CBP smoothens trade execution

   In my last column, I wrote that 2015 could to be the year of international trade, and so far it has lived up to that potential. This is largely due to strong leadership by the United States, including U.S. Customs and Border Protection and Commissioner Gil Kerlikowske. The agency did great work in 2014 setting the stage for a productive 2015.  
   In February, the International Chamber of Commerce and the U.S. Council for International Business held a symposium in Miami focused on limiting cross-border friction to ensure the smooth flow of trade and boost competitive¬ness for all businesses. The conference brought together business, govern¬ment, international organizations and customs and trade experts for this important dialogue. Kerlikowske gave a keynote address on CBP’s 2014 work stream and its vision for the future. 
   CBP is leading the way for the completion of the government-wide automated “single window” initiative to streamline the movement of cargo in and out of the United States. CBP’s Automated Commercial Environment (ACE) has made big advances in the last year. The ACE system will enhance the agency’s ability to process imports and exports through automation, while coordinating data with the 47 other federal agencies that submit trade data. Mandatory use of ACE for all electronic manifest filing began on May 1.
   The mutual recognition agreement (MRA) between Mexico and the United States, which was completed last fall, is a milestone that will both facilitate trade across the U.S.-Mexico border and ensure the border’s security. Through the agreement, both countries re-committed to fostering economic growth while keeping their respective citizens safe. 
   Mexico is America’s third largest goods trading partner, with exports totaling $226 billion and imports reaching $280 billion in 2013. The MRA will link the two industry and security partnership programs: the Customs-Trade Partnership Against Terrorism in the United States and Mexico’s Alliance for Secure Commerce Program, as well as creating more robust trade flows and stronger partnerships with the private sector.
   MRAs should offer meaningful benefits to companies for achieving trusted status in order to entice business to join those programs. Trusted traders offer a great deal of information to their governments to achieve such recognition, and would benefit from knowing where that information goes. 
   The Centers of Excellence and Expertise (CEEs) are also making good progress. In January, three of the 10 centers transitioned beyond the test-phase and went into fully operational mode. CEEs are virtually staffed by trade specialists and provide multiple benefits to the trade community, including reductions in transactional costs. CBP increased consistency and predictability at the industry-level, and its enhanced ability to identify high-risk commercial importations. 
   Let’s not lose sight on another major milestone. The implementation of the WTO Trade Facilitation Agreement (TFA) is another opportunity for CBP to use other federal agencies’ technical expertise to engage with fellow customs administrations. One group that CBP should continue to engage with is the small and midsized enterprises, as they stand to benefit greatly from implementation from both commercial and security actions. 
   It is estimated that if fully implemented, the TFA could boost global GDP by up to $1 trillion. The Organization for Economic Cooperation and Development estimates that full implementation could reduce costs for low-income countries by 15 percent. Once implemented, the TFA will curtail corruption and regulatory red tape, and increase coordination and communication between countries while facilitating goods across borders. 
   Data automation, as mandated by the agreement, will increase transparency and reduce transactional costs by 3 percent, making it easier for small businesses and low-income and developing countries to compete globally in the international trade arena. It is critical that donor customs administrations, along with the private sector, continue to work together to ensure quick and efficient implementation. 
   It is clear that CBP, through its excellent work in 2014, is looking at its future and listening to our future. Continued collaboration and communication will be key in streamlining and securing supply chains while creating a more efficient flow of international trade. CBP has set the example through action and we look forward to what CBP has in store for the rest of 2015. 
   Cook is vice president of government and trade relations with Hanesbrands. He chairs the Customs and Trade Facilitation Committee of the U.S. Council for International Business and can be reached by email.

This column was published in the June 2015 issue of American Shipper.