goal to resolve the incursion. If not resolved, AMOC—working with our partners 

including OAM assets—could not identify the target and is thus considered illegal.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A N/A N/A N/A 100%

Actual N/A N/A N/A N/A 95.3%

Explanation 

of FY 2011 

Results

Target Not Met—There were 236 conventional aircraft detected and originally classified as border 

incursions. 225 incursions were resolved and deemed legal. Eleven incursions were not identified and 

were considered illegal as a result.

Recommended 

Action

OAM will evaluate and improve tactics, techniques, and procedures where possible in order to bring 

individuals that commit illegal incursions to a successful law enforcement resolution.

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

100%

0%

40%

80%

60%

20%

Target

Actual

Percent of Detected Conventional Aircraft Incursions Resolved 

Along All Borders of the United States

Percent of 

Detected 

Incursions 

Resolved

100%

95.3%

Performance Summary
79

Mission Set 2: Securing and Expediting the Movement of People and the 

Flow of Goods

Performance Objective—Improve the targeting, screening, and apprehension or seizure of high-risk international 

travelers and cargo away from the physical border in order to prevent terrorist attacks and criminal activity while 

expediting the processing of legitimate travelers and cargo.

The measures aligned to this Mission Set are focused on showing CBP’s effectiveness in preventing terrorist attacks 

and criminal activity while expediting the flow of people and goods. In order to achieve the performance objective, CBP has established several programs and initiatives. Established in 2001, C-TPAT is a voluntary Governmentbusiness initiative to build cooperative relationships that strengthen and improve overall international supply chain 

and U.S. border security. By C-TPAT members complying with established security standards, CBP can expedite 

members’ shipments and focus on screening high-risk cargo. The “Compliance rate for Customs-Trade Partnership 

Against Terrorism (C-TPAT) members with the established C-TPAT security guidelines” shows the percent of 

C-TPAT members that were in compliance with the established security standards during their periodic validation. CBP has also established the CSI, which is intended to prevent and deter terrorist use of maritime containers 

while facilitating the movement of legitimate trade. CSI Officers at the foreign ports identify containers that pose 

a potential threat for terrorism. Once identified, CSI host Government officers examine those containers identified 

as posing a potential risk at the foreign ports while our CBP Officers observe. CSI allows the removal or mitigation 

of high-risk cargo from the supply chain prior to it entering the United States and decreases the associated costs 

to the United States by partnering with host Nations. The “Percent of requested cargo examinations conducted at 

foreign ports of origin in cooperation with host Nations under the Container Security Initiative” demonstrates the 

success CBP has had in mitigating potential threats away from the physical border of the United States. In addition, CBP has established revenue collection as a Priority Trade Issue (PTI). CBP collects over $30 billion annually, 

the second largest revenue generator for the U.S. Government. To avoid the full payment of lawfully owed duties 

and fees to the U.S. Government, importers are prone to use a variety of circumvention schemes. The “Percent of 

revenue directed by trade laws, regulations, and agreements successfully collected” shows how effective CBP was 

in the past year in collecting the revenue that was due to the United States.

Performance Summary
80 U.S. Customs and Border Protection • Performance and Accountability Report

Performance Measure—Compliance rate for Customs-Trade Partnership Against Terrorism (C-TPAT) members 

with the established C-TPAT security guidelines.

Description

This measure provides the overall compliance rate achieved for all validations performed during 

the Fiscal Year. After acceptance into the Customs-Trade Partnership Against Terrorism (C-TPAT) 

program, all C-TPAT members must undergo a periodic validation in which CBP examiners visit 

company locations and verify compliance with an industry-specific set of CBP security standards and 

required security practices. These validations are prepared using a weighted scoring system that is 

used to develop an overall compliance rate for each company. Compliance with security guidelines 

enhances the security of cargo shipped to the United States.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target 95.0% 95.5% 99.0% 95.0% 100.0%

Actual 98.0% 99.9% 97.5% 97.8% 95.1%

Explanation 

of FY 2011 

Results

Target Not Met—The C-TPAT compliance rate for members with established C-TPAT security criteria 

decreased during FY 2011 as the program strengthened its validation process, which increased the 

number of companies suspended or removed following a validation. New suspension and removal 

guidelines following a validation were implemented and management oversight was increased and 

applied consistently at all levels.

Recommended 

Action

C-TPAT partners include the largest companies in the country and the world, which have very large 

and complex production and shipping operations. Over the past two years, the C-TPAT security 

criteria were revised and strengthened considerably, which resulted in a significantly larger number 

of negative validation findings. C-TPAT is working with partner companies to explain the enhanced 

security criteria and ensure they understand the validation requirements.

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

100.0%

90.0%

94.0%

98.0%

96.0%

92.0%

Target

Actual

Compliance Rate for Customs-Trade Partnership Against Terrorism (C-TPAT) Members

with the Established C-TPAT Security Guidelines

Compliance 

Rate for 

C-TPAT 

Members

100.0%

95.1%

97.8% 97.5%

99.9%

98.0%

95.0%

99.0%

95.5%

95.0%

Performance Summary
81

Performance Measure—Percent of requested cargo examinations conducted at foreign ports of origin in 

cooperation with host nations under the Container Security Initiative.

Explanation 

of FY 2011 

Results

Target Not Met—See page 58 for results and detailed discussion.

Performance Measure—Percent of cargo by value imported to the United States by participants in CBP trade 

partnership programs.

Explanation 

of FY 2011 

Results

Target Met—See page 59 for results and detailed discussion.

Performance Measure—Percent of revenue directed by trade laws, regulations, and agreements 

successfully collected.

Description

This measure estimates the collected duties expressed as a percent of all collectable revenue due from 

commercial imports to the United States directed by trade laws, regulations, and agreements. The 

total collectable revenue is defined as total collection plus the estimated net under-collection (also 

called revenue gap or loss) due to non-compliance with U.S. trade laws and regulations. The revenue 

gap is a calculation of uncollected duties based on statistical sampling, expressed as both a dollar 

estimate and a percent of under-collections.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A N/A N/A N/A 100%

Actual N/A N/A N/A N/A (Est.) 99.12%

Explanation 

of FY 2011 

Results

Target Not Met—Statistics are preliminary. Final statistics will be available by the end of February, 

2012. OT will align targeting efforts for identified High Risk areas that are contributing to the 

revenue short-fall.

Recommended 

Action

OT will consider referring highly non-compliant importers to the National Targeting Center and/or 

Regulatory Audit Division for further review.

Performance Summary
82 U.S. Customs and Border Protection • Performance and Accountability Report

Target

Actual

Percent of Revenue Directed by Trade Laws, Regulations, and Agreements 

Successfully Collected

Percent of 

Revenue 

Successfully 

Collected

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

100%

80%

85%

90%

95%

100%

99.12%

Performance Measure—Percent of imports compliant with applicable U.S. trade laws.

Description This measure reports the percent of imports that are compliant with U.S. trade laws including 

customs revenue laws.

Key Highlights

Fiscal Year FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Target N/A N/A N/A N/A 98%

Actual N/A N/A N/A N/A (Est.) 97.67%

Explanation 

of FY 2011 

Results

Target Not Met—Statistics are preliminary. Final statistics will available by the end of February, 2012. 

OT will align targeting efforts for identified High Risk areas that are contributing to the lower 

compliance rate.

Recommended 

Action

Office of Trade will consider referring highly non-compliant importers to the National Targeting 

Center and/or Regulatory Audit Division for further review.

Performance Summary
83

Target

Actual

Percent of Imports Compliant with Applicable U.S. Trade Laws

Percent of 

Imports 

Compliant

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

100.00%

80.00%

85.00%

90.00%

95.00%

98.00%

97.67%

Mission Set 3: Sustaining Investment in People and Capabilities

Performance Objective—Improve mission effectiveness and efficiency by integrating, unifying, and leveraging 

resources to support CBP’s operational offices.

While the activities that fall under this Mission Set are important to CBP’s success, CBP does not have GPRA or 

Strategic measures that align to this Mission Set due to the mission support nature of its activities. Operational 

measures exist within this Mission Set and are used in internal decision-making processes.

Performance Summary
84 U.S. Customs and Border Protection • Performance and Accountability Report

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Financial Section
86 U.S. Customs and Border Protection • Performance and Accountability Report

Few missions in the United States Federal Government are more important than 

U.S. Customs and Border Protection’s (CBP), as the men and women of CBP work 

continuously to protect our nation from dangerous people and dangerous goods 

that would cause harm to our way of life. The Office of Administration stands 

with other offices in CBP to help accomplish the agency’s mission by providing the 

resources and facilities necessary to ensure mission success. CBP is charged with 

the dual mission of protecting our nation’s borders, while facilitating legitimate 

trade and travel. We balance this responsibility with an effective management 

infrastructure that fosters the highest standards of integrity, while also maximizing our partnerships at home and abroad.

The purpose of this report is to update you on the financial performance of our Agency, and on our stewardship 

of CBP’s resources through the integration of mission accomplishments.

I can provide reasonable assurance that the objectives of Section 2 (Management Controls) and Section 4 (Financial 

Management Systems) of the Federal Managers’ Financial Integrity Act have been achieved. We also have room 

for improvement. We are correcting issues identified by internal management evaluations in support of CBP’s 

Management Assurances, as well as auditor-identified weaknesses in internal controls. Recurring issues in custodial revenue management need to be resolved and emerging challenges, such as managing and accounting 

for more complex property, plant, and equipment, must be addressed in the upcoming year. CBP is committed 

to addressing all of our financial management challenges by continuing to implement corrective measures that 

improve our oversight and accountability.

We are accountable to Congress and the American taxpayer to explain how we use the money appropriated to us. 

As part of our responsibilities, we have collected $37.2 billion in revenue, and we must be sound custodians of this 

revenue. Our responsibilities are substantial, and our budget is finite. Consequently, we must have sound financial 

management to provide informed decision making in order to make the best use of our resources.

A benchmark of financial management success is to obtain an audit opinion from a third party that concludes 

that our financial statements are fairly presented and conform to generally accepted accounting principles. Once 

again, CBP has received such an opinion for Fiscal Year 2011—an unqualified opinion—on its full set of financial 

statements. The unqualified opinion on our financial statements is another positive reflection that CBP continues 

to demonstrate discipline and accountability in the execution of our fiscal stewardship responsibilities.

Message from the Chief Financial Officer
87

Solid financial management relies on several critical elements, most notably a capable workforce guided by tested 

practices and processes and supported by sound financial management systems. We have a solid foundation in each 

of these areas and continue to build upon them each year.

While processes and systems are important, CBP and the Office of Administration rely on our employees first and 

foremost to get the job done. I would like to thank the men and women of this organization for the hard work 

they do every day. Due to these efforts, we continue to grow, improve, and remain successful in the face of our 

collective challenge. Our goals remain to provide timely, reliable, and useful financial management information 

to Congress and the American public and to enable the managers across CBP to make smart business decisions.

Deborah J. Schilling, Chief Financial Officer

U.S. Customs and Border Protection

Message from the Chief Financial Officer

Financial Section
88 U.S. Customs and Border Protection • Performance and Accountability Report

Financial Statements

Introduction

The financial statements have been audited by the independent auditor engaged by the DHS OIG, KPMG LLP, who 

determined that the financial statements are fairly presented in accordance with GAAP.

•	 The Consolidated Balance Sheets present the property owned by CBP (assets), amounts owed by CBP (liabilities), and the amounts of the difference (net position).

•	 The Consolidated Statements of Net Cost present the net cost of the major CBP programs as they relate to the 

goals of the 2009–2014 Strategic Plan.

•	 The Consolidated Statements of Changes in Net Position represent those accounting transactions that caused 

the net position of the balance sheet to change from the beginning to the end of the reporting period. CBP’s 

net cost of operations serves to reduce the net position.

•	 The Combined Statements of Budgetary Resources illustrate how and in what amounts budgetary resources 

were made available, as well as their status at the end of FY 2011.

•	 The Consolidated Statements of Custodial Activity present non-entity (financial activity conducted by CBP 

on behalf of others) revenue and refunds using a modified cash basis.
89

Financial Statements

Financial Section

U.S. Customs and Border Protection

Consolidated Balance Sheets

As of September 30, 2011 and 2010

(in Thousands)

2011 2010

ASSETS (Note 2) 

Intra-governmental:

Fund Balance with Treasury (Note 3) $ 6,991,419 $ 7,686,586

Accounts Receivable 14,519 14,523

Advances and Prepayments (Note 11) 155,073 235,285

Total Intra-governmental 7,161,011 7,936,394

Cash and Other Monetary Assets (Note 4) 4,172 3,362

Accounts Receivable, Net (Note 5) 142,977 153,971

Taxes, Duties and Trade Receivables, Net (Note 6) 2,731,765 2,458,647

Inventory and Related Property, Net (Note 7) 171,785 159,021

General Property, Plant and Equipment, Net (Note 9) 6,022,928 5,681,454

Advances and Prepayments (Note 11) 79 108

TOTAL ASSETS $ 16,234,717 $ 16,392,957

Stewardship PP&E (Note 10)

LIABILITIES (Note 12)

Intra-governmental:

Accounts Payable $ 299,955 $ 319,445

Other

Due to the Treasury General Fund 2,817,065 2,462,178

Accrued FECA Liability (Note 12) 147,352 148,988

Other Employment Liabilities (Note 12) 2,076 5,588

Employee Benefits and Taxes 110,827 95,593

Advances From Others 8,531 22,368

Total Intra-governmental 3,385,806 3,054,160

Accounts Payable 388,033 440,601

Environmental & Disposal Liabilities (Note 12 and 14) 16,472 15,667

Other

Accrued Payroll and Benefits (Note 13) 1,572,106 1,462,235

Refunds Payable (Note 15) 131,413 129,147

Injured Domestic Industries (Note 15) 431,545 546,916

Liabilities for Deposit Accounts & Antidumping/Countervailing Duties 155,667 132,108

Legal Contingent Liabilities (Note 17) 386,266 380,984

TOTAL LIABILITIES $ 6,467,308 $ 6,161,818

Commitments and Contingencies (Note 17)

NET POSITION:

Unexpended Appropriations 4,253,612 5,104,867

Cumulative Results of Operations – Earmarked Funds (Note 18) 1,000,085 890,204

Cumulative Results of Operations – Other Funds 4,513,712 4,236,068

TOTAL NET POSITION $ 9,767,409 $ 10,231,139

TOTAL LIABILITIES AND NET POSITION $ 16,234,717 $ 16,392,957 

The accompanying notes are an integral part of these financial statements.
90 U.S. Customs and Border Protection • Performance and Accountability Report

Financial Statements

U.S. Customs and Border Protection

Consolidated Statements of Net Cost

For the Years Ended September 30, 2011 and 2010

(in Thousands)

2011 2010

Office of Field Operations Border Security Inspections and 

Trade Facilitation at Ports of Entry 

Gross Cost $ 6,519,881 $ 6,571,040

Less: Earned Revenue 155,789 166,062

Net Program Costs 6,364,092 6,404,978

Border Security and Control Between Ports of Entry

Gross Cost 4,887,323 4,478,145

Less: Earned Revenue 116,780 113,171

Net Program Costs 4,770,543 4,364,974

Border Security Fencing, Infrastructure and Technology

Gross Cost 91,204 128,998

Less: Earned Revenue 2,179 3,260

Net Program Costs 89,025 125,738

Automation Modernization

Gross Cost 218,644 267,640

Less: Earned Revenue 5,224 6,764

Net Program Costs 213,420 260,876

Air and Marine Operations

Gross Cost 607,865 610,026

Less: Earned Revenue 14,524 15,417

Net Program Costs 593,341 594,609

Total Gross Cost 12,324,917 12,055,849

Less: Total Earned Revenue 294,496 304,674

Net Cost of Operations (Notes 19 and 20) $ 12,030,421 $ 11,751,175

The accompanying notes are an integral part of these financial statements.
91

Financial Statements

Financial Section

The accompanying notes are an integral part of these financial statements.

