Commentary: For CBP, the ‘P’ should stand for partnership

CBP Commissioner Gil Kerlikowske said in his final big speech before leaving office that the agency’s enforcement, security and trade facilitation missions cannot succeed without working closely with overseas counterparts.    To what extent the United States, under a more inward-looking and enforcement-minded administration led by President-elect Donald Trump, pulls back from international partnerships remains to be seen. When it comes to border management and securing commercial supply chains, however, collaboration with foreign governments is vital, according to CBP Commissioner Gil Kerlikowske.
   In his final big speech before leaving office, the former police chief said the agency’s enforcement, security and trade facilitation missions can’t succeed without working closely with overseas counterparts, especially as threats from criminals and terrorists continue to evolve.
   And that type of engagement is also necessary between CBP and domestic agencies that have authority to clear goods at the border, as well as industry, a point reinforced by Deputy Commissioner McAleenan.
   CBP shares information, technology, and best practices, and coordinates enforcement actions with other customs administrations to virtually push out the U.S. border, address potential threats at the source, and harmonize cargo processing and data sharing to minimize burdens for shippers.
   “The tremendous growth in the volume and complexity of trade requires increased cooperation among customs authorities to detect, deter, and disrupt networks engaging in illicit trade,” Kerlikowske said at the annual Trade Symposium in Washington.
   “Traditional trade fraud schemes – activities such as transshipment and undervaluation – are becoming harder to detect and prove without tracing the goods back through the supply chain. And relatively new trade fraud schemes – such as identity theft and trade-based money laundering – pose risks not only to U.S. national security, but also to those of our closest trading partners.
   “Increased information sharing among customs agencies – through an International Customs Network, for example – would facilitate global enforcement, improve risk management, and help stem the proliferation of illicit trade,” he said.
   CBP is also leading international efforts to modernize customs processes in other countries. One of its key initiatives is aligning cargo processing and data collection with Mexico and Canada – a goal the Obama administration established with both countries to help make the common borders more secure and friendly to commerce. Common data standards for electronic processing systems across North America would save companies time and money.
   Intellectual property rights (IPR) enforcement is another area that involves international cooperation, with customs authorities in Mexico, Hong Kong and elsewhere participating in joint operations to stop counterfeit merchandise from reaching the U.S. market. In fiscal year 2016, U.S. authorities made more than 31,000 IPR seizures, an agency record and a 9 percent increase over the prior year, Kerlikowske said.
   Meanwhile, CBP has received permission from the State Department to add customs attachés at embassies or consulates in nine new countries.
   A spokesperson said CBP is still finalizing plans with the State Department on the new staffing arrangements, but according to personnel in the Office of International Relations who asked not to be named, countries that will host new attachés include Colombia, France, Australia and Morocco.
   CBP currently operates attaché offices in 21 countries. Attachés are usually posted at the U.S. embassy in the capital city, where they inform and advise the ambassador or consul general on CBP programs and capabilities. They coordinate with overseas counterparts to carry out programs such as the Container Security Initiative, the Immigration Advisory Program, the Customs-Trade Partnership Against Terrorism, and capacity building. They also push foreign officials to change laws, implement policies or apply resources to address specific problems, such as the flow of unaccompanied children from Central America to the United States via Mexico.
   The attaché program is an important element in fostering collaboration with other governments, officials say.
   McAleenan said new Customs authorization legislation shows that Congress is serious about enforcement of trade laws, but that “we are not building this enforcement posture alone.” Industry representatives have helped co-create the Automated Commercial Environment (ACE), the Centers of Excellence and Expertise, the Air Cargo Advanced Screening pilot and other programs, and that industry partnership will continue, he stressed.
   Enforcement today will be much more sophisticated than 10 years ago because there is a built-in feedback loop, enabling CBP to “better focus our resources on those that aren’t playing by the rules,” added McAleenan.
   And CBP is working to bring a dozen other agencies into a coordinated border management model. With support from the White House, Customs in recent years has institutionalized a regular forum where a dozen leaders of agencies with import and export responsibilities figure out how to use a common approach to clearing cargo. The effort has required CBP to educate other agencies on how to minimize inspections by applying risk management principles; participate in the ACE “single window,” a shared pipeline allowing for streamlined document filing, clearance decisions and communication; and collaborate with industry in the development of regulations from the ground up.
   The future of the North American Free Trade Agreement (NAFTA), trade facilitation and supply chain security were clearly on the minds of industry professionals attending the event.
   Trump’s harsh rhetoric about the benefits of alliances such as NATO and NAFTA and the need to take a hard line on terrorism and illegal immigration across the border has some in the trade community wondering whether the Department of Homeland Security and CBP will continue to invest the hard work and modest sums of money needed to build these relationships under his administration.