U.S. Customs and Border Protection

Consolidated Statement of Changes In Net Position

For the Year Ended September 30, 2011

(in Thousands)

FY 2011

Earmarked Funds All Other Funds Consolidated 

Total

Cumulative Results of Operations:

Beginning Balances $ 890,204 $ 4,236,068 $ 5,126,272

Budgetary Financing Sources:

Appropriations Used -- 8,825,940 8,825,940

Non-exchange Revenue (Note 21) 497,951 7,730 505,681

Transfers In/Out Without Reimbursement (Note 21) (1,666,692) 1,864,347 197,655

Other Financing Sources (Non-Exchange):

Transfers In/Out Without Reimbursement -- 40,556 40,556

Imputed Financing -- 710,128 710,128

Other (Note 21) 2,208,076 (70,090) 2,137,986

Total Financing Sources 1,039,335 11,378,611 12,417,946

Net Cost of Operations (929,454) (11,100,967) (12,030,421)

Net Change 109,881 277,644 387,525

Cumulative Results of Operations $ 1,000,085 $ 4,513,712 $ 5,513,797

Unexpended Appropriations:

Beginning Balance $ -- $ 5,104,867 $ 5,104,867

Budgetary Financing Sources:

Appropriations Received (Note 23) -- 8,341,154 8,341,154

Appropriations Transferred In/Out -- 6,196 6,196

Other Adjustments -- (372,665) (372,665)

Appropriations Used -- (8,825,940) (8,825,940)

Total Budgetary Financing Sources -- (851,255) (851,255)

Total Unexpended Appropriations $ -- $ 4,253,612 $ 4,253,612

Net Position $ 1,000,085 $ 8,767,324 $ 9,767,409
92 U.S. Customs and Border Protection • Performance and Accountability Report

Financial Statements

U.S. Customs and Border Protection

Consolidated Statement of Changes In Net Position

For the Year Ended September 30, 2010

(in Thousands)

FY 2010

Earmarked Funds All Other Funds Consolidated 

Total

Cumulative Results of Operations:

Beginning Balances $ 992,257 $ 4,143,883 $ 5,136,140

Budgetary Financing Sources:

Appropriations Used -- 8,521,334 8,521,334

Non-exchange Revenue (Note 21) 420,492 5,332 425,824

Transfers In/Out Without Reimbursement (Note 21) (1,493,361) 1,692,574 199,213

Other Financing Sources (Non-Exchange):

Donations and Forfeitures of Property -- 3,366 3,366

Transfers In/Out Without Reimbursement -- 75,242 75,242

Imputed Financing -- 570,393 570,393

Other (Note 21) 2,003,593 (57,658) 1,945,935

Total Financing Sources 930,724 10,810,583 11,741,307

Net Cost of Operations (1,032,777) (10,718,398) (11,751,175)

Net Change (102,053) 92,185 (9,868)

Cumulative Results of Operations $ 890,204 $ 4,236,068 $ 5,126,272

Unexpended Appropriations:

Beginning Balance $ -- $ 4,748,349 $ 4,748,349

Budgetary Financing Sources:

Appropriations Received (Note 23) -- 9,046,183 9,046,183

Appropriations Transferred In/Out -- (9,733) (9,733)

Other Adjustments -- (158,598) (158,598)

Appropriations Used -- (8,521,334) (8,521,334)

Total Budgetary Financing Sources -- 356,518 356,518

Total Unexpended Appropriations $ -- $ 5,104,867 $ 5,104,867

Net Position $ 890,204 $ 9,340,935 $ 10,231,139

The accompanying notes are an integral part of these financial statements.
93

Financial Statements

Financial Section

U.S. Customs and Border Protection

Combined Statements of Budgetary Resources

For the Years Ended September 30, 2011 and 2010

(in Thousands)

2011 2010

Budgetary Resources:

Unobligated Balance, Brought Forward, October 1: $ 2,646,476 $ 3,065,976

Recoveries of Prior Year Unpaid Obligations 607,416 458,013

Budget Authority

Appropriation (Note 23) 12,424,421 12,943,996

Spending Authority from Offsetting Collections

Earned

Collected 1,464,638 1,586,308

Change in Receivables from Federal Sources 1,156 (20,893)

Change in Unfilled Customer Orders

Advance Received (697) 1,054

Without Advance from Federal Sources (9,548) (6,794)

Expenditure Transfers from Trust Funds 3,226 3,226

Subtotal 13,883,196 14,506,897

Nonexpenditure Transfers, Net 319,980 296,570

Temporarily Not Available Pursuant to Public Law (3,110) --

Permanently Not Available (457,270) (536,441)

Total Budgetary Resources $ 16,996,688 $ 17,791,015

Status of Budgetary Resources:

Obligations Incurred: (Note 22)

Direct $ 13,240,031 $ 13,554,026

Reimbursable 1,488,285 1,590,513

Subtotal 14,728,316 15,144,539

Unobligated Balance:

Apportioned 3,190 63,547

Unobligated Balance Not Available 2,265,182 2,582,929

Total Status of Budgetary Resources $ 16,996,688 $ 17,791,015

Change in Obligated Balances:

Obligated Balance, Net

Unpaid Obligations, Brought Forward, October 1 $ 5,061,440 $ 4,569,207

Uncollected Customer Payments from Federal Sources, 

Brought Forward, October 1 (172,288) (199,975)

Total Unpaid Obligated Balance, Net 4,889,152 4,369,232

Obligations Incurred, Net 14,728,316 15,144,539

Gross Outlays (14,469,173) (14,194,293)

Recoveries of Prior Year Unpaid Obligations, Actual (607,416) (458,013)

Change in Uncollected Customer Payments from Federal Sources 8,392 27,687

Obligated Balance, Net, End of Period

Unpaid Obligations 4,713,167 5,061,440

Uncollected Customer Payments from Federal Sources (163,896) (172,288)

Total, Unpaid Obligated Balance, Net, End of Period 4,549,271 4,889,152

Net Outlays:

Gross Outlays 14,469,173 14,194,293

Offsetting Collections (1,467,167) (1,590,588)

Distributed Offsetting Receipts (2,764,695) (2,468,799)

Total Net Outlays $ 10,237,311 $ 10,134,906

The accompanying notes are an integral part of these financial statements.
94 U.S. Customs and Border Protection • Performance and Accountability Report

U.S. Customs and Border Protection

Consolidated Statements of Custodial Activity

For the Years Ended September 30, 2011 and 2010

(in Thousands)

2011 2010

Revenue Activity (Note 27):

Sources of Cash Collections:

Duties $ 29,253,905 $ 25,283,569

User Fees 1,513,925 1,263,574

Excise Taxes 2,893,631 2,879,796

Fines and Penalties 62,163 61,811

Interest 48,540 5,487

Miscellaneous 114,375 14,397

Total Cash Collections 33,886,539 29,508,634

Accrual Adjustments (+/-) 351,197 637,407

Total Custodial Revenue $ 34,237,736 $ 30,146,041

Disposition of Collections:

Transferred to Others:

Treasury General Fund Accounts $ 22,468,065 $ 19,714,470 

U.S. Department of Agriculture 9,869,544 8,490,353

Other Federal Agencies 28,359 27,215

Government of Puerto Rico 7,369 --

Government of the U.S. Virgin Islands 1,946 466

Non-federal Other 111,370 4,563

(Increase)/Decrease in Amounts Yet to be Transferred 403,455 629,369

Refunds and Drawbacks (Note 27) 1,347,628 1,279,605

Total Disposition of Collections $ 34,237,736 $ 30,146,041

Net Custodial Activity $ -- $ --

The accompanying notes are an integral part of these financial statements.

Financial Statements
Financial Section 95

1. Significant Accounting Policies

Reporting Entity

U.S. Customs and Border Protection (CBP) was created on March 1, 2003, and is a component of the U.S. Department 

of Homeland Security (DHS). CBP is the unified border agency whose priority mission is the prevention of terrorists and terrorists’ weapons from entering the United States. In addition to its priority mission, CBP works to protect America and its citizens by carrying out its traditional missions more effectively using innovative approaches. 

These traditional missions include enforcing United States trade, immigration and other laws at the borders. 

Trade-related mission activities include protecting American businesses from theft of their intellectual property 

and unfair trade practices; regulating and facilitating international trade; collecting import duties; enforcing trade 

laws related to admissibility; regulating trade practices to collect the appropriate revenue; and maintaining export 

controls. Other traditional missions include controlling the borders by apprehending individuals attempting to 

enter the United States illegally; stemming the flow of illegal drugs and other contraband; protecting agriculture 

and economic interests from harmful pests and diseases; processing all people, vehicles and cargo entering the 

United States; and coordinating with the Department of Defense and others to protect the National Capital Region.

Substantially all duty, tax, and fee revenues collected by CBP are remitted to various general fund accounts maintained by the U.S. Department of the Treasury (Treasury) and U.S. Department of Agriculture. Treasury further 

distributes these revenues to other Federal agencies in accordance with various laws and regulations. CBP transfers 

the remaining revenue (generally less than 1 percent of revenues collected) directly to other Federal agencies, the 

Government of Puerto Rico and the U.S. Virgin Islands. Refunds of revenues collected from import/export activity are recorded in separate accounts established for this purpose and are funded through a permanent indefinite 

appropriation. These activities reflect the non-entity or custodial responsibilities that CBP, as an agency of the 

Federal Government, has been authorized by law to enforce.

During Fiscal Year (FY) 2009, CBP received funding under the American Recovery and Reinvestment Act. This 

funding was available for obligation during FY 2009 and FY 2010. This funding was for the procurement and 

deployment of non-intrusive inspection systems, tactical communications equipment and radios; expedited development and deployment of border security technology on the Southwest border; and for planning, management, 

design, alteration and construction of CBP owned land border ports of entry.

Basis of Accounting and Presentation

These financial statements have been prepared from CBP accounting records in conformity with generally 

accepted accounting principles (GAAP). The Federal Accounting Standards Advisory Board (FASAB), which was 

designated the official accounting standard-setting body of the Federal Government by the American Institute 

of Certified Public Accountants, is responsible for identifying the GAAP hierarchy for Federal reporting entities. 

FASAB has identified the hierarchy to be used in Statement of Federal Financial Accounting Standards (SFFAS) 34, 

Notes to Financial Statements
96 U.S. Customs and Border Protection • Performance and Accountability Report

The Hierarchy of Generally Accepted Accounting Principles, Including the Application of Standards Issued by the Financial 

Accounting Standards Board.

The statements consist of the Consolidated Balance Sheet, Consolidated Statement of Net Cost, Consolidated 

Statement of Changes in Net Position, Combined Statement of Budgetary Resources, and Consolidated Statement 

of Custodial Activity. All statements are prepared in accordance with Office of Management and Budget (OMB) 

Circular A-136.

These financial statements should be read with the understanding that CBP is a component of a sovereign entity; 

for which budgetary resources cannot be liquidated without the enactment of an appropriation, and that payment 

of liabilities other than for contracts can be abrogated by the sovereign entity.

These financial statements, with respect to the Consolidated Balance Sheet, Consolidated Statement of Net Cost 

and Consolidated Statement of Changes in Net Position, are reported using the accrual basis of accounting. Under 

the accrual basis of accounting, revenues are recognized when earned and expenses are recognized when a liability is incurred without regard to receipt or payment of cash. The Combined Statement of Budgetary Resources 

is reported using the budgetary basis of accounting. Budgetary accounting facilitates compliance with legal constraints and controls over the use of Federal funds. It generally differs from the accrual basis of accounting in that 

obligations are recognized when new orders are placed, contracts awarded and services received that will require 

payments during the same or future period. CBP non-entity revenue and refunds are reported on the Consolidated 

Statement of Custodial Activity using a modified cash basis. With this method, revenue from cash collections are 

reported separately from receivable accruals and cash disbursements are reported separately from payable accruals.

In accordance with OMB Circular A-136, intra-CBP transactions and balances have been eliminated from the 

Consolidated Balance Sheet, Consolidated Statement of Net Cost, and the Consolidated Statement of Changes in Net 

Position. As provided for by OMB Circular A-136, the Combined Statement of Budgetary Resources is presented on 

a combined basis; therefore, intra-CBP transactions and balances have not been eliminated from this statement. 

Earmarked Funds

SFFAS No. 27, Identifying and Reporting Earmarked Funds, requires CBP to separate dedicated collections into two categories, earmarked and fiduciary activity. See Note 18, Earmarked Funds, for specific required disclosures related 

to CBP’s earmarked funds.

CBP has program management responsibility for the following earmarked funds:

Appropriation Title

70X5087 CBP - Immigration User Fees

70X5089 Land Border Inspection Fees

70X5451 Enforcement Fines Account

70X5543 International Registered Traveler

Notes to Financial Statements
Financial Section 97

Notes to Financial Statements

70X5595 Electronic Systems for Travel Authorization Fees

70X5694 Small Airport User Fees

70X5695 Customs User Fees Account

70X8870 Harbor Maintenance Fee Collections

Assets and Liabilities

Intra-governmental assets and liabilities result from activity with other Federal agencies. All other assets and 

liabilities result from activity with parties outside the Federal Government, such as domestic and foreign persons, 

organizations or governments.

Fund Balance with Treasury, Cash, and Other Monetary Assets

Entity Fund Balance with Treasury are the amounts remaining as of September 30, 2011 and 2010 from which 

CBP is authorized to make expenditures and pay liabilities resulting from operational activity, except as restricted 

by law. Non-entity Fund Balance with Treasury represents funds available to pay refunds and drawback claims of 

duties, taxes, fees, and other non-entity amounts to be distributed to the Treasury General Fund and other Federal 

accounts in a future period.

A timing difference occurs when cash is received and applied to a specific revenue type in one period, and the 

deposit occurs in a future period. Monetary assets are held by CBP in lieu of an importer/broker filing a surety 

bond. Corresponding liabilities are recorded for amounts expected to be allocated in future periods to Federal 

agencies.

Advances and Prepayments

Intra-governmental advances and prepayments consist of amounts paid to Federal agencies prior to CBP receipt of 

goods and services. Advances and prepayments to the public consist primarily of travel and salary advances and 

prepaid rent.

Accounts Receivable

Intra-governmental accounts receivable represent amounts due from Federal agencies. These receivables are 

expected to be fully collected. Accounts receivable from reimbursable services and user fees represent amounts 

due from non-Federal sources for services performed. By law, collections of these receivables can be credited to 

the appropriation accounts from which the related costs were paid. These receivables are net of amounts deemed 

uncollectible which are determined by considering the debtor’s current ability to pay, payment record, as well 

as the probable recovery of amounts from secondary sources, such as sureties, and an analysis of aged receivable 

activity. The user fee receivable is based on a calculated estimate using historical user fee collections.
98 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

Title 19 of the United States Code, chapter 1, section 58c, authorizes CBP, formerly known as the United States 

Customs Service, to collect user fees for services provided in connection with the processing of commercial air and 

commercial vessel passengers, loaded or partially loaded railroad cars carrying passengers or commercial flights 

arriving into the Customs territory as defined in general note 2 of the Harmonized Tariff Schedule of the United 

States (some exceptions apply).

Title 8 of the United States Code, chapter 12, subchapter II, part IX, section 1356, authorizes CBP to collect immigration user fees for inspection or pre-inspection of passengers arriving at a port of entry in the United States (as 

defined in Title 8, chapter 12, subchapter I, section 1101) aboard a commercial aircraft and commercial vessel 

(some exceptions apply). Receivables accrue for commercial airline and commercial vessel user fees on a quarterly 

basis. Payment is due any time within thirty-one days after the quarter in which the fees are collected, except 

the July and August fees collected from airline passengers shall be made ten days before the end of the fiscal year. 

Each quarterly payment shall include any collection made in the preceding quarter that was not remitted with the 

previous payment. Railroad car fees accrue on a monthly basis and the payments are due to CBP on or before the 

date that is 60 days after the applicable month.

Due to the Treasury General Fund

Due to the Treasury General Fund is the offsetting liability to non-entity collections and non-entity receivables.

Taxes, Duties and Trade Receivables

Taxes, Duties and Trade Receivables consist of duties, user fees, fines and penalties, refunds and drawback overpayments, and interest associated with import/export activity, which have been established as a specifically identifiable, legally enforceable claim which remain uncollected as of year-end. These receivables are net of amounts 

deemed uncollectible which were determined by considering the debtor’s payment record and ability to pay, the 

probable recovery of amounts from secondary sources, such as sureties, and an analysis of aged receivable activity. CBP’s non-entity receivables are described in more detail in Note 6, Taxes, Duties and Trade Receivables, Net.

Inventory and Related Property

Inventory and Related Property consists of aircraft, marine, and Office of Technology Innovation & Acquisition 

(OTIA), formerly Secure Border Initiative (SBI), operating materials and supplies to be used in CBP’s operations. Aircraft and OTIA parts and materials are recorded at average unit cost, and marine parts and materials are 

recorded using the First-In-First-Out valuation method. Both methods approximate actual acquisition costs. When 

ultimately used in CBP operations, an operating expense is recorded.
Financial Section 99

Notes to Financial Statements

Seized and Forfeited Property

Prohibited seized and forfeited property results primarily from CBP criminal investigations and passenger/cargo 

processing. Seized property is not considered an asset of CBP and is not reported as such in CBP’s financial statements; however, CBP has a stewardship responsibility until disposition of the seized items are determined. Nonprohibited seized property, including monetary instruments, real property and tangible personal property of 

others in the actual or constructive possession of CBP will be transferred to the Treasury Forfeiture Fund and is not 

presented in the accompanying CBP Consolidated Balance Sheet or Note 8, Seized and Forfeited Property.

Forfeited property is property for which the title has passed to the U.S. Government. As noted above, non-prohibited forfeited property or currency becomes assets of the Treasury Forfeiture Fund. However, prohibited forfeited items, such as counterfeit goods, narcotics, and firearms, are held by CBP until disposed or destroyed. In 

accordance with SFFAS No. 3, Accounting for Inventory and Related Property, analysis of changes in seized and forfeited 

property of prohibited items are disclosed in Note 8, Seized and Forfeited Property.

General Property, Plant, and Equipment

CBP capitalizes property, plant and equipment, excluding land, with an acquisition value of $50 thousand or 

greater, and a useful life of two years or greater. Effective October 1, 2010, CBP decreased its land capitalization 

threshold from $50 thousand to zero to be consistent with DHS policy.

Expenditures for normal repairs and maintenance are charged to expense as incurred. When expenditures greater 

than $50 thousand extend an asset’s useful life they are capitalized.

Depreciation and amortization are computed using the straight line method over the estimated useful lives of the 

assets ranging from 2 to 30 years for equipment and software, 2 to 30 years for leasehold improvements, and 5 

to 40 years for buildings, structures and land improvements. Amortization of capitalized software begins on the 

date of acquisition if purchased or when the module or component has been successfully tested if contractor or 

internally developed.

The useful life ranges for improvements to land and vehicles in the PP&E note have been updated to reflect the 

CBP useful life policy.

Accounts Payable

A liability is recorded for an accounts payable accrual from commercial/travel activities. A portion of this liability 

is estimated. This estimate is based on a ratio using historical subsequent disbursements and undelivered orders, 

applying the ratio to the undelivered orders as of September 30, 2011 and 2010.
100 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

Accrued Annual, Sick, and Other Leave and Compensatory Time

Annual leave, compensatory time and other leave time are accrued when earned. The accrual is presented as a 

component of the payroll and benefits liability in the Consolidated Balance Sheet and is adjusted for changes in 

compensation rates and reduced for annual leave taken. Sick leave is expensed when used. For additional information see Note 13, Accrued Payroll and Benefits.

Pension Costs, Other Retirement Benefits, and Other Post-Employment Benefits

Most CBP employees hired prior to January 1, 1984 participate in the Civil Service Retirement System (CSRS). CBP 

contributes 7 percent of base pay for regular employees, and 7.5 percent for law enforcement agents. Employees 

hired after December 31, 1983 are automatically covered by the Federal Employees’ Retirement System (FERS) and 

Social Security. A primary feature of FERS is that it offers a savings plan to which CBP automatically contributes 1 

percent of base pay and matches any employee contributions up to an additional 4 percent of base pay. For most 

employees hired after December 31, 1983, CBP also contributes the employees’ matching share for Social Security. 

For the FERS basic benefit, CBP contributes 11.7 percent of base pay for regular employees and 25.7 percent for law 

enforcement agents. The pay base for determining CBP contributions to CSRS and FERS for inspectors and canine 

officers include regular pay and up to a maximum of $17.5 thousand in certain overtime earnings for FY 2011 and 

2010. CBP recognizes the full costs of its employees’ pension benefits; however, the liability associated with these 

costs is recognized by the Office of Personnel Management (OPM).

Similar to Federal retirement plans, OPM, rather than CBP, reports the liability for future payments to retired 

employees who participate in the Federal Employees Health Benefits Program and the Federal Employees Group 

Life Insurance Program.

A liability for other post-employment benefits, which includes all types of benefits to former or inactive (but not 

retired) employees, their beneficiaries, and covered dependents, is also recognized. For additional information see 

Note 13, Accrued Payroll and Benefits.

Workers’ Compensation

A liability is recorded for actual and estimated future payments to be made for workers’ compensation pursuant 

to the Federal Employees’ Compensation Act (FECA). The FECA program is administered by the U.S. Department 

of Labor (DOL), which initially pays valid claims and subsequently seeks reimbursement from Federal agencies 

employing the claimants. Reimbursement to DOL on payments made usually occurs approximately two years 

subsequent to the actual disbursement. Budgetary resources for this intra-governmental liability are made available to CBP as part of its annual appropriation from Congress in the year in which the reimbursement takes place. 

The liability under which unemployment compensation is recorded is entitled Other Employment Liabilities; the 
Financial Section 101

Notes to Financial Statements

liability under which unfunded FECA is recorded is entitled Accrued FECA Liability and actuarial FECA is recorded 

in Accrued Payroll and Benefits in the accompanying Consolidated Balance Sheet.

Additionally, the actuarial liability due to the public includes the expected liability for death, disability, medical 

and miscellaneous costs for approved compensation cases. The liability is determined using a method that utilizes 

historical benefit payment patterns related to a specific incurred period to predict the ultimate payments related 

to that period. Based on information provided by DOL, DHS allocates the actuarial liability to its components and 

department offices based on the payment history for the components and department offices. The accrued liability 

is not covered by budgetary resources and will require future funding. For additional information see Note 13, 

Accrued Payroll and Benefits.

Unexpended Appropriations

Unexpended appropriations represent the amount of CBP unexpended appropriated spending authority as of fiscal 

year-end that is unliquidated or is unobligated and has not lapsed, been rescinded or withdrawn.

Cumulative Results of Operations

Cumulative Results of Operations primarily represent the excess of user fee revenues over related expenses. It 

also reflects the net investment in Property, Plant and Equipment, Inventory and Related Property held for use, 

and transfers in of equipment, materials and supplies from other Federal agencies without reimbursement. Also, 

included as a reduction in Cumulative Results of Operations, are liabilities incurred, which will require funding 

from future appropriations, such as accumulated annual and other leave earned but not taken, accrued workers’ 

compensation and contingent liabilities. The portion of Cumulative Results of Operations attributable to earmarked 

funds is shown separately on both the Consolidated Balance Sheet and the Consolidated Statement of Changes in 

Net Position. For additional information see Note 18, Earmarked Funds.

Revenue, Financing Sources, and Expense Recognition

CBP entity activities are financed principally through appropriations, exchange revenue and non-exchange revenue. Appropriations used are recognized as a financing source when expenses are incurred or assets are purchased. 

Exchange revenues from reimbursable services and intra-governmental reimbursable activity are recognized as 

earned when the goods or services are provided and reflect the full cost of the goods or services provided. Nonexchange revenue from user fees is recognized as earned in accordance with the Consolidated Omnibus Budget 

Reconciliation Act of 1985, as amended. CBP may retain the user fee revenues and expend them as authorized 

by law for CBP inspector overtime and other activities directly related to the services to which the fees relate. An 

imputed financing source is also recognized to offset costs incurred by CBP but funded by another Federal source, 

generally in the period in which the cost was incurred. Expenses are recognized when goods or services are 

received, when inventory is used, or assets are depreciated or amortized.
102 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

The FY 2011 and 2010 activities reported on the Consolidated Statement of Net Cost contain all resource costs 

assigned from CBP cost centers. An activity-based costing system derives an estimate of the agency’s cost by activity performed. The key driver behind CBP’s allocation of cost to activity is labor hours. Each pay period, all CBP 

personnel log their time to one or more of several hundred distinct activities. Time recorded by operational cost 

center is also used to assign mission support and overhead costs to field operational cost center activities. The time 

and attendance system used to record personnel labor hours is COSS (Customs Overtime Scheduling System).

Non-entity Revenue is recognized when the cash CBP is entitled to collect on behalf of the Federal Government 

is earned. Primarily, these revenue collections result from current fiscal year activities. The significant types of 

revenues collected and related disbursements are described below:

•	 Duties: amounts collected on imported goods.

•	 User fees: amounts collected for certain services as provided by law.

•	 Excise taxes: amounts collected on imported distilled spirits, wines and tobacco products, and other miscellaneous taxes collected.

•	 Fines and penalties: amounts collected for violations of laws and regulations.

•	 Refunds: payments made to importers/exporters are primarily identified when the import entries are liquidated, a process in which CBP makes final determination of duties, taxes, fees and interest owed on each 

entry and compares it to the estimated amount previously determined and paid by the importer/broker. 

Interest is included in the refund generally for the period of time between when the estimated amounts were 

received from the importer/broker and the time the entry is liquidated. When a refund is identified prior to 

liquidation, the refund from this remittance is funded from the duty, tax or fee collections rather than from 

the Refunds and Drawback Account.

•	 Drawback: a remittance, in whole or in part, of duties, taxes or fees. Drawback typically occurs when the 

imported goods on which duties, taxes or fees have been previously paid are subsequently exported from the 

United States or destroyed prior to entering the commerce of the United States. Depending on the type of 

claim, the claimant has up to six or eight years from the date of importation to file for drawback.

A financing source for refunds and drawback is recognized when payment is made. The financing source, representing the permanent, indefinite appropriation account used to fund the disbursement, is recorded as a decrease 

in the amount transferred to Treasury General Fund Accounts reported on the Statement of Custodial Activity.

A transfer to the Treasury General Fund is recognized when the non-entity revenue, collected on behalf of the 

Federal Government, is deposited into various receipt Treasury Symbols designated for the particular type of revenue collected.

An accrual adjustment is included to adjust cash collections and refund disbursements with the net increase or 

decrease of accrued Non-entity Accounts Receivable, net of uncollectible amounts and refunds payable.
Financial Section 103

Notes to Financial Statements

Use of Estimates

Management has made certain estimates and assumptions in the reporting of assets, liabilities and note disclosures 

in the Consolidated Balance Sheet, Consolidated Statement of Net Cost, Consolidated Statement of Changes in Net 

Position, Combined Statement of Budgetary Resources, Consolidated Statement of Custodial Activity and accompanying notes. Actual results could differ from these estimates. Significant estimates include: year-end accruals of 

accounts payable, contingent legal and environmental liabilities, accrued workers’ compensation, allowance for 

doubtful accounts receivable, allowance for doubtful taxes, duties and trade receivables, accruals for construction 

projects, retirement and post-retirement benefits assumptions, and certain non-entity receivables and payables 

related to custodial activities.

Taxes

CBP, as a Federal component, is not subject to Federal, state or local income taxes and accordingly, no provision for 

income taxes has been recorded in the accompanying financial statements.

Reclassification

In FY 2011, CBP made certain reclassifications to FY 2010 balances to conform to FY 2011 presentation.
104 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

2. Non-Entity Assets

Non-entity assets as of September 30, 2011 and 2010, consist of the following (in thousands):

2011 2010

Intra-Governmental:

Fund Balance with Treasury (Note 3) $ 803,540 $ 815,856

Public

Cash and Other Monetary Assets (Note 4) 3,844 2,734

Accounts Receivable, Net 476 425

Taxes, Duties and Trade Receivables, Net (Note 6) 2,731,765 2,458,647

Total Public 2,736,085 2,461,806

Total Non-entity Assets 3,539,625 3,277,662

Total Entity Assets 12,695,092 13,115,295

Total Assets $ 16,234,717 $ 16,392,957

Non-entity Fund Balance with Treasury as of September 30, 2011 and 2010 includes approximately $152.9 million and $129.7 million (in deposit fund) in duties collected by CBP for U.S. Virgin Islands, U.S. Department of 

Agriculture and antidumping/countervailing duties and $512.6 million and $546.9 million for Injured Domestic 

Industries as of September 30, 2011 and 2010, respectively. These assets are directly offset with liabilities as of 

September 30, 2011 and 2010.

Non-entity Fund Balance with Treasury consists of special and deposit funds, permanent appropriations, and 

miscellaneous receipts that are available to pay non-entity liabilities. Taxes, Duties and Trade receivables from the 

public represent amounts due from importers for goods and merchandise imported to the United States and, upon 

collection, will be available to pay the accrued intra-governmental liability Due to the Treasury General Fund, 

which equaled $2.8 billion and $2.5 billion as of September 30, 2011 and 2010.
105

Notes to Financial Statements

Financial Section

3. Fund Balance with Treasury

Fund Balance with Treasury as of September 30, 2011 and 2010 consists of the following (in thousands):

2011 Entity Non-Entity Total

Trust Funds $ 290 $ -- $ 290

Special Funds 932,906 512,645 1,445,551 

General Funds 5,249,869 137,993 5,387,862 

Other Funds 3,111 -- 3,111 

Deposit Funds 1,703 152,902 154,605

Total $ 6,187,879 $ 803,540 $ 6,991,419

2010 Entity Non-Entity Total

Trust Funds $ 5,141 $ -- $ 5,141

Special Funds 798,372 546,916 1,345,288

General Funds 6,064,764 139,200 6,203,964

Other Funds -- -- --

Deposit Funds 2,453 129,740 132,193

Total $ 6,870,730 $ 815,856 $ 7,686,586

Trust funds are both receipt accounts and expenditure accounts that are designated by law as a trust fund. The 

entity trust fund balances result from CBP authority to use the proceeds from general order items sold at auction to 

offset specific costs incurred by CBP relating to their sale, and to use available funds from the Harbor Maintenance 

Fee Trust Fund to offset administrative expenses related to the collection of the Harbor Maintenance Fee.

Special funds are receipt funds used for specific purposes. Entity amounts comprising the special fund balances 

result from CBP authority to assess and collect passenger and conveyance-related user fees, CBP authority to assess 

and collect fees associated with services performed at certain small airports or other facilities, and CBP authority 

to retain amounts needed to offset costs associated with collecting duties, taxes, and fees for the Government of 

Puerto Rico. As of September 30, 2011 and 2010, CBP User Fees account includes approximately $714.3 million 

and $714.7 million, respectively; CBP Services at Small Airports account contained approximately $15.9 million 

and $16.8 million, respectively; Refunds, Transfers and Expenses of Operation of Puerto Rico account contained 

approximately $51.9 million and $39.3 million, respectively; and Immigration User Fees of $95.0 million and 

$18.4 million, respectively. Non-entity fund balance represents amounts collected in connection with antidumping 

and countervailing duties of $512.6 million and $546.9 million as of September 30, 2011 and 2010, respectively. 

Of which $431.5 million and $546.9 million are eligible for payment to qualifying Injured Domestic Industries as 

of September 30, 2011 and 2010, respectively, the remaining amount is Due to the Treasury General Fund.

General funds consist of amounts appropriated annually by Congress to fund the operations of CBP. The non-entity 

general fund balance represents permanent, indefinite appropriations to pay refunds and drawback claims of 

duties, taxes, or fees. The balance is presented as a non-entity balance because the refund and drawback payments 

are associated with CBP custodial activity of collecting revenue on behalf of the Federal Government.
106 U.S. Customs and Border Protection • Performance and Accountability Report

The entity deposit fund balance represents amounts received as an advance that are not accompanied by an order. 

Once the order is received the deposit fund balance is decreased. Deposit funds represent amounts received as an 

advance that are not accompanied by an order and include non-entity collections.

Status of Fund Balance with Treasury as of September 30, 2011 and 2010 consists of the following (in thousands):

2011 Entity Non-Entity Total

Unobligated Balance

Available $ 3,000 $ -- $ 3,000

Unavailable 1,752,537 512,645 2,265,182 

Obligated Balance not yet Disbursed 4,411,278 137,993 4,549,271 

Non-Budgetary FBWT 21,064 152,902 173,966 

Total $ 6,187,879 $ 803,540 $ 6,991,419

2010 Entity Non-Entity Total

Unobligated Balance

Available $ 63,384 $ -- $ 63,384

Unavailable 2,036,013 546,916 2,582,929

Obligated Balance not yet Disbursed 4,759,104 130,048 4,889,152

Non-Budgetary FBWT 12,229 138,892 151,121

Total $ 6,870,730 $ 815,856 $ 7,686,586

Portions of the Unobligated Balance Unavailable include amounts appropriated in prior fiscal years that are not 

available to fund new obligations. However, it can be used for upward and downward adjustments for existing 

obligations in future years.

The Obligated Balance not yet Disbursed represents amounts designated for payment of goods or services ordered, 

but not received, or goods and services received but for which payment has not yet been made.

CBP returned to Treasury $79.7 million and $377.8 million for indefinite no-year authority and retained $138.1 

million and $130.1 million in authority for obligations pursuant to public law during both the years ending 

September 30, 2011 and 2010.

In accordance with Public Law 101-510, CBP is required to automatically cancel obligated and unobligated balances 

of appropriated funds five years after a fund expires. Obligations that have not been paid at the time an appropriation is canceled may be paid from an unexpired appropriation that is available for the same general purpose. As of 

September 30, 2011, CBP canceled $80.7 million from FY 2006 annual appropriations. As of September 30, 2010, 

CBP canceled $58.6 million from FY 2005 annual appropriations.

Notes to Financial Statements
107

4. Cash and Other Monetary Assets

Cash and Other Monetary Assets as of September 30, 2011 and 2010, consist of the following (in thousands):

2011 Entity Non-Entity Total

Imprest Funds $ 190 $ -- $ 190 

Undeposited Collections 138 3,844 3,982 

Monetary Assets -- -- -- 

Total $ 328 $ 3,844 $ 4,172

2010 Entity Non-Entity Total

Imprest Funds $ 163 $ -- $ 163

Undeposited Collections 465 2,634 3,099

Monetary Assets -- 100 100

Total $ 628 $ 2,734 $ 3,362

Undeposited collection balances represent timing differences between when cash relating to duties, taxes, fees, 

and other trade related collections are received and the deposit occurs in a future period. Cash can either be distributed to the General Fund, other Federal agencies, other governments, or returned to the importer/broker. The 

monetary assets represent instruments importers/brokers provide to CBP in lieu of obtaining surety bonds.

5. Accounts Receivable, Net

Receivables with the public as of September 30, 2011 and 2010 are as follows (in thousands):

2011

Receivable Category Gross Receivable Amounts 

Uncollectible

Total Net 

Receivables

Reimbursable Services $ 5,953 $ -- $ 5,953 

Customs User Fees 101,789 (4,035) 97,754 

Immigration User Fees 54,339 (15,069) 39,270 

Total $ 162,081 $ (19,104) $ 142,977 

2010

Receivable Category Gross Receivable Amounts 

Uncollectible

Total Net 

Receivables

Reimbursable Services $ 3,907 $ -- $ 3,906 

Customs User Fees 95,361 (2,201) 93,160 

Immigration User Fees 72,091 (15,187) 56,905 

Total $ 171,359 $ (17,388) $ 153,971 

Financial Section

Notes to Financial Statements
108 U.S. Customs and Border Protection • Performance and Accountability Report

6. Taxes, Duties, and Trade Receivables, Net

Receivables as of September 30, 2011 and 2010 are as follows (in thousands):

2011

Receivable Category Gross Receivable Amounts 

Uncollectible

Total Net 

Receivables

Duties $ 2,352,720 $ (147,551) $ 2,205,169 

Excise Taxes 164,325 (8,349) 155,976 

User Fees 148,479 (2,150) 146,329 

Fines/Penalties 437,141 (350,518) 86,623 

Interest 453,070 (405,266) 47,804

Antidumping/Countervailing Duties 885,087 (795,299) 89,788

Refunds and Drawback 657 (581) 76 

Total $ 4,441,479 $ (1,709,714) $ 2,731,765 

2010

Receivable Category Gross Receivable Amounts 

Uncollectible

Total Net 

Receivables

Duties $ 2,161,519 $ (139,392) $ 2,022,127

Excise Taxes 121,282 (5,916) 115,366

User Fees 133,176 4,329 137,505

Fines/Penalties 454,475 (370,706) 83,769

Interest 350,652 (314,848) 35,804

Antidumping/Countervailing Duties 551,270 (487,255) 64,015

Refunds and Drawback 586 (525) 61

Total $ 3,772,960 $ (1,314,313) $ 2,458,647

CBP assesses duties, taxes and fees on goods and merchandise brought into the United States from foreign countries. At the time importers bring merchandise into the United States, they are required to file CBP entry documents. Generally, within 10 working days after CBP releases the merchandise into the U.S. commerce, the importer 

is to submit an entry document with payment of estimated duties, taxes and fees. CBP allows periodic monthly 

payment that requires payment of estimated duties, taxes and fees on the 15th work day of the month following 

release. A receivable of $2.4 billion and $2.2 billion was recorded for 1,004,970 entries and 993,375 entries for 

merchandise released into commerce on or before September 30, 2011 and 2010, respectively. It is CBP’s policy to 

track and demand payment of unpaid estimated duties, taxes and fees receivable amounts by establishing a liquidated damage case which generally results in a fine and penalty type receivable.

A fine or penalty is established when a violation of import/export law is discovered. CBP assesses a liquidated 

damage or penalty for these cases to the maximum extent of the law. After receiving the notice of assessment, the 

importer or surety has 60 days to either file a petition requesting a review of the assessment or make payment of 

the assessed amount. Until this process has been completed, CBP records an allowance on fines and penalties of 

approximately 80.5 percent of the total assessment based on historical experience of fines and penalties mitigation 

and collection. Duties and taxes receivable are non-entity assets for which there is an offsetting liability due to the 

Treasury General Fund.

Notes to Financial Statements
109

7. Inventory and Related Property, Net

Operating Materials and Supplies

Operating Materials and Supplies consist of parts and materials to repair and maintain CBP aircraft, vessels, and 

OTIA projects used for enforcement activities. OTIA operating materials and supplies as of September 30, 2011 

and 2010 includes $30.2 million and $49.1 million for steel used to repair Border Patrol tactical infrastructure (BP 

TI) and $21.2 million and $19.2 million in spare parts used to repair systems maintained by OTIA. CBP defines 

operating materials and supplies categorized as “Held for Repair” as items that are useable by CBP after repair. CBP 

defines operating materials and supplies categorized as “Excess, Obsolete, and Unserviceable” to consist of items 

that are no longer useable by CBP.

Operating Materials and Supplies as of September 30, 2011 and 2010 consist of the following (in thousands):

2011 2010

Aircraft

Items Held for Use $ 93,771 $ 71,661

Items Held for Repair 18,563 11,862

Excess, Obsolete, and Unserviceable Items 2,766 983

Total Aircraft 115,100 84,506

Vessels

Items Held for Use 4,921 5,819

Items Held for Repair 10 248

Excess, Obsolete, and Unserviceable Items 318 176

Total Vessels 5,249 6,243

OTIA

Items Held for Use 44,970 56,671

Items Held for Repair 5,665 9,447

Excess, Obsolete, and Unserviceable Items 801 2,154

Total OTIA 51,436 68,272

Total $ 171,785 $ 159,021

Financial Section

Notes to Financial Statements
110 U.S. Customs and Border Protection • Performance and Accountability Report

8. Seized and Forfeited Property

This schedule is presented for material categories of prohibited (non-valued) seized and forfeited property only. 

These items are retained and ultimately destroyed by CBP and are not transferred to the Department of the 

Treasury Forfeiture Fund or other Federal agencies. The ending balance for firearms includes only those seized 

items that can actually be used as firearms. Illegal drugs are presented in kilograms and a portion of the weight 

includes packaging, which often cannot be reasonably separated from the weight of the drugs since the packaging 

must be maintained for evidentiary purposes. Firearms are presented in number of cases.

Analysis of Changes in Prohibited (Non-Valued) Seized Property, September 30, 2011

Category Unit of 

Measurement

Balance 

October 1 New Seizures Remissions New Forfeitures Adjustments* Balance 

September 30

Illegal Drugs

Cannabis 

(marijuana) Kilograms 1,857 1,385,602 0 (1,387,482) 2,109 2,086

Cocaine Kilograms 169 26,999 0 (27,020) (74) 74

Heroin Kilograms 8 1,892 0 (1,897) 0 3

Ecstasy Kilograms 9 451 0 (451) (8) 1

Steroids Kilograms 578 312 0 (722) (3) 165

Firearms Number 

of Cases 1,482 4,446 (1,340) (1,502) (97) 2,989

Analysis of Changes in Prohibited (Non-Valued) Seized Property, September 30, 2010

Category Unit of 

Measurement

Balance 

October 1 New Seizures Remissions New Forfeitures Adjustments* Balance 

September 30

Illegal Drugs

Cannabis 

(marijuana) Kilograms 1,163 1,203,104 0 (1,203,504) 1,094 1,857

Cocaine Kilograms 174 23,955 0 (23,968) 8 169

Heroin Kilograms 5 4,674 0 (4,673) 2 8

Ecstasy Kilograms 34 787 0 (786) (26) 9

Steroids Kilograms 97 1,331 (812) (280) 242 578

Firearms Number 

of Cases 1,379 2,259 (1,267) (763) (126) 1,482

* Adjustments are the result of changes to the beginning balance due to inventory counts, changes in legal status or property 

type, and/or discontinuance of cases.

Notes to Financial Statements
111

Analysis of Changes in Prohibited (Non-Valued) Forfeited Property, September 30, 2011

Category Unit of 

Measurement

Balance 

October 1 New Forfeitures Transfers Destroyed Adjustments* Balance 

September 30

Illegal Drugs

Cannabis 

(marijuana) Kilograms 116,025 1,387,482 (711) (537,859) (844,470) 120,467

Cocaine Kilograms 24,601 27,020 (881) (22,579) (4,230) 23,931

Heroin Kilograms 6,085 1,897 (135) (2,223) (3,256) 2,368

Ecstasy Kilograms 1,107 451 0 (481) (19) 1,058

Steroids Kilograms 17 722 0 (446) 0 293

Firearms Number 

of Cases 647 1,502 (1,563) (7) 432 1,011

Analysis of Changes in Prohibited (Non-Valued) Forfeited Property, September 30, 2010

Category Unit of 

Measurement

Balance 

October 1 New Forfeitures Transfers Destroyed Adjustments* Balance 

September 30

Illegal Drugs

Cannabis 

(marijuana) Kilograms 126,052 1,203,504 (543) (471,500) (741,488) 116,025

Cocaine Kilograms 19,037 23,968 (123) (66,259) 47,978 24,601

Heroin Kilograms 2,270 4,673 (36) (1,118) 296 6,085

Ecstasy Kilograms 1,417 786 (46) (1,140) 90 1,107

Steroids Kilograms 39 280 0 (300) (2) 17

Firearms Number 

of Cases 412 763 (576) (1) 49 647

* Adjustments are the result of changes to the beginning balance due to inventory counts, changes in legal status or property 

type, and/or discontinuance of cases.

Financial Section

Notes to Financial Statements
112 U.S. Customs and Border Protection • Performance and Accountability Report

9. General Property, Plant, and Equipment, Net

Property, Plant and Equipment as of September 30, 2011 and 2010 consist of the following (in thousands):

2011

Categories Useful Life 

(in years) Acquisition Cost

Accumulated 

Depreciation/

Amortization

Net

Book Value

Land and Land Rights N/A $ 156,931 $ -- $ 156,931

Improvements to Land 5–40 1,960,132 (256,343) 1,703,789

Construction in Progress N/A 979,308 -- 979,308

Buildings, Other Structures and Facilities* 6–40 1,218,736 (222,849) 995,887

Equipment:

ADP Equipment 5 410,867 (311,668) 99,199

Aircraft 12–20 1,253,151 (655,920) 597,231

Vessels 5–30 42,189 (18,451) 23,738

Vehicles 4–8 428,662 (310,014) 118,648

Other Equipment 5–15 1,660,832 (884,382) 776,450

Leasehold Improvements 2–30 325,688 (152,078) 173,610

Internal Use Software 5 945,367 (695,587) 249,780

Internal Use Software-in Development N/A 148,357 -- 148,357

Total $ 9,530,220 $ (3,507,292) $ 6,022,928

2010

Categories Useful Life 

(in years) Acquisition Cost

Accumulated 

Depreciation/

Amortization

Net

Book Value

Land and Land Rights N/A $ 142,144 $ -- $ 142,144

Improvements to Land 6–40 1,762,773 (158,482) 1,604,291

Construction in Progress N/A 1,387,758 -- 1,387,758

Buildings, Other Structures and Facilities* 6–40 1,066,864 (189,758) 877,106

Equipment:

ADP Equipment 5 429,018 (308,308) 120,710

Aircraft 12–20 1,069,353 (611,339) 458,014

Vessels 5–30 37,766 (15,372) 22,394

Vehicles 3–8 427,150 (300,405) 126,745

Other Equipment 5–15 1,097,699 (746,670) 351,029

Leasehold Improvements 2–30 350,066 (118,209) 231,857

Internal Use Software 5 882,326 (718,314) 164,012

Internal Use Software-in Development N/A 195,394 -- 195,394

Total $ 8,848,311 $ (3,166,857) $ 5,681,454

* Includes four multi-use heritage assets located in Puerto Rico with an acquisition value of $534 thousand.

Notes to Financial Statements
113

10. Stewardship PP&E

CBP’s Stewardship PP&E is comprised of heritage assets located in the United States, including the Commonwealth 

of Puerto Rico. CBP aggregates its personal property heritage assets as collection of documents and artifacts and 

reflects its multi-use heritage assets as number of physical units. Information related to heritage assets at September 

30, 2011 and 2010 consists of the following:

2011

Categories Beginning 

Balance Additions Withdrawals Adjustments Total

Collection-type Assets

Documents 1 -- -- -- 1

Artifacts 1 -- -- -- 1

Multi-use Heritage Assets 4 -- -- -- 4

Total Stewardship PP&E 6 -- -- -- 6

2010

Categories Beginning 

Balance Additions Withdrawals Adjustments Total

Collection-type Assets

Documents 1 -- -- -- 1

Artifacts 1 -- -- -- 1

Multi-use Heritage Assets 4 -- -- -- 4

Total Stewardship PP&E 6 -- -- -- 6

CBP possesses a wide range of documents and artifacts which are unique due to historical, cultural, artistic, or 

architectural significance. These assets are used to preserve and to provide education on CBP’s history and tradition. Documents consist of dated tariff classifications, CBP regulations, ledgers of Collectors of Customs, and 

Custom pamphlets. Artifacts include antique scales, dated pictures of Customs Inspectors, aged tools used to sample 

imported commodities such as wood bales and bulk grain, and dated Customs uniforms, badges, and stamps.

As of September 30, 2011 and 2010, CBP maintains four Customs houses, designated as multi-use heritage assets, 

located in Puerto Rico valued at $534 thousand which are fully depreciated. All multi-use heritage assets are 

reflected on the Consolidated Balance Sheet. Deferred maintenance and condition information for heritage assets 

are presented in the required supplementary information.

Financial Section

Notes to Financial Statements
114 U.S. Customs and Border Protection • Performance and Accountability Report

11. Advances and Prepayments

Intra-governmental advances and prepayments as of September 30, 2011 and 2010, totaling $155.1 million and 

$235.3 million, respectively, consist primarily of advances to UNICOR for vehicle purchases.

Advances and prepayments with the public as of September 30, 2011 and 2010, totaling $79 thousand and $108 

thousand, respectively, consist of employee travel and salary advances and prepaid rent.

12. Liabilities Not Covered by Budgetary Resources

Liabilities Not Covered by Budgetary Resources as of September 30, 2011 and 2010, consist of the following 

(in thousands):

2011 2010

Intra-Governmental:

Accrued FECA Liability $ 147,352 $ 148,988

Other Employment Liabilities 2,076 5,588

Due to the Treasury General Fund 2,816,790 2,461,903

Total Intra-Governmental 2,966,218 2,616,479

Public:

Accrued Payroll and Benefits:

Accrued Unfunded Leave (Note 13) 415,318 390,221

Actuarial FECA Liability (Note 13) 821,599 773,051

Environmental and Disposal Liabilities (Note 14) 16,472 15,667

Legal Contingent Liabilities 386,266 380,984

Total Public 1,639,655 1,559,923

Total Liabilities Not Covered by Budgetary Resources 4,605,873 4,176,402

Total Liabilities Covered by Budgetary Resources 1,861,435 1,985,416

Total Liabilities $ 6,467,308 $ 6,161,818

Liabilities not covered by new budget authority or other budgetary resources represent amounts owed in excess of 

available appropriated or other amounts. Available budgetary resources include new budget authority, unobligated 

balances of budgetary resources at the beginning of the year or net transfers of prior year balances during the year, 

spending authority from offsetting collections, and recoveries of unexpired budget authority through downward 

adjustments of prior year obligations.

Notes to Financial Statements
115

13. Accrued Payroll and Benefits

The payroll and benefits liability as of September 30, 2011 and 2010 consists of the following (in thousands):

2011 2010

Accrued Funded Payroll and Benefits $ 335,189 $ 298,963

Accrued Unfunded Leave 415,318 390,221

Actuarial FECA Liability 821,599 773,051

Total $ 1,572,106 $ 1,462,235

Actuarial workers compensation liability claims incurred for the benefit of CBP employees under FECA are administered by DOL and are ultimately paid by CBP. Future workers’ compensation estimates are generated from an 

application of actuarial procedures developed by the DOL.

14. Environmental & Disposal Liabilities

CBP is required to remediate contamination in accordance with Federal laws in order to protect human health and 

the environment. These laws include the Comprehensive Environmental Response, Compensation and Liability 

Act, the Resource Conservation and Recovery Act, the Oil Pollution Act, the Clean Water Act, the Toxic Substances 

Control Act, and the Clean Air Act.

Estimated environmental liabilities include expected future cleanup costs and those associated with site characterization, sampling, risk assessment, removal of contamination sources, treatment, containment, and monitoring. 

These costs are recognized and disclosed in accordance with SFFAS No. 5; SFFAS No. 6; Technical Releases No. 

2, 10, and 11, and DHS policy directives and memorandum. CBP records the estimated cost of environmental 

liabilities that are probable and measurable to the current operating period. For those probable sites where future 

liability is unknown or no reasonable estimate of the cost to clean up a particular site could be made, the cost of 

studies necessary to evaluate response or remediation requirements is reported.

CBP’s environmental cleanup liability as of September 30, 2011 and 2010 was $16.5 million and $15.7 million, 

respectively. There were no material changes in total estimated cleanup costs due to changes in law or technology. 

Notable changes in estimated liabilities include:

•	 Estimates of liability are presented in FY 2011 dollars and have been appropriately escalated to account 

for inflation.

•	 Inventory of liabilities modified due to Due Care Review process.

•	 The estimate for environmental remediation increased in FY 2011 due to the re-evaluation of the El Cajon 

remediation site.

Financial Section

Notes to Financial Statements
116 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

15. Other Liabilities

CBP considers $84.8 million and $81.3 million of the accrued FECA Liability, $821.6 million and $773.1 million 

of the actuarial FECA Liability, and $356.8 million and $354.3 million of the Legal Contingent Liabilities as noncurrent as of September 30, 2011 and 2010, respectively. CBP considers all remaining Other Liabilities as current.

Other Public Liabilities includes the following:

Refunds Payable

Refunds Payable consists of amounts owed for refunds of duty and other trade related activity and drawback claims. 

These liabilities, all considered current year liabilities, are principally funded from the Refunds and Drawback 

account.

CBP accrues a liability for refunds and drawback claims approved at year-end, but paid subsequent to year-end. 

Payments made to importers/exporters are primarily identified when the import entry is liquidated, a process in 

which CBP makes a final determination of duties, taxes and fees owed on the entry. Due to non-liquidation of the 

entries, the amount to be refunded is undetermined. Therefore, a historical calculated average was used to determine a ratio for estimating the payable to be recorded. Using this average, CBP has estimated $28.6 million and 

$31.4 million as of September 30, 2011 and 2010, respectively, as a payable.

The September 30, 2011 and 2010 accrued liability consists of the following (in thousands):

2011 2010

Refunds $ 105,680 $ 91,904

Drawback Claims 25,733 37,243

Total $ 131,413 $ 129,147

Injured Domestic Industries

The Continued Dumping and Subsidy Offset Act (CDSOA) of 2000 (P.L. 106-387, Title X), enacted in FY 2001, calls for 

CBP to collect and disburse monies received in connection with antidumping and countervailing duty orders and 

findings to qualifying Injured Domestic Industries (IDI). Antidumping duties are collected when it is determined 

that a class or kind of foreign merchandise is being released into the U.S. economy at less than its fair value to the 

detriment of a U.S. industry. Countervailing duties are collected when it is determined that a foreign government 

is providing a subsidy to its local industries to manufacture, produce, or export a class or kind of merchandise 

for import into the U.S. commerce to the detriment of a U.S. industry. Due to the repeal of the CDSOA in the 

Deficit Reduction Omnibus Reconciliation Act of 2005, only duties on entries filed prior to October 1, 2007 will 

eventually be distributed to affected U.S. companies pursuant to rulings by the U.S. Department of Commerce. As 

of September 30, 2011 and 2010, CBP recorded a liability of $431.5 million and $546.9 million, respectively. CBP 

makes annual payments of antidumping/countervailing duties to qualifying injured domestic industries.
Financial Section 117

Notes to Financial Statements

16. Leases

Operating Leases

CBP leases various facilities and equipment under leases accounted for as operating leases. The leased items consist 

of offices, warehouses, vehicles and other equipment. Much of the office space occupied by CBP is either owned by 

the Federal Government or is leased by the General Services Administration (GSA) from commercial sources. CBP 

is not committed to continue to pay rent to GSA beyond the period occupied providing proper advance notice to 

GSA unless the rental agreement is non-cancelable. Effective FY 2011, CBP identified most GSA rental agreements 

as non-cancelable, which resulted in a significant increase in total future lease payments. It is expected that CBP 

will continue to occupy and lease office space from GSA in future years.

The following schedule, by years, shows the future minimum rental payments required under operating 

leases that have initial or remaining non-cancelable lease terms in excess of one year, as of September 30, 2011 

(in thousands):

Fiscal Year

Facilities, 

Vehicles, and 

Equipment

2012 $ 145,936

2013 137,197 

2014 136,459

2015 133,019

2016 127,307 

Beyond 2016 882,873

Total Future Lease Payments $ 1,562,791
118 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

17. Commitments and Contingencies

Legal Contingent Liabilities

CBP is party to various administrative proceedings, legal actions, and claims brought by or against it. Any financially unfavorable administrative or court decision will normally be funded from either: (1) CBP appropriation for 

refunds and drawback for trade litigation issues; (2) various claims and judgment funds maintained by Treasury; 

or (3) CBP salary and expense appropriation.

The range of estimated contingent liabilities for all probable and estimable litigation related claims as of September 

30, 2011 and 2010 were $386.3 million to $616.6 million and $381.0 million to $544.9 million, respectively. 

Asserted and pending legal claims for which loss is reasonably possible range from an estimated $574.0 million 

to $586.8 million and $351.7 million to $413.4 million as of September 30, 2011 and 2010, respectively. As of 

September 30, 2011, CBP had 9 cases considered reasonably possible for which no estimate could be made.

As disclosed in the Other Liabilities note, $356.8 million and $354.3 million of the Legal Contingent Liabilities is 

considered non-current as of September 30, 2011 and 2010, respectively.

Duty and Trade Refunds

There are various other trade issues resolved by other Federal agencies, such as the Department of Commerce, 

which may result in refunds of duties, taxes and fees from the Refunds and Drawback Account. Until such time as a 

decision is reached by the other Federal agencies, CBP does not have sufficient information to estimate a contingent 

liability amount. All known refunds as of September 30, 2011 and 2010 have been recorded.

Loaned Aircraft

CBP is liable to the Department of Defense for damage or loss to aircraft on loan. CBP had 16 and 17 aircraft loaned 

from Department of Defense with an acquisition value of $94.4 million and $100.3 million, as of September 30, 

2011 and 2010, respectively.
Financial Section 119

Notes to Financial Statements

18. Earmarked Funds

Consolidated Omnibus Budget Reconciliation (COBRA)

In April 1986, the President signed the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985, which 

authorized CBP to collect user fees for certain services. The law initially established processing fees for air and sea 

passengers, commercial trucks, rail cars, private vessels and aircraft, commercial vessels, dutiable mail packages, 

and CBP broker permits. An additional fee category, contained in tax reform legislation, for processing barges and 

bulk carriers for Canada and Mexico, was added later that year. The collection of the COBRA fees for CBP services 

began on July 7, 1986.

In addition to the collection of user fees, other changes in CBP procedures were enacted due to the COBRA statute. 

Most importantly, provisions were included for providing non-reimbursable inspectional overtime services and 

paying for excess pre-clearance costs from the COBRA user fee collections.

The Customs and Trade Act of 1990 amended the COBRA legislation to provide for the hiring of inspectional personnel, the purchasing of equipment, and the covering of related expenses with any surplus monies available after 

overtime and excess pre-clearance costs are satisfied. Expenditures from the surplus can only be used to enhance 

the service provided to those functions for which fees are collected. This legislation took effect on October 1, 1990.

19 USC Section 58c contains the Fees for certain Customs services. The authority to use these funds is contained 

in the annual Department of Homeland Security Appropriations Act.

Immigration User Fees (IUF)

Joint Resolution (H.J. Res. 738), making continuing appropriations for FY 1987 (the “1987 Act”) (Public Laws 

99-500 and 99-591), established the Immigration User Fee Account (IUFA) [requiring] the [collection] of a $5 

fee charged to each passenger arriving in the United States from foreign locations aboard commercial aircraft and 

commercial vessels except passengers whose journeys originated in the United States, Canada, Mexico, a territory 

or possession of the United States, or an adjacent island. The 1987 Act directed the [INS] Service, beginning in FY 

1987, to collect an immigration user fee for each passenger arriving in the United States by commercial air or sea 

conveyance (with limited exceptions). This law was codified in 8 U.S.C. 1103, 1356, section 286, the Immigration 

and Nationality Act (INA).

In 1993, Congress amended section 286 of the INA by raising the immigration user fee from the original $5 to $6 

with the passage of Public Law 103-121. In 2002, in Public Law 107-77, Congress increased the immigration user 

fee from $6 to $7.
120 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

Also in Public Law 107-77, Congress amended section 286(e) of the INA to authorize the Attorney General to 

charge and collect a user fee from certain previously exempt commercial vessel passengers. Prior to the enactment 

of this law, commercial vessel passengers whose journeys originated in Canada, Mexico, a State, territory or possession of the United States, or an adjacent island, were statutorily exempt from paying the Immigration User Fee 

prescribed by section 286(d) of the INA. While these vessel passengers were exempt from paying the fee, the [INS] 

Service was still required to provide inspection services.

The IUFA was also established as a repository for fines imposed to prevent unauthorized landing and unlawful 

bringing of aliens in to the United States, penalties for document fraud, 31 Act overtime, and liquidated damages 

and expenses collected. All deposits into the IUFA are available until expended.

In FY 2003 with the formation of the DHS, CBP collects and shares the revenue from the immigration user fees 

with Immigration and Customs Enforcement (ICE). CBP maintains approximately 83 percent of the user fee, while 

the other 17 percent is turned over to ICE.

The following tables present condensed data relating to CBP earmarked funds (disclosed in note 1) as of and for 

the years ended September 30, 2011 and 2010 (in thousands). The Statement of Changes in Net Position balances 

have been presented in accordance with the reclassification disclosed in Note 21.

2011

Balance Sheet COBRA IUF All Others Total

Assets

Fund Balance with Treasury $ 717,398 $ 94,986 $ 71,751 $ 884,135

Taxes, Duties & Trade Receivables, Net 85,885 -- 401 86,286

Other Assets 97,892 39,270 573 137,735

Total Assets $ 901,175 $ 134,256 $ 72,725 $ 1,108,156

Liabilities and Net Position

Liabilities $ 104,873 $ -- $ 3,198 $ 108,071

Cumulative Results of Operations 796,302 134,256 69,527 1,000,085

Total Liabilities and Net Position $ 901,175 $ 134,256 $ 72,725 $ 1,108,156

Statement of Net Cost

Gross Cost $ 407,059 $ 468,394 $ 56,276 $ 931,729

Less: Earned Revenue -- -- 2,275 2,275

Net Cost of Operations $ 407,059 $ 468,394 $ 54,001 $ 929,454

Statement of Changes in Net Position

Net Position Beginning of Period $ 789,574 $ 75,434 $ 25,196 $ 890,204

Net Costs of Operations (407,059) (468,394) (54,001) (929,454)

Non-Exchange Revenue 405,519 -- 92,432 497,951

Net Transfers In/Out (1,552,209) (114,483) -- (1,666,692)

Other 1,560,477 641,699 5,900 2,208,076

Change in Net Position 6,728 58,822 44,331 109,881

Net Position End of Period $ 796,302 $ 134,256 $ 69,527 $ 1,000,085
Financial Section 121

Notes to Financial Statements

2010

Balance Sheet COBRA IUF All Others Total

Assets

Fund Balance with Treasury $ 714,680 $ 18,373 $ 25,997 $ 759,050

Taxes, Duties & Trade Receivables, Net 81,083 -- 658 81,741

Other Assets 93,469 57,061 126 150,656

Total Assets $ 889,232 $ 75,434 $ 26,781 $ 991,447

Liabilities and Net Position

Liabilities $ 99,658 $ -- $ 1,585 $ 101,243

Cumulative Results of Operations 789,574 75,434 25,196 890,204

Total Liabilities and Net Position $ 889,232 $ 75,434 $ 26,781 $ 991,447

Statement of Net Cost

Gross Cost $ 398,763 $ 592,087 $ 39,910 $ 1,030,760

Less: Earned Revenues -- -- (2,017) (2,017)

Net Cost of Operations $ 398,763 $ 592,087 $ 41,927 $ 1,032,777

Statement of Changes in Net Position

Net Position Beginning of Period $ 811,500 $ 159,267 $ 21,490 $ 992,257

Net Costs of Operations (398,763) (592,087) (41,927) (1,032,777)

Non-Exchange Revenue 382,665 -- 37,827 420,492

Net Transfers In/Out (1,383,045) (110,316) -- (1,493,361)

Other 1,377,217 618,570 7,806 2,003,593

Change in Net Position (21,926) (83,833) 3,706 (102,053)

Net Position End of Period $ 789,574 $ 75,434 $ 25,196 $ 890,204
122 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

19. Intra-Governmental Costs and Exchange Revenue

Intra-governmental costs represent exchange transactions made between two reporting entities within the Federal 

Government and are presented separately from costs with the public (exchange transactions made between the 

reporting entity and a non-Federal entity). Intra-governmental exchange revenue is disclosed separately from 

exchange revenue with the public. The criteria used for this classification requires that the intra-governmental 

expenses relate to the source of goods and services purchased by the reporting entity and not to the classification 

of related revenue. With intra-governmental costs, the buyer and seller are both Federal entities. If a Federal entity 

purchases goods or services from another Federal entity and sells them to the public, the exchange revenue would 

be classified as “with the public,” but the related costs would be classified as intra-governmental. The purpose 

of this classification is to enable the Federal Government to provide consolidated financial statements, and not to 

match public and intra-governmental revenue with costs that are incurred to produce public and intra-governmental revenue.
Financial Section 123

Notes to Financial Statements

The Consolidated Statement of Net Cost reflects intra-governmental and public cost and exchange revenue as summarized below for the years ended September 30, 2011 and 2010 (in thousands):

2011 2010

Border Security Inspections and Trade Facilitation at Ports of Entry

Intra-Governmental Costs $ 2,026,646 $ 1,922,623

Public Costs 4,493,235 4,648,417

Total Border Security Inspections and Trade Facilitation at 

Ports of Entry Costs 6,519,881 6,571,040

Less: Intra-Governmental Earned Revenue 86,882 104,890

Less: Public Earned Revenue 68,907 61,172

Total Border Security Inspections and Trade Facilitation at 

Ports of Entry Revenue 155,789 166,062

Border Security and Control Between Ports of Entry

Intra-Governmental Costs 1,519,180 1,310,262

Public Costs 3,368,143 3,167,883

Total Border Security and Control Between Ports of Entry Costs 4,887,323 4,478,145

Less: Intra-Governmental Earned Revenue 65,127 71,483

Less: Public Earned Revenue 51,653 41,688

Total Border Security and Control Between Ports of Entry Revenue 116,780 113,171

Border Security Fencing, Infrastructure and Technology

Intra-Governmental Costs 28,350 37,744

Public Costs 62,854 91,254

Total Border Security Fencing, Infrastructure and Technology Costs 91,204 128,998

Less: Intra-Governmental Earned Revenue 1,215 2,059

Less: Public Earned Revenue 964 1,201

Total Border Security Fencing, Infrastructure and Technology Revenue 2,179 3,260

Automation Modernization

Intra-Governmental Costs 67,963 78,309

Public Costs 150,681 189,331

Total Automation Modernization Costs 218,644 267,640

Less: Intra-Governmental Earned Revenue 2,913 4,272

Less: Public Earned Revenue 2,311 2,492

Total Automation Modernization Revenue 5,224 6,764

Air and Marine Operations

Intra-Governmental Costs 188,949 178,488

Public Costs 418,916 431,538

Total Air and Marine Operations Costs 607,865 610,026

Less: Intra-Governmental Earned Revenue 8,100 9,738

Less: Public Earned Revenue 6,424 5,679

Total Air and Marine Operations Revenue 14,524 15,417

Net Cost of Operations $ 12,030,421 $ 11,751,175
124 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

20. Sub-Organization Program Costs/

Program Costs by Segment

CBP is the unified border agency whose priority mission is the prevention of terrorism and terrorist weapons 

from entering the United States. CBP meets these responsibilities by: (1) enforcing the laws governing the flow of 

merchandise or commerce across U.S. borders; (2) assessing and collecting duties, taxes and fees on imported and 

other goods and services; and (3) enforcing drug-related and other U.S. laws and regulations on behalf of Federal 

agencies and/or in conjunction with various states, local agencies and foreign countries.

Operating costs are summarized in the Consolidated Statement of Net Cost by mission or major line of activity, as 

applicable to the reporting period. The net cost of operations is the gross (i.e. total) cost incurred by CBP less any 

exchange (i.e. earned) revenue.
Financial Section 125

Notes to Financial Statements

For the year ended September 30, 2011 (in thousands):

2011

Schedule of Net Cost 

by Program and 

Responsibility Segment

Protect our 

Nation from 

Dangerous 

People

Protect our 

Nation from 

Dangerous 

Goods

Protect Critical 

Infrastructure

Intra-Entity 

Eliminations

Consolidated 

Total

Border Security Inspections 

and Trade Facilitation at 

Ports of Entry

Gross Costs:

Passenger Processing $ 1,743,138 $ 1,945,652 $ -- $ 333,948 $ 3,354,842

Trade Compliance 209 2,482,474 -- 224,758 2,257,925

Anti-Terrorism 132,750 684,421 -- 73,979 743,192

Outbound -- 180,239 -- 16,317 163,922

Total Gross Costs 1,876,097 5,292,786 -- 649,002 6,519,881

Less: Earned Revenue 210,614 594,177 -- 649,002 155,789

Net Program Costs $ 1,665,483 $ 4,698,609 $ -- $ -- $ 6,364,092

Border Security and Control 

Between Ports of Entry

Gross Costs $ 5,373,817 $ -- $ -- $ 486,494 $ 4,887,323

Less: Earned Revenue 603,274 -- -- 486,494 116,780

Net Program Costs $ 4,770,543 $ -- $ -- $ -- $ 4,770,543

Border Security Fencing, 

Infrastructure and 

Technology

Gross Costs $ 100,283 $ -- $ -- $ 9,079 $ 91,204

Less: Earned Revenue 11,258 -- -- 9,079 2,179

Net Program Costs $ 89,025 $ -- $ -- $ -- $ 89,025

Automation Modernization

Gross Costs $ 20,242 $ 212,689 $ 7,477 $ 21,764 $ 218,644

Less: Earned Revenue 2,272 23,877 839 21,764 5,224

Net Program Costs $ 17,970 $ 188,812 $ 6,638 $ -- $ 213,420

Air and Marine Operations

Gross Costs $ 668,373 $ -- $ -- $ 60,508 $ 607,865

Less: Earned Revenue 75,032 -- -- 60,508 14,524

Net Program Costs $ 593,341 $ -- $ -- $ -- $ 593,341

Net Cost of Operations $ 7,136,362 $ 4,887,421 $ 6,638 $ -- $ 12,030,421
126 U.S. Customs and Border Protection • Performance and Accountability Report

For the year ended September 30, 2010 (in thousands):

2010

Schedule of Net Cost 

by Program and 

Responsibility Segment

Protect our 

Nation from 

Dangerous 

People

Protect our 

Nation from 

Dangerous 

Goods

Protect Critical 

Infrastructure

Intra-Entity 

Eliminations

Consolidated 

Total

Border Security Inspections 

and Trade Facilitation at 

Ports of Entry

Gross Costs:

Passenger Processing $ 1,749,823 $ 1,993,914 $ -- $ 375,574 $ 3,368,163

Trade Compliance 257 2,561,720 -- 257,019 2,304,958

Anti-Terrorism 131,734 696,262 -- 83,065 744,931

Outbound -- 170,048 -- 17,060 152,988

Total Gross Costs 1,881,814 5,421,944 -- 732,718 6,571,040

Less: Earned Revenue 231,616 667,164 -- 732,718 166,062

Net Program Costs $ 1,650,198 $ 4,754,780 $ -- $ -- $ 6,404,978

Border Security and Control 

Between Ports of Entry

Gross Costs $ 4,977,490 $ -- $ -- $ 499,345 $ 4,478,145

Less: Earned Revenue 612,516 -- -- 499,345 113,171

Net Program Costs $ 4,364,974 $ -- $ -- $ -- $ 4,364,974

Border Security Fencing, 

Infrastructure and 

Technology

Gross Costs $ 143,382 $ -- $ -- $ 14,384 $ 128,998

Less: Earned Revenue 17,644 -- -- 14,384 3,260

Net Program Costs $ 125,738 $ -- $ -- $ -- $ 125,738

Automation Modernization

Gross Costs $ 19,128 $ 271,543 $ 6,812 $ 29,843 $ 267,640

Less: Earned Revenue 2,354 33,415 838 29,843 6,764

Net Program Costs $ 16,774 $ 238,128 $ 5,974 $ -- $ 260,876

Air and Marine Operations

Gross Costs $ 678,048 $ -- $ -- $ 68,022 $ 610,026

Less: Earned Revenue 83,439 -- -- 68,022 15,417

Net Program Costs $ 594,609 $ -- $ -- $ -- $ 594,609

Net Cost of Operations $ 6,752,293 $ 4,992,908 $ 5,974 $ -- $ 11,751,175

Notes to Financial Statements
127

21. Non-Exchange Revenues and Transfers In/Out 

Without Reimbursement

Non-exchange Revenue represents amounts collected from user fees that CBP may retain and expend as authorized by law, and is identified in Non-exchange Revenue and Other. Transfers In/Out Without Reimbursement are 

amounts of funds collected and transferred from CBP receipt accounts to expenditure accounts within CBP and to 

other Federal agencies.

Reclassification

In FY 2011, the presentation of the Statement of Changes in Net Position was changed to conform with Treasury 

Financial Management requirements. The FY 2011 Non-exchange Revenue was divided between Budgetary and 

Other Financing Sources. Non-exchange Revenue reported under Budgetary Financing Sources includes Land 

Border Inspection Fees, Immigration Enforcement Fees, International Registered Traveler Program Fees, Electronic 

Systems for Travel Authorization Fees, Customs User Fees, and amounts from Abandoned and Seized Goods. These 

amounts are identified as Budgetary Financing Sources because CBP recognizes budget authority related to the collections. Non-exchange Revenue reported under Other Financing Sources includes Immigration User Fees, User 

Fees for Small Airports, and Customs Merchandise Processing Fees, which represent revenue reported in receipt 

accounts for which CBP does not have available budgetary authority. Also reported under Other Financing Sources 

is the accounts receivable related portion of Customs User Fees.

For comparability with FY 2011, the FY 2010 Statement of Changes in Net Position and associated notes have 

been updated.

Financial Section

Notes to Financial Statements
128 U.S. Customs and Border Protection • Performance and Accountability Report

Notes to Financial Statements

22. Apportionment Categories of Obligations Incurred: 

Direct vs. Reimbursable Obligations

Apportionment categories are determined in accordance with the guidance provided in OMB Circular A-11, 

Preparation, Submission and Execution of the Budget. Category A represents resources apportioned for calendar quarters. 

Category B represents resources apportioned for: other time periods, activities, projects, objectives or any combination thereof (in thousands).

2011 Apportionment 

Category A

Apportionment 

Category B

Exempt from 

Apportionment Total

Obligations Incurred - Direct $ 8,283,686 $ 3,767,571 $ 1,188,774 $ 13,240,031 

Obligations Incurred - Reimbursable 1,347,191 141,094 -- 1,488,285 

Total Obligations Incurred $ 9,630,877 $ 3,908,665 $ 1,188,774 $ 14,728,316 

2010 Apportionment 

Category A

Apportionment 

Category B

Exempt from 

Apportionment Total

Obligations Incurred - Direct $ 8,070,018 $ 4,508,410 $ 975,598 $ 13,554,026

Obligations Incurred - Reimbursable 1,460,425 130,088 -- 1,590,513

Total Obligations Incurred $ 9,530,443 $ 4,638,498 $ 975,598 $ 15,144,539

23. Appropriations

As of September 30, 2011 and 2010, the Combined Statements of Budgetary Resources consist of appropriations 

totaling $12.4 billion and $12.9 billion, respectively. This differs from the Consolidated Statements of Changes 

in Net Position as of September 30, 2011 and 2010, which consist of appropriations received totaling $8.3 billion 

and $9.0 billion, respectively. This difference is due to CBP’s non-entity activity, which as of September 30, 2011 

and 2010 consists of $1.3 billion and $1.5 billion, respectively, for Refund and Drawback activity, as well as $2.8 

billion and $2.4 billion, respectively, for user/inspection fees and subsidy activity, which are not reported on the 

Consolidated Statements of Changes in Net Position.

Permanent indefinite appropriations refer to the appropriations that result from permanent public laws, which 

authorize CBP to retain certain receipts. The amount appropriated depends upon the amount of the receipts rather 

than on a specific amount. CBP has a permanent and indefinite appropriation, which is used to disburse tax and 

duty refunds and duty drawbacks. Although funded through an appropriation, refund and drawback activity is, in 

most instances, reported as a custodial activity. Refunds are custodial revenue-related activity in that refunds are a 

direct result of importer overpayments of duties, taxes and fees. Federal tax revenue received from taxpayers is not 

available for use in the operation of CBP and is not reported on the Consolidated Statements of Net Cost. Likewise, 

the refunds of overpayments are not available for use by CBP in its operations. Refunds and drawback disbursements totaled $1.3 billion for fiscal years ended September 30, 2011 and 2010, and are presented as a use of custodial revenue on the Consolidated Statements of Custodial Activity. This appropriation is not subject to budgetary 

ceilings established by Congress. CBP’s refund payable at year-end is not subject to funding restrictions. Refund 

payment funding is recognized as appropriations are used.
Financial Section 129

Notes to Financial Statements

24. Legal Arrangements Affecting the Use of 

Unobligated Balances

Unobligated balances, whose period of availability has expired, are not available to fund new obligations. Expired 

unobligated balances are available to pay for current period adjustments to obligations incurred prior to expiration. 

For a fixed appropriation account, the balance can be carried forward for five fiscal years after the period of availability ends. For a no-year account, the unobligated balance is carried forward indefinitely until (1) specifically 

rescinded by law; or (2) the head of the agency concerned or the President determines that the purposes for which 

the appropriation was made have been carried out and disbursements have not been made against the appropriation for two consecutive years.

Included in the cumulative results of operations for special funds is $1.0 billion at September 30, 2011, that represents CBP’s authority to assess and collect user fees relating to merchandise and passenger processing, to assess 

and collect fees associated with the services performed at certain small airports or other facilities, retain amounts 

needed to offset costs associated with collecting duties, and taxes and fees for the government of Puerto Rico. 

These special fund balances are restricted by law and in their use to offset specific costs incurred by CBP. The 

passenger fees in the COBRA User Fee Account, totaling approximately $729.2 million, as of September 30, 2011 

is restricted by law in its use to offset specific costs incurred by CBP and are available to the extent provided in 

Department Appropriations Acts.

The entity trust fund balances result from CBP’s authority to use the proceeds from general order items sold at 

auction to offset specific costs incurred by CBP relating to their sale, to use available funds in the Salaries and 

Expense Fund to offset specific costs for expanding border and port enforcement activities, and to use available 

funds from the Harbor Maintenance Trust Fund to offset administrative expenses related to the collection of the 

Harbor Maintenance Fee.
130 U.S. Customs and Border Protection • Performance and Accountability Report

25. Explanation of Differences Between the SBR and the 

Budget of the U.S. Government

The table below documents the material differences between the FY 2010 Combined Statement of Budgetary 

Resources and the actual amounts reported for FY 2010 in the Budget of the United States Government. Since the 

FY 2011 financial statements are reported prior to the Budget of the United States Government, CBP is reporting 

for FY 2010 only. Typically, the Budget of the United States Government with the FY 2011 actual data is published 

in February of the subsequent year. Once published, the FY 2011 actual data will be available on the OMB web 

site, www.whitehouse.gov/omb.

Differences between the SBR and the Budget of the U.S. Government (in thousands):

2010 Budgetary 

Resources

Obligations 

Incurred

Distributed 

Offsetting 

Receipts

Net Outlays

Combined Statement of 

Budgetary Resources $ 17,791,015 $ 15,144,539 $ 2,468,799 $ 10,134,906

Differences:

Expired Appropriation not Included in 

President’s Budget (321,558) (68,904) -- --

Refunds and Drawbacks not Included in 

President’s Budget (972,231) (972,231) -- (968,565)

Injured Domestic Industries not Included 

in President’s Budget (20X5688) (805,981) (259,065) -- (259,065)

Offsetting Receipts not Included in the 

Treasury Annual Report -- -- 53,972 2,468,799

Miscellaneous -- (1,000) 1,000 --

Total Differences (2,099,770) (1,301,200) 54,972 1,241,169

Budget of the U.S. Government $ 15,691,245 $ 13,843,339 $ 2,523,771 $ 11,376,075

Expired authority represents funding for which CBP no longer has budget authority. Refund and Drawback and the 

Injured Domestic Industries activity is exempt from apportionment per OMB Circular A-11 and therefore is not 

included in the President’s Budget. CBP Offsetting Distributed Receipts include receivable accruals and undeposited 

collections which are not included in the President’s Budget.

26. Undelivered Orders at the End of Period

An undelivered order exists when a valid obligation has occurred and funds have been reserved, but the goods or 

services have not been delivered and have not been prepaid. Undelivered orders for the period ended September 

30, 2011 and 2010 (in thousands):

2011 2010

Unpaid $ 3,997,996 $ 4,180,681

Upward/Downward Adjustment of Prior Period (569,687) (424,410)

Total Undelivered Orders at the End of Period $ 3,428,309 $ 3,756,271

Notes to Financial Statements
Financial Section 131

27. Custodial Revenues

Custodial Revenue consists of duties, user fees, fines and penalties, refunds and drawback overpayments and 

interest associated with import/export activity which have been established as a specifically identifiable, legally 

enforceable claim and remain uncollected as of year-end. These receivables are net of amounts deemed uncollectible which were determined by considering the debtor’s payment record and willingness to pay, the probable 

recovery of amounts from secondary sources, such as sureties and an analysis of aged receivable activity. Primarily, 

revenue collections result from current fiscal year activity.

Disbursements from the Refunds and Drawback account for the fiscal year ended September 30, 2011 and 2010 

(in thousands):

2011 2010

Refunds $ 661,562 $ 562,749

Drawback 686,066 716,856

Total $ 1,347,628 $ 1,279,605

Amounts refunded during FY 2011 and 2010 identified by entry year consist of the following (in thousands):

Entry Year 2011 Entry Year 2010

2011 $ 719,917 2010 $ 767,090

2010 270,903 2009 153,707

2009 89,591 2008 74,424

2008 67,732 2007 55,375

Prior Years 199,485 Prior Years 229,009

Total $ 1,347,628 Total $ 1,279,605

The total amounts of antidumping and countervailing duties vary from year to year, depending on decisions from 

Department of Commerce. Antidumping and countervailing duty refunds (included in total refunds presented 

above) and associated interest refunded for the fiscal years ended September 30, 2011 and 2010, consisted of the 

following (in thousands):

2011 2010

Antidumping and Countervailing Duty Refunds $ 113,932 $ 39,923

Interest 7,945 2,906

Total $ 121,877 $ 42,829

Notes to Financial Statements
132 U.S. Customs and Border Protection • Performance and Accountability Report

28. Reconciliation of Net Cost of Operations to Budget

The following table presents CBP’s reconciliation of net cost of operations to budgetary accounts for the years 

ended September 30, 2011 and 2010 (in thousands). The balance of “Other Resources – Other” has been presented 

in accordance with the reclassification disclosed in Note 21.

2011 2010

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations Incurred $ 14,728,316 $ 15,144,539

Less: Spending Authority from Offsetting Collections and Recoveries 2,066,191 2,020,914

Obligations Net of Offsetting Collections and Recoveries 12,662,125 13,123,625

Less: Offsetting Receipts 2,764,695 2,468,799

Net Obligations 9,897,430 10,654,826

Other Resources

Donations and Forfeiture of Property -- 3,366

Transfers In/Out Without Reimbursement 40,556 75,242

Imputed Financing from Costs Absorbed by Others 710,128 570,393

Other 2,137,986 1,945,935

Net Other Resources Used to Finance Activities 2,888,670 2,594,936

Total Resources Used to Finance Activities $ 12,786,100 $ 13,249,762

Resources Used to Finance Items Not Part of the Net Cost of Operations

Change in Budgetary Resources Obligated for Goods, Services and Benefits 

Ordered, But Not Yet Provided $ (397,968) $ 538,419

Resources That Fund Expenses Recognized in Prior Periods 5,148 17,050

Budgetary Offsetting Collections and Receipts That Do Not Affect Net Cost 

of Operations (561,946) (465,205)

Resources That Finance the Acquisition of Assets or Liquidation of Liabilities 1,025,765 1,126,092

Tax Revenue Refunds and Other Resources or Adjustments to Net Obligated 

Resources That Do Not Affect Net Cost of Operations 1,293,721 1,252,923

Total Resources Used to Finance Items Not Part of the Net Cost of Operations $ 1,364,720 $ 2,469,279

Total Resources Used to Finance the Net Cost of Operations $ 11,421,380 $ 10,780,483

Components of the Net Cost of Operations That Will Not Require or 

Generate Resources in the Current Period:

Components Requiring or Generating Resources in Future Periods

Increase in Annual Leave Liability and Environmental Liability $ 25,902 $ 63,178

Change in Actuarial FECA Liability, Legal Contingent Liabilities and Other 53,831 370,715

Total Components of Net Cost of Operations That Will Require or 

Generate Resources in Future Periods $ 79,733 $ 433,893

Components Not Requiring or Generating Resources

Depreciation and Amortization $ 610,797 $ 547,299

Revaluation of Assets or Liabilities (10,360) (10,924)

Other Non-Budgetary Resources (71,129) 424

Total Components of Net Cost of Operations That Will Not Require or 

Generate Resources $ 529,308 $ 536,799

Total Components of Net Cost of Operations That Will Not Require or 

Generate Resources in the Current Period $ 609,041 $ 970,692

Net Cost of Operations $ 12,030,421 $ 11,751,175

Notes to Financial Statements
Financial Section 133

Deferred Maintenance

Deferred maintenance is maintenance that was not performed when it should have been or was scheduled to be 

performed, and has been delayed until a future period. Maintenance includes preventive maintenance, normal 

repairs, replacement of parts and structural components, and other activities needed to preserve the asset so that it 

will continue to provide acceptable service and achieve its useful life.

An assessment of “fair” means the facility/equipment condition meets minimum standards but requires additional 

maintenance or repair to prevent further deterioration, increase operating efficiency and to achieve normal life 

expectancy. An assessment of “good” means the facility/equipment condition is above minimum standards, but 

requires preventative maintenance or normal repairs to maintain the design intent of the building or equipment 

so that it continues to provide acceptable service and achieves the expected useful life. An assessment of “poor” 

means the facility/equipment does not meet most maintenance standards and requires frequent repairs to prevent 

accelerated deterioration and to provide a minimal level of operating function. In some cases, this includes condemned or failed facilities. Deferred maintenance on property, plant and equipment as measured by condition 

assessment survey, is comprised of (in thousands):

2011

Condition 

Assessment

Deferred 

Maintenance

Building and Structures Poor to Good $ 94,000

Vehicles Good 31

Equipment Good 42

Multi-Use Heritage Assets Good --

Collections (documents and artifacts) Poor to Good --

Total $ 94,073

2010

Condition 

Assessment

Deferred 

Maintenance

Building and Structures Poor to Good $ 98,527

Vehicles Good 68

Equipment Good 32

Multi-Use Heritage Assets Good --

Collections (documents and artifacts) Poor to Good --

Total $ 98,627

Statement of Budgetary Resources (SBR)

The total Budgetary Resources of $17.0 billion for FY 2011 includes new budget authority, unobligated balances 

at the beginning of the year and transferred in/out, spending authority from offsetting collections, recoveries of 

prior year obligations and adjustments.

Required Supplementary Information
134 U.S. Customs and Border Protection • Performance and Accountability Report

Schedule of Budgetary Resources by Major Budget Accounts:

As of September 30, 2011 (in thousands): Salaries & 

Expense

Air & 

Marine BSFIT Construction

Automation Other Total

Budgetary Resources 

Unobligated Balances Brought Forward, Oct 1 $ 549,343 $ 135,464 $ 324,659 $ 225,908 $ 108,113 $1,302,989 $ 2,646,476

Recoveries of Prior Year Obligations 237,751 55,455 103,071 176,085 26,884 8,170 607,416

Budget Authority:

Appropriations 6,654,080 516,326 574,173 260,000 336,575 4,083,267 12,424,421

Spending Authority from Offsetting 

Collections:

Earned

Collected 1,432,079 2,172 -- -- -- 30,387 1,464,638

Change in Receivable from 

Federal Sources 890 (259) -- -- -- 525 1,156

Change in Unfilled Customer Orders:

Advance Received (697) -- -- -- -- -- (697)

Without Advance from Federal Sources (6,166) 41 -- -- -- (3,423) (9,548)

Expenditure Transfers from Trust Funds 3,226 -- -- -- -- -- 3,226

Subtotal 8,083,412 518,280 574,173 260,000 336,575 4,110,756 13,883,196

Non-Expenditure Transfers, Net 1,877,521 -- (20,491) -- 20,491 (1,557,541) 319,980

Temporarily Not Available -- -- -- -- -- (3,110) (3,110)

Permanently Not Available (120,445) (1,033) (130,148) (110,366) (10,673) (84,605) (457,270)

Total Budgetary Resources $ 10,627,582 $ 708,166 $ 851,264 $ 551,627 $ 481,390 $ 3,776,659 $16,996,688

Status of Budgetary Resources

Obligations Incurred:

Direct $ 8,875,601 $ 627,383 $ 447,383 $ 499,410 $ 391,353 $2,398,901 $13,240,031

Reimbursable 1,456,655 928 -- -- -- 30,702 1,488,285

Total Obligations Incurred 10,332,256 628,311 447,383 499,410 391,353 2,429,603 14,728,316

Unobligated Balance:

Apportioned 3,170 -- 20 -- -- -- 3,190

Unobligated Balance Not Available 292,158 79,856 403,859 52,217 90,037 1,347,055 2,265,182

Total Status of Budgetary Resources $ 10,627,584 $ 708,167 $ 851,262 $ 551,627 $ 481,390 $ 3,776,658 $16,996,688

Change in Obligated Balances

Obligated Balance, Net

Unpaid Obligations Brought Forward, Oct 1 $ 2,040,587 $ 654,213 $ 739,478 $1,231,305 $ 214,525 $ 181,332 $ 5,061,440

Uncollected Customer Payments from 

Federal Sources Brought Forward, Oct 1 (167,925) (519) -- -- -- (3,844) (172,288)

Total Unpaid Obligated Balance, Net 1,872,662 653,694 739,478 1,231,305 214,525 177,488 4,889,152

Obligations Incurred, Net 10,332,256 628,311 447,383 499,410 391,353 2,429,603 14,728,316

Gross Outlays (10,283,652) (611,290) (395,743) (479,194) (334,254) (2,365,040) (14,469,173)

Recoveries of Prior Year Unpaid Obligations (237,751) (55,455) (103,071) (176,085) (26,884) (8,170) (607,416)

Change in Uncollected Customer Payments 

from Federal Sources 5,276 218 -- -- -- 2,898 8,392

Obligated Balance, Net, End of Period

Unpaid Obligations 1,851,441 615,779 688,047 1,075,436 244,740 237,724 4,713,167

Uncollected Customer Payments from 

Federal Sources (162,650) (301) -- -- -- (945) (163,896)

Total, Unpaid Obligated Balance, Net, 

End of Period 1,688,791 615,478 688,047 1,075,436 244,740 236,779 4,549,271

Net Outlays

Gross Outlays 10,283,652 611,290 395,743 479,194 334,254 2,365,040 14,469,173

Offsetting Collections (1,434,608) (2,172) -- -- -- (30,387) (1,467,167)

Distributed Offsetting Receipts -- -- -- -- -- (2,764,695) (2,764,695)

Total Net Outlays $ 8,849,044 $ 609,118 $ 395,743 $479,194 $ 334,254 $ (430,042) $ 10,237,311

Required Supplementary Information (Unaudited)
135

Schedule of Budgetary Resources by Major Budget Accounts:

As of September 30, 2010 (in thousands): Salaries & 

Expense

Air & 

Marine BSFIT Construction

Automation Other Total

Budgetary Resources 

Unobligated Balances Brought Forward, Oct 1 $ 465,948 $ 141,609 $ 407,491 $ 454,657 $ 84,806 $ 1,511,465 $ 3,065,976

Recoveries of Prior Year Obligations 194,813 42,410 28,471 171,057 16,036 5,226 458,013 

Budget Authority:

Appropriations 6,932,342 551,826 814,000 325,570 422,445 3,897,813 12,943,996

Spending Authority from Offsetting 

Collections:

Earned -- -- -- -- -- -- --

Collected 1,546,724 9,868 -- -- -- 29,716 1,586,308

Change in Receivable from 

Federal Sources (17,059) (58) -- -- -- (3,776) (20,893) 

Change in Unfilled Customer Orders:

Advance Received 1,054 -- -- -- -- -- 1,054

Without Advance from Federal Sources (10,291) 160 -- -- -- 3,337 (6,794)

Expenditure Transfers from Trust Funds 3,226 -- -- -- -- -- 3,226

Subtotal 8,455,996 561,796 814,000 325,570 422,445 3,927,090 14,506,897

Non-Expenditure Transfers, Net 1,684,947 -- -- -- -- (1,388,377) 296,570

Permanently Not Available (58,597) -- (100,000) -- -- (377,844) (536,441)

Total Budgetary Resources $ 10,743,107 $ 745,815 $ 1,149,962 $ 951,284 $ 523,287 $ 3,677,560 $ 17,791,015

Status of Budgetary Resources

Obligations Incurred:

Direct $ 8,642,522 $ 600,373 $ 825,303 $ 725,377 $ 415,174 $2,345,277 $13,554,026

Reimbursable 1,551,242 9,977 -- -- -- 29,294 1,590,513

Total Obligations Incurred 10,193,764 610,350 825,303 725,377 415,174 2,374,571 15,144,539

Unobligated Balance:

Apportioned 16,679 29 13,457 33,382 -- -- 63,547

Unobligated Balance Not Available 532,664 135,435 311,202 192,526 108,113 1,302,989 2,582,929

Total Status of Budgetary Resources $ 10,743,107 $ 745,814 $ 1,149,962 $ 951,285 $ 523,287 $ 3,677,560 $ 17,791,015

Change in Obligated Balances

Obligated Balance, Net

Unpaid Obligations Brought Forward, Oct 1 $ 1,954,209 $ 743,013 $ 504,440 $ 937,408 $ 241,647 $ 188,490 $ 4,569,207

Uncollected Customer Payments from 

Federal Sources Brought Forward, Oct 1 (195,275) (417) -- -- -- (4,283) (199,975)

Total Unpaid Obligated Balance, Net 1,758,934 742,596 504,440 937,408 241,647 184,207 4,369,232

Obligations Incurred, Net 10,193,764 610,350 825,303 725,377 415,174 2,374,571 15,144,539

Gross Outlays (9,912,573) (656,740) (561,794) (260,423) (426,260) (2,376,503) (14,194,293)

Recoveries of Prior Year Unpaid Obligations (194,813) (42,410) (28,471) (171,057) (16,036) (5,226) (458,013)

Change in Uncollected Customer Payments 

from Federal Sources 27,350 (102) -- -- -- 439 27,687

Obligated Balance, Net, End of Period

Unpaid Obligations 2,040,588 654,212 739,478 1,231,305 214,525 181,332 5,061,440

Uncollected Customer Payments from 

Federal Sources (167,926) (518) -- -- -- (3,844) (172,288)

Total, Unpaid Obligated Balance, Net, 

End of Period 1,872,662 653,694 739,478 1,231,305 214,525 177,488 4,889,152

Net Outlays

Gross Outlays 9,912,573 656,740 561,794 260,423 426,260 2,376,503 14,194,293

Offsetting Collections (1,551,004) (9,868) -- -- -- (29,716) (1,590,588)

Distributed Offsetting Receipts -- -- -- -- -- (2,468,799) (2,468,799)

Total Net Outlays $ 8,361,569 $ 646,872 $ 561,794 $ 260,423 $ 426,260 $ (122,012) $10,134,906

Required Supplementary Information (Unaudited)

Financial Section
136 U.S. Customs and Border Protection • Performance and Accountability Report

Custodial Activity

Substantially all duty, tax and fee revenues collected by CBP are remitted to various General Fund accounts maintained by Treasury and U.S Department of Agriculture. Treasury further distributes these revenues to other Federal 

agencies in accordance with various laws and regulations. CBP transfers the remaining revenue (less than one percent of revenues collected) directly to other Federal agencies, the Governments of Puerto Rico and the U.S. Virgin 

Islands. Refunds of revenues collected from import/export activities are recorded in separate accounts established 

for this purpose and are funded through permanent indefinite appropriations. These activities reflect the nonentity, or custodial, responsibilities that CBP, as an agency of the Federal government, has been authorized by law 

to enforce.

CBP reviews selected documents to ensure all duties, taxes and fees owed to the Federal government are paid and 

to ensure regulations are followed. If CBP determines that duties, taxes, fees, fines or penalties are due in addition 

to estimated amounts previously paid by the importer/violator, the importer/violator is notified of the additional 

amount due. CBP regulations allow the importer/violator to file a protest on the additional amount due for review 

by the Port Director. A protest allows the importer/violator the opportunity to submit additional documentation 

supporting their claim of a lower amount due or to cancel the additional amount due in its entirety. During the 

protest period, CBP does not have a legal right to importer/violator’s assets, and consequently CBP recognizes 

accounts receivable only when the protest period has expired or an agreement is reached. For FY 2011 and 2010 

CBP had the legal right to collect $2.7 billion and $2.5 billion of receivables. In addition, there were $2.3 billion 

and $2.4 billion representing records still in the protest phase for FY 2011 and 2010, respectively. CBP recognized 

as write-offs $109 million and $42.8 million of assessments that the Department has statutory authority to collect at September 30, 2011 and 2010, but has no future collection potential. Most of this amount represents fines, 

penalties and interest.

Required Supplementary Information (Unaudited)
Financial Section 137

Independent Auditor’s Report

The independent audit of CBP’s consolidated financial statement was conducted by KPMG LLP, and follows in 

its entirety.

Auditor’s Report
138 U.S. Customs and Border Protection • Performance and Accountability Report
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Other Accompanying 

Information
166 U.S. Customs and Border Protection • Performance and Accountability Report

Revenue Gap

The Entry Summary of Trade Compliance Measurement (TCM) program collects objective statistical data to determine the compliance level of commercial imports with U.S. trade laws, regulations and agreements, and is used to 

produce a dollar amount for Estimated Net Under-collections, and a percent of Revenue Gap. The Revenue Gap is a 

calculated estimate that measures potential loss of revenue owing to noncompliance with trade laws, regulations, 

and trade agreements using a statistically valid sample of the revenue losses and overpayments detected during 

TCM entry summary reviews conducted throughout the year. For FY 2010 and 2009, the estimated Revenue Gap 

was $238 million and $285 million, respectively. CBP calculated the preliminary FY 2011 estimated Revenue Gap 

to be $331 million. As a percentage, the preliminary Revenue Gap for FY 2011 was 0.88 percent of all collectable revenue for the year. The estimated over-collection and under-collection amounts due to noncompliance for 

FY 2011 and FY 2010 were $71 million and $401 million and $123 million and $361 million, respectively. The 

overall trade compliance rate for FY 2010 and FY 2009 is 98.63 percent and 98.2 percent, respectively. The preliminary overall compliance rate for FY 2011 is 97.7 percent.

The final overall trade compliance rate and estimated revenue gap for FY 2011 will be issued in February 2012.

Petitioned and Protested Schedule

An analysis of the changes in petitioned and protested assessed amounts during FY 2011 and 2010 is as follows 

(in thousands):

2011

Balance 

October 1

Additional 

Assessments

Protest in Favor 

of Debtor

Net Reduction 

Administrative 

Process

Additional 

Receivable

Balance 

September 30

Duties $ 250,802 $ 99,114 $ (12,043) $ (125,873) $ -- $ 212,000 

Taxes 4,899 (4,018) (22) (171) -- 688

Fees 720 1,997 (88) (1,462) -- 1,167

Fines/Penalties 1,355,194 681,399 (267,234) (184,199) (1,419) 1,583,741

Interest 235,929 (12,672) (8,120) (29,801) -- 185,336

Antidumping/

Countervailing 

Duty

567,345 (169,573) (26,295) (78,235) -- 293,242

Refunds and 

Drawback 6,375 2,592 (108) (2,049) -- 6,810

Totals $ 2,421,264 $ 598,839 $ (313,910) $ (421,790) $ (1,419) $ 2,282,984

Other Accompanying Information
167

Other Accompanying Information (Unaudited)

2010

Balance 

October 1

Additional 

Assessments

Protest in Favor 

of Debtor

Net Reduction 

Administrative 

Process

Additional 

Receivable

Balance 

September 30

Duties $ 262,455 $ 104,106 $ (27,596) $ (88,163) $ -- $ 250,802

Taxes 8,545 1,115 (2,229) (2,532) -- 4,899

Fees 1,208 1,365 (69) (1,784) -- 720

Fines/Penalties 1,242,660 923,939 (524,756) (156) (286,493) 1,355,194

Interest 201,511 60,919 (5,742) (20,759) -- 235,929

Antidumping/

Countervailing 

Duty

442,329 186,927 (4,725) (57,186) -- 567,345

Refunds and 

Drawback 12,194 10,139 (1,189) (14,769) -- 6,375

Totals $ 2,170,902 $ 1,288,510 $(566,306) $ (185,349) $ (286,493) $ 2,421,264

CBP reviews selected entry documentation to determine whether importer payment estimates of duties, taxes and 

fees were accurate or whether additional supplemental amounts are owed and should be billed. CBP regulations 

allow the importer 90 days (or 180 days for entries on or after 12/18/2004) from the bill date to file a protest and 

application with the Port Director challenging the assessment of supplemental duties, taxes and fees and requesting further review of the protest by CBP Office of Regulations and Rulings. If the Port Director denies the protest 

and application for further review, the protestor has an additional 60 days from the denial date for a review of the 

application by the Commissioner of CBP. Consequently, CBP recognizes accounts receivables only when the protested period has elapsed or when a protest decision has been rendered in CBP’s favor.

Additionally, importers and their sureties also have the option to petition for relief after receipt of CBP’s notice that 

a fine or penalty has been assessed when a violation of law or regulation is discovered. The importer or surety has 

60 days to file a petition for relief or make payment of the assessed amount. If a petition is received and CBP finds 

there are extenuating circumstances such as an incorrect assessment, which warrants mitigation, relief is granted 

as prescribed by CBP’s mitigation guidelines and directives. Consequently, CBP recognizes accounts receivables 

only when the petition period has elapsed or when a petition decision has been rendered.

Accounts Receivable with Public, Net

An aging of Accounts Receivable with the Public as of September 30, 2011 and 2010 is as follows (in thousands):

Aged Period

2011 < or = 90 days 91 days –1 year 1–2 years 2–3 years 3+ years Total

Reimbursable Services $ 754 $ 2,262 $ 669 $ 1,823 $ 445 $ 5,953 

User Fees 134,891 196 2,349 2,873 15,819 156,128

Gross Receivables 135,645 2,458 3,018 4,696 16,264 162,081

Less Uncollectible 

Amounts -- -- 686 2,010 16,408 19,104 

Net Receivables $ 135,645 $ 2,458 $ 2,332 $ 2,686 $ (144) $ 142,977 

Other Accompanying Information
168 U.S. Customs and Border Protection • Performance and Accountability Report

Other Accompanying Information (Unaudited)

Aged Period

2010 < or = 90 days 91 days –1 year 1–2 years 2–3 years 3+ years Total

Reimbursable Services $ 389 $ 1,167 $ 325 $ 463 $ 1,563 $ 3,907

User Fees 145,614 1,357 4,268 3,581 12,632 167,452

Gross Receivables 146,003 2,524 4,593 4,044 14,195 171,359

Less Uncollectible 

Amounts -- 132 2,736 3,133 11,387 17,388

Net Receivables $ 146,003 $ 2,392 $ 1,857 $ 911 $ 2,808 $ 153,971

Taxes, Duties and Trade Receivables, Net

An analysis of the changes in accounts receivable during FY 2011 and 2010 is as follows (in thousands):

2011

Receivable 

Category

Balance 

October 1

Receivable 

Recorded During 

the Fiscal Year

Collections Write-offs Adjustments Balance 

September 30

Duties $ 2,161,519 $ 17,639,980 $(15,925,225) $ (718) $ (1,522,836) $ 2,352,720

Excise Taxes 121,282 815,445 (712,529) (1) (59,872) 164,325 

Fees 133,176 1,615,100 (1,532,181) -- (67,616) 148,479

Fines/

Penalties 454,475 784,709 (56,649) (108,223) (637,171) 437,141

Interest 350,652 165,083 (8,881) (7) (53,777) 453,070 

Antidumping/ 

Countervailing 

Duty

551,270 689,341 (225,565) -- (129,959) 885,087 

Refunds/

Drawback 586 715 (502) -- (142) 657 

Totals $ 3,772,960 $ 21,710,373 $(18,461,532) $(108,949) $ (2,471,373) $ 4,441,479

Less: 

Uncollectible 

Amounts 1,314,313 1,709,714

Net 

Receivables $ 2,458,647 $ 2,731,765
169

Other Accompanying Information (Unaudited)

2010

Receivable 

Category

Balance 

October 1

Receivable 

Recorded During 

the Fiscal Year

Collections Write-offs Adjustments Balance 

September 30

Duties $ 1,649,664 $14,858,083 $ (13,310,090) $ (3,574) $ (1,032,564) $ 2,161,519

Excise Taxes 105,481 1,222,065 (1,157,591) -- (48,673) 121,282

Fees 117,151 1,370,316 (1,292,558) -- (61,733) 133,176

Fines/

Penalties 521,194 637,542 (57,933) (39,249) (607,079) 454,475

Interest 291,084 78,583 (4,886) (8) (14,121) 350,652

Antidumping/ 

Countervailing 

Duty

420,950 330,245 (180,549) -- (19,376) 551,270

Refunds/

Drawback 448 448 (290) -- (20) 586

Totals $ 3,105,972 $ 18,497,282 $(16,003,897) $ (42,831) $ (1,783,566) $ 3,772,960

Less: 

Uncollectible 

Amounts 1,232,270 1,314,313

Net 

Receivables $ 1,873,702 $ 2,458,647 

An aging of accounts receivables as of September 30, 2011 and 2010 is as follows (in thousands):

Aged Period

2011 < or = 90 days 91 days –

1 year 1–2 years 2–3 years 3+ years Total

Duties $ 2,187,728 $ 7,676 $ 23,046 $ 21,968 $ 112,302 $ 2,352,720

Excise Taxes 155,031 26 1,851 1,589 5,828 164,325 

User Fees 147,411 95 183 429 361 148,479 

Fines/Penalties 51,547 61,810 77,719 97,460 148,605 437,141 

Interest 69 26,750 42,243 55,438 328,570 453,070 

Antidumping/ 

Countervailing Duty 1,555 126,917 198,524 159,727 398,364 885,087 

Refunds and Drawback 2 208 4 171 272 657

Gross Receivables 2,543,343 223,482 343,570 336,782 994,302 4,441,479 

Less: Uncollectible 

Amounts 47,757 193,995 302,160 293,952 871,850 1,709,714

Net Receivables $ 2,495,586 $ 29,487 $ 41,410 $ 42,830 $ 122,452 $ 2,731,765 

Aged Period

2010 < or = 90 days 91 days –

1 year 1–2 years 2–3 years 3+ years Total

Duties $ 2,008,411 $ 9,656 $ 7,848 $ 23,338 $ 112,266 $ 2,161,519

Excise Taxes 114,802 32 16 2 6,430 121,282

User Fees 136,893 1,436 321 80 (5,554) 133,176

Fines/Penalties 87,539 66,465 100,579 48,482 151,410 454,475

Interest -- 10,321 39,907 21,870 278,554 350,652

Antidumping/ 

Countervailing Duty -- 39,093 152,038 44,373 315,766 551,270

Refunds and Drawback -- 89 190 14 293 586

Gross Receivables 2,347,645 127,092 300,899 138,159 859,165 3,772,960

Less: Uncollectible 

Amounts 76,941 103,473 251,906 113,481 768,512 1,314,313

Net Receivables $ 2,270,704 $ 23,619 $ 48,993 $ 24,678 $ 90,653 $ 2,458,647

Other Accompanying Information
170 U.S. Customs and Border Protection • Performance and Accountability Report

Other Accompanying Information (Unaudited)

CBP Collections by Category

(Dollars in thousands)

Duties

2007

(Unaudited)

2008

(Unaudited)

2009

(Unaudited)

2010

(Unaudited)

2011

(Unaudited)

Consumption Entries $ 26,477,180 $ 27,543,807 $ 22,759,054 $ 25,312,699 $ 29,522,341

Warehouse Withdrawals 80,858 76,910 61,638 54,214 41,907

Mail Entries 4,015 4,223 3,132 3,354 3,159

Passenger Baggage Entries 4,528 3,888 3,217 3,616 3,652

Crew Baggage Entries 9 8 5 9 6

Military Baggage Entries 1 1 2 2 3

Informal Entries 56,026 54,537 47,596 56,200 63,689

Vessel Repair Entries 22,938 43,315 39,240 21,521 30,381

Other Duties 57,122 41,277 33,237 9,747 8,359

Total Duties 26,702,677 27,767,966 22,947,121 25,461,362 29,673,497

Miscellaneous

Violations of CBP Law 56,434 69,993 59,709 60,380 61,532

Testing, Inspecting & Grading 34 5,114 39 58 64

Miscellaneous Taxes 19,726 20,082 19,413 20,382 21,845

USDA Collections 115,168 112,319 110,425 120,637 120,704

Harbor Maintenance Fee 1,261,681 1,467,405 1,125,008 1,221,712 1,469,109

Fees 6,695 8,134 8,397 7,817 5,904

User Fee Account 2,436,087 2,633,600 2,258,027 2,440,275 2,779,483

Unclaimed Funds 479 372 276 188 164

Recoveries 2 9 7 -- --

Interest 13,229 23,987 30,623 13,555 35,577

Other CBP Receipts 17,382 15,325 22,331 15,329 13,838

Total Miscellaneous 3,926,917 4,356,340 3,634,255 3,900,333 4,508,220

Internal Revenue Taxes 2,537,098 2,372,762 2,468,617 2,782,240 2,796,788

Total Collections $ 33,166,692 $ 34,497,068 $ 29,049,993 $ 32,143,935 $ 36,978,505

These schedules will not equal amounts reported on the Consolidated Statement of Custodial Activity due to 

timing adjustments and entity collections which are not reported on the Consolidated Statement of Custodial 

Activity but are included in this schedule.
171

CBP Collections by Major Processing Port Locations

(Dollars in thousands)

2007

(Unaudited)

2008

(Unaudited)

2009

(Unaudited)

2010

(Unaudited)

2011

(Unaudited)

Boston $ 490,841 $ 473,272 $ 399,974 $ 352,710 $ 345,490

Buffalo-Niagara Falls 211,699 219,508 242,514 342,659 294,659

Ogdensburg 155,739 150,884 119,537 132,890 132,567

Portland, Maine 59,000 62,549 55,795 54,993 60,124

Providence 92,454 80,518 75,706 82,532 112,008

St. Albans 42,897 32,817 43,030 46,778 46,145

Baltimore 586,224 637,952 544,222 615,025 629,569

Philadelphia 650,157 588,607 456,252 422,253 448,508

Newark 4,552,031 4,642,846 4,036,961 4,347,759 5,025,814

JFK Airport 1,234,035 1,216,836 863,404 961,149 1,017,668

Charleston 1,030,435 1,002,353 820,601 858,098 1,043,719

Miami 733,596 634,894 520,283 600,506 771,770

San Juan 110,913 108,981 106,167 101,368 117,235

St. Thomas 16,074 17,145 15,301 16,720 14,948

Savannah 1,438,061 1,550,580 1,408,693 1,643,027 1,985,424

Tampa 506,870 516,533 358,532 425,038 447,629

Wilmington 314,993 328,933 267,905 294,996 304,612

Norfolk 685,494 709,807 634,642 604,357 704,551

NFC Indianapolis/Washington 1,518,378 1,941,618 1,107,891 1,418,106 1,650,976

Mobile 142,869 196,619 157,615 168,661 180,997

New Orleans 1,055,211 1,145,196 942,917 1,011,820 1,232,590

Dallas/Ft Worth 444,678 460,147 409,354 428,898 527,570

El Paso 196,930 173,202 140,143 139,378 144,829

Houston 805,245 909,631 764,115 735,314 919,704

Laredo 395,215 411,218 371,492 424,299 583,472

Port Arthur 32,604 33,725 33,665 28,584 30,079

Nogales 82,999 82,410 73,703 84,353 96,259

Los Angeles 8,138,181 8,387,589 7,468,426 8,565,244 9,715,689

San Diego 303,717 294,529 218,071 216,275 221,490

Anchorage 110,296 116,518 106,594 124,792 134,253

Honolulu 39,955 43,013 32,732 32,816 36,089

Portland 454,523 443,190 318,839 303,922 312,337

San Francisco 1,084,934 1,161,110 1,035,916 1,115,329 1,301,094

Seattle 1,274,972 1,264,836 1,122,774 1,145,325 1,307,307

Chicago 1,560,159 1,664,181 1,407,416 1,602,089 1,916,811

Cleveland 1,385,583 1,528,043 1,293,102 1,490,599 1,710,571

Detroit 538,879 563,036 446,972 528,280 625,148

Milwaukee 36,056 37,766 24,687 24,786 23,183

Minneapolis 180,724 198,610 170,645 187,866 244,880

Pembina 18,982 23,635 23,254 23,483 25,078

St. Louis 287,356 282,539 273,758 304,941 364,369

Great Falls 166,733 159,692 136,393 135,917 171,290

Total Revenues Collected $ 33,166,692 $ 34,497,068 $ 29,049,993 $ 32,143,935 $ 36,978,505

These schedules will not equal amounts reported on the Consolidated Statement of Custodial Activity due to 

timing adjustments and entity collections which are not reported on the Consolidated Statement of Custodial 

Activity but are included in this schedule.

Other Accompanying Information (Unaudited)

Other Accompanying Information
172 U.S. Customs and Border Protection • Performance and Accountability Report

Summary of Financial Statement Audit and 

Management Assurances

Table 1 and Table 2 below provide a summary of the financial statement and management assurances for FY 2011.

Table 1: FY 2011 Summary of the Financial Statement Audit

Audit Opinion Unqualified

Restatement No

Material Weakness Beginning 

Balance New Resolved Consolidated Ending Balance

Custodial Revenue and 

Drawback Controls 1 0 0 0 1

Total Material 

Weaknesses 1 0 0 0 1

In FY 2011, the Independent Auditor’s consolidated financial statement report identified one material weakness, 

Custodial Revenue and Drawback Controls, for CBP.

Other Accompanying Information (Unaudited)
173

Table 2: FY 2011 Summary of Management Assurances

Effectiveness of Internal Control Over Financial Reporting (FMFIA Section 2)

Statement of Assurance Qualified

Material Weakness Beginning 

Balance New Resolved Consolidated Reassessed Ending 

Balance

Custodial Revenue and 

Drawback Controls 1 0 0 0 0 1

Total Material Weaknesses 1 0 0 0 0 1

Effectiveness of Internal Controls Over Operations (FMFIA Section 2)

Statement of Assurance Qualified

Material Weakness Beginning 

Balance New Resolved Consolidated Reassessed Ending 

Balance

Business Continuity 1 0 0 0 1 0

Information Security 1 0 0 0 1 0

Total Material Weaknesses 2 0 0 0 2 0

Conformance with Financial Management System Requirements (FMFIA Section 4)

Statement of Assurance Systems conform except for the below non-conformance(s)

Non-Conformances Beginning 

Balance New Resolved Consolidated Reassessed Ending 

Balance

Financial Systems Security 

(previously Information Technology General 

and Application Controls)

1 0 0 0 0 1

Core Financial Systems 1 0 0 0 0 1

Total Non-Conformance 2 0 0 0 0 2

Compliance with Federal Financial Management Improvement Act (FFMIA)

CBP

Overall Substantial Compliance No

1. System Requirements No

2. Accounting Standards Yes

3. USSGL at Transaction Level No

Other Accompanying Information (Unaudited)

Other Accompanying Information
174 U.S. Customs and Border Protection • Performance and Accountability Report

Improper Payments Elimination and Recovery Act (IPERA)

The Improper Payments Information Act (IPIA) of 2002 was amended by the Improper Payments Elimination and 

Recovery Act (IPERA) of 2010.

CBP identified and performed a risk assessment on all nine programs, three of which were identified as high risk. 

The Custodial Continued Dumping Subsidy Offset Act (CDSOA) and Wool Manufacturers payment testing has not 

identified any improper payments in the past three years. As a result, OMB granted relief from testing this program 

until FY 2013. For FY 2011 reporting, a stratified sampling design was used to test payments based on FY 2010 

disbursement amounts and the assessed risk of the program. Sampling plans provided an overall estimate of the 

percentage of improper payment dollars within +/- 2.5 percent precision at the 90 percent confidence level, as 

specified by OMB guidance. The following procedure describes the sample selection process:

•	 Identify large payment dollars as the certainty stratum;

•	 Assign each payment a randomly generated number using a seed;

•	 Sort payments within each stratum (by ordered random numbers); and

•	 Select payments following the sample size design. For the certainty strata, all payments are selected.

The Custodial Refund and Drawback payment testing yielded an estimated improper payment amount of $3.3 

million of the $1.2 billion, or .28 percent, disbursed during fiscal year 2010. The Border Security Fencing payment 

testing yielded an estimated improper payment amount of $21 thousand of the $364 million testing population, 

or .01 percent, disbursed during fiscal year 2010. The IPIA testing resulted in immaterial findings; therefore, the 

development of corrective action plans is not cost effective.

Improper Payment (IP) Reduction Outlook

2010 2010 2010 2011 2011 2011 2011 2011 2012 2012 2012 2013 2013 2013 2014 2014 2014

Program PY

Outlays PY IP % PY IP $ CY

Outlays CY IP % CY IP $

CY Overpayment 

$

CY

Underpayment 

$

CY + 

1 est. 

Outlays

CY + 1 

IP %

CY + 1 

IP $

CY + 

2 est. 

Outlays

CY + 2 

IP %

CY + 2 

IP $

CY + 

3 est. 

Outlays

CY + 3 

IP %

CY + 3 

IP $

Refund & 

Drawback $1,198M .28 $3M $1,405M .17 $2M $691,853 $0 $1,300M .17 $2M $1,300M .17 $2M $1,300M .17 $2M

Border 

Security 

Fencing

$364M .01 $0 $396M .01 $0 $0 $14,148 $528M .01 $0 $458M .01 $0 $461M .01 $0

The forecast of activity related to Refund and Drawback depends on indeterminable factors including the volume 

of trade activity and various trade related issues addressed and ruled on by the Department of Commerce.

Other Accompanying Information (Unaudited)
Other Accompanying Information 175

CBP also identified amounts for recovery during the Improper Payment Information Act (IPIA) review of FY 2009 

disbursements. The IPIA results are as follows (dollars in thousands):

Amounts Identified 

as Improper 

Payments

Amounts Identified 

for Recovery

Amounts 

Recovered

Custodial Refund and Drawback $ 3,295 $ 0 $ 0

Border Security Fencing $ 21 $ 0 $ 0

Totals $ 3,316 $ 0 $ 0

Recoveries for Custodial Refund and Drawback Program payments are restricted by regulations governing collections of duty, taxes, and fees associated with trade-related activity. Recovery of the improper payments for Border 

Security Fencing is not required as both payments were for Prompt Payment Interest that was earned but not paid.

Overpayments Recaptured Outside of Payment Recapture Audits

Agency Source Amount 

Identified CY

Amount 

Recovered 

CY

Amount 

Identified PY

Amount 

Recovered 

PY

Cumulative 

Amount Identified 

(CY+PYs)

Cumulative 

Amount Recovered 

(CY+PYs)

IPIA Sampling $ 496 $ 1,441 $ 5,409 $ 13,635 $ 247,859 $ 245,755

Self-Reporting $ 112,381 $ 112,381 $ 62,064 $ 62,064 $ 174,445 $ 174,445

Public Reporting $ 990,276 $ 990,276 $ 266,231 $ 266,231 $ 1,256,507 $ 1,256,507

Payment Recapture Audit Reporting

CBP contracted the audit recovery work for disbursements made during fiscal year 2010. The results of the recovery audit efforts continue to identify negligible recovery amounts. The recovery audit results are reported below:

Program or 

Activity

Type of Payment 

(contract, grant, 

benefit, loan, or 

other)

Amount Subject 

to Review for CY

Reporting

Actual Amount 

Reviewed and 

Reported CY

Amounts 

Identified for 

Recovery CY

Amounts 

Recovered CY

CBP Mission Contract $ 2,344,513,241 $ 2,344,513,241 $ 496 $ 1,441

% of Amount 

Recovered 

out of Amount 

Identified (CY)

Amount 

Outstanding (CY)

% of Amount 

Outstanding out of 

Amount Identified 

(CY)

Amount 

Determined Not to 

be Collectable (CY)

% of Amount 

Determined Not 

to be Collectable 

out of Amount 

Identified (CY)

Amounts 

Identified for 

Recovery PY

100 0 0 0 0 $ 247,363*

Amounts 

Recovered PY

Cumulative 

Amounts 

Identified for 

Recovery 

(CY + PY)

Cumulative 

Amounts 

Recovered 

(CY + PY)

Cumulative 

Amounts 

Outstanding 

(CY + PYs)

Cumulative 

Amounts 

Determined Not 

to be Collectable 

(CY + PYs)

$ 244,314 $ 247,859 $ 245,755 $ 2,104 $ 0

*Amount fluctuates from year to year based on previously identified recoveries determined to be invalid.

Other Accompanying Information (Unaudited)
176 U.S. Customs and Border Protection • Performance and Accountability Report

Disposition of Recaptured Funds

Program or 

Activity

Type of 

Payment 

(contract, 

grant, benefit, 

loan, or other)

Agency 

Expenses to 

Administer 

the Program

Payment 

Recapture 

Auditor Fees

Financial 

Management 

Improvement 

Activities

Original 

Purpose

Office of 

Inspector 

General

Returned to 

Treasury

CBP Mission Contract $ 0 $ 124 $ 0 $ 372 $ 0 $ 0

Payment Recapture Audit Targets

Program or 

Activity

Type of 

Payment 

(contract, 

grant, benefit, 

loan, or other)

CY Amount 

Identified

CY Amount 

Recovered

CY Recovery 

Rate (Amount 

Recovered/

Amount 

Identified)

CY + 1 

Recovery 

Rate Target

CY + 2 

Recovery 

Rate Target

CY + 3 

Recovery 

Rate Target

CBP Mission Contract $496 $496 100% 100% 100% 100%

Aging of Outstanding Overpayments

Program or 

Activity

Type of Payment 

(contract, grant, 

benefit, loan, or other)

CY Amount 

Outstanding 

(0–6 months)

CY Amount 

Outstanding 

(6 months to 1 year)

CY Amount 

Outstanding 

(over 1 year)

CBP Mission Contract $ 0 $ 0 $ 2,104

Other Accompanying Information (Unaudited)
Other Accompanying Information 177

Other Accompanying Information (Unaudited)

Office of Inspector General (OIG) Report on Major 

Management Challenges

The DHS OIG’s report on Major Management Challenges Facing the Department of Homeland Security, 

OIG-12-08, dated November 10, 2011, and the agency’s progress addressing these challenges are addressed 

at the DHS consolidated level and are incorporated into the DHS Fiscal Year 2011 Annual Financial Report 

(www.dhs.gov/xlibrary/assets/mgmt/cfo_afrfy2011_vol3.pdf).
178 U.S. Customs and Border Protection • Performance and Accountability Report

ABTC Agricultural/Biological Terrorism 

Countermeasures

ACE Automated Commercial Environment

ACS Automated Commercial System

ACTT Alliance to Combat 

Transnational Threats

AD/CVD Antidumping and Countervailing Duties

AEO Authorized Economic Operator

AFB Air Force Base

AFR Annual Financial Report

AgRA Agricultural Resource Atlas

AIS Automated Identification System

AMOC Air Marine Operations Center

APHIS Animal and Plant Health 

Inspection Service

APIS Advance Passenger 

Information System

APTL Agriculture Program Trade Liaisons

ARO Admissibility Review Office

ARRA American Recovery and Reinvestment 

Act of 2009

ATEP Alien Transfer and Exit Program

ATS Automated Targeting System

ATSP Automated Targeting 

System-Passenger

ATV All Terrain Vehicles

AUSA Assistant United States Attorney

BIC Border Intelligence Centers

BSI Border Security Initiative

CAMITS Customs Automated Maintenance 

Inventory System

CARMAC Computerized Aircraft Reporting and 

Material Control System

CBIG Caribbean Border Interagency Group

CBP U.S. Customs and Border Protection

CBSA Canadian Border Services Agency

CCDS Comprehensive Consequence 

Delivery System

CDC Center for Disease Control

CDSOA Continued Dumping and Subsidy Act

CFO Chief Financial Officer

CIA Central Intelligence Agency

CIS Citizenship and Immigration Services

CLP Carrier Liaison Program

COAC Commercial Operations 

Advisory Committee

COBRA Consolidated Omnibus 

Budget Reconciliation

COMPSTAT Comparative Statistics

COP Common Operating Picture

COS Chief of Staff

CPSC Consumer Product Safety Commission

CSI Container Security Initiative

Acronyms
179

Acronyms

CSRS Civil Service Retirement System

CTAC Commercial Targeting and 

Analysis Center

CTB Customs Tariff Bureau

CTN Critical Transit Nodes

C-TPAT Customs Trade Partnership 

Against Terrorism

CTTP Consolidated Trusted Traveler Program

DCR Diversity and Civil Rights

DEA Drug Enforcement Administration

DHS Department of Homeland Security

DIA Defense Intelligence Agency

DOC Department of Commerce

DOD Department of Defense

DOE Department of Energy

DOJ Department of Justice

DOL Department of Labor

DOS Department of State

DRO Detention and Removal Operations

EAB Evaluation Assessments Branch

ECB External Communication Branch

EEO Equal Employment Opportunity

eGIS Enterprise Geopatial 

Information Services

ER Expedited Removal

ESCM Entry Summary 

Compliance Measurement

ESTA Electronic System for 

Travel Authorization

FASAB Federal Accounting Standards 

Advisory Board

FAST Free and Secure Trade

FBI Federal Bureau of Investigation

FCB Field Communication Branch

FDA Food and Drug Administration

FDAU Fraudulent Document Analysis Unit

FECA Federal Employees’ Compensation Act

FERS Federal Employees’ Retirement System

FFMIA Federal Financial Management 

Improvement Act

FISMA Federal Information Security 

Management Act of 2002

FMFIA Federal Managers’ Financial 

Integrity Act

FOB Forwarding Operating Bases

FPF Fines, Penalties and Forfeitures

FPO Fraud Prevention Officer

FPP Fraud Prevention Program

FSIS Food Safety Inspection Service

FTA Free Trade Agreement

FY Fiscal Year

GAAP Generally Accepted 

Accounting Principles

Acronyms
180 U.S. Customs and Border Protection • Performance and Accountability Report

Acronyms

GAO Government Accountability Office

GOM Government of Mexico

GPRA Government Performance and 

Results Act

GSA General Services Administration

HPPG High-Priority Performance Goals

HRM Human Resources Management

HSGP Homeland Security Grant Program

HTS Harmonized Tariff Schedule

IA Internal Affairs

IAFIS Integrated Automated Fingerprint 

Identification System

IAP Immigration Advisory Program

IBET Integrated Border Enforcement Teams

ICB Information Coordination Branch

ICE Immigration and Customs Enforcement

ICPO International Criminal 

Police Organization

ICS International Container Security

IDENT Automated Biometric 

Identification System

IDS Information Display System

ILU International Liaison Unit

INA Immigration and Nationality Act

IOFS Intelligence Operations 

Framework System

IPEC Intellectual Property 

Enforcement Coordinator

IPR Intellectual Property Rights

IRTPA Intelligence Reform and Terrorism 

Prevention Act of 2004

ISA Importer Self-Assessment

ISA-PS Importer Self-Assessment 

Product Safety

IT Information Technology

ITDS International Trade Data System

IUF Immigration User Fees

JSP Joint Security Program

KCS Korean Customs Service

LPOE Land Ports of Entry

LPR License Plate Reader

MID Management Inspection Division

MIRP Mexican Interior Repatriation Program

MLU Mexican Liaison Units

MOIR Memoranda of Information Received

MOU Memorandum of Understanding

MPC Mobile Processing Center

MRA Mutual Recognition Arrangement

MSS Mobile Surveillance System

MVSS Mobile Video Surveillance System

NARP National Agriculture Release Program
181

Acronyms

NII Non-Intrusive Inspection

NTCC National Targeting Center-Cargo

NTCP National Targeting Center-Passenger

OA Office of Administration

OAM Office of Air and Marine

OASISS Operation Against Smugglers Initiative 

on Safety and Security

OBP Office of Border Patrol

OCA Office of Congressional Affairs

OCC Office of Chief Counsel

OES Office of Executive Secretariat

OFO Office of Field Operations

OGA Other Government Agencies

OI Office of Investigations

OIG Office of Inspector General

OIOC Office of Intelligence 

Operation Coordination

OIT Office of Information and Technology

OMB Office of Management and Budget

ONR Operation No Refuge

OPA Office of Public Affairs

OPP Office of Policy and Planning

OPSG Operation Stonegarden

ORBBP Operational Requirements Based 

Budget Program

OT Office of International Trade

OTIA Office of Technology Innovation 

and Acquisition

OTD Office of Training and Development

OTM Other Than Mexican

OTR Office of Trade Relations

PAP Partnership Action Plan

PAR Performance and Accountability Report

PGA Participating Government Agency

PGR Procuraduría General de la República

PIP Partners in Protection

PMF Performance Management Framework

POC Point of Contact

POE Port of Entry

POV Privately-Owned Vehicle

PPBE Planning, Programming, Budgeting, 

and Execution

PPQ Plant Protection and Quarantine

PRD Personal Radiation Detectors

PTI Priority Trade Issues

QC Quick Court

QHSR Quadrennial Homeland Security Review

RCMP Royal Canadian Mounted Police

RFID Radio Frequency Identification

Acronyms
182 U.S. Customs and Border Protection • Performance and Accountability Report

RIID Radiation Isotope 

Identification Devices

RIOS Radio Interoperability System Monitor

RPM Radiation Portal Monitor

RVSS Remote Video Surveillance Systems

SAFE Safety and Accountability for Every Port 

Act legislation

SAP Systems, Applications, and Products

SAR Search and Rescue

SBI Secure Border Initiative

SBREFA Small Business Regulatory 

Enforcement Fairness Act

SCSS Supply Chain Security Specialists

SENTRI Secure Electronic Network for Traveler 

Rapid Inspection

SES Senior Executive Services

SFFAS Statement of Federal Financial 

Accounting Standards

SFI Secure Freight Initiative

SIP Self-Inspection Program

SIRS Self-Inspection Reporting System

SRT Special Response Team

TACCOM Tactical Communication 

Modernization Program

TDY Temporary Duty

TECS The Enforcement 

Communication System

TI Tactical Infrastructure

TIPCC Trade Integrated Planning and 

Coordination Cell

TIDE Terrorist Identifies 

Datamart Environment

TSA Transportation Security Agency

TSDB Terrorist Screening Data Base

UAS Unmanned Aircraft System

USCG U.S. Coast Guard

USDA U.S. Department of Agriculture

VWP Visa Waiver Program

WHTI Western Hemisphere Travel Initiative

WMD/Es Weapons of Mass Destruction/Effects

Acronyms

Office of Administration

1331 Pennsylvania Avenue

Room 950, National Place

Washington, DC 20229

Please visit the U.S. Customs and Border Protection web site at

www.cbp.gov

To report suspicious activity, call

1–800–BE ALERT

March 2012