Joint Meeting of the Business Mobility Group and
the Sub-Committee on Customs Procedures
March 2, 2011 in Washington, DC
Meeting Summary
I. INTRODUCTION
The Asia Pacific Economic Cooperation (APEC) Business Mobility Group (BMG) and Sub-Committee on Customs Procedures (SCCP) met jointly on March 2, 2011 in Washington, DC. The meeting was chaired by the BMG Chair, Stephen Allen and the SCCP Chair, Brendan O’Hearn.
U.S. Customs and Border Protection (CBP) invited the BMG and SCCP delegates to the optional joint meeting to allow members of the customs and immigration communities the opportunity to come together to share best practices and develop practical ways in which border agencies can enhance and strengthen coordination.
II. Opening remarks
In his opening remarks, the CBP Commissioner, Alan Bersin thanked the delegates for attending and applauded the SCCP and BMG for meeting together to explore the challenges and opportunities of unified border management. After providing a brief background on the CBP’s formation as an integrated border agency, he explained that the United States views supply chain issues in terms of security and that CBP manages the United States’ physical boundaries and considers the flows of goods and people before they reach U.S. borders.
Mr. Bersin further outlined CBP’s two theories for processing operations: 1) to validate cargo and people as far and early from the port of entry as possible and 2) to manage and assess the risk of passengers and cargo in order to facilitate legitimate traffic. CBP has realized that it can no longer treat trade facilitation and security as separate goals because finding the exception is like finding a needle in a haystack. In order to accurately identify threats, sharing intelligence is essential. Mr. Bersin noted that the Yemen cargo plot was averted as a result of Saudi and European intelligence, in addition to private sector cooperation. Another way to target threats is by segmenting traffic through risk assessment and focusing resources on cargo and passengers who pose a risk. Trusted traveler programs, like Global Entry, and trusted shipper programs, like Customs-Trade Partnership Against Terrorist, were identified as mechanisms to do this. Through unified border management, CBP is able to create partnerships with other government agencies and the private sector in order to effectively target risks and increase global supply chain security.
Mr. Bersin highlighted that it is the nature of bureaucracies to hoard information, but that affects governments’ ability to act effectively. By sharing information, governments enhance their power. This is a paradigm for conducting common work in the future.
Mr. O’Hearn thanked the Commissioner for his remarks and noted that he raised some topics that the SCCP is addressing, including risk management, intelligence, partnerships and information sharing. Mr. O’Hearn noted the joint meeting as an excellent platform to launch discussions between the BMG and the SCCP. Mr. O’Hearn furthermore noted that the United States is placing an emphasis on horizontal thinking throughout its host year. This focus is reinforced by the APEC Supply Chain Connectivity Framework, which points to a noticed lack of coordination among border management agencies.
Mr. Allen noted this meeting is an excellent opportunity for the two sub-fora to gain an understanding of each others priorities and goals. He mentioned that the development of APEC best practices on border capabilities was a BMG goal for this year and that the joint meeting provided a good basis for future collaboration with other APEC sub-fora. Mr. Allen hoped for active participation in the meeting to share approaches and identify challenges and obstacles.
III. Presentations
WORLD CUSTOMS ORGANIZATION PRESENTATION ON
COORDINATED BORDER MANAGEMENT
Susanne Aigner, Deputy Director, Compliance and Facilitation from the World Customs Organization (WCO) explained the organization’s work with Coordinated Border Management (CBM) among its 177 members and described some of the important benefits and challenges of such an approach.
Ms. Aigner noted that the SAFE Framework of Standards to Secure and Facilitate Global Trade promotes an integrated supply chain and fosters closer cooperation with trade. In the framework, border management is referred to as “coordinated” instead of “integrated” in order to emphasize the coordination of policies, programs, and delivery outcomes. A third pillar may be added to the framework devoted to cooperation between Customs and other agencies.
In addition, Ms. Aigner highlighted that political will is important for CBM. Without political will, there may not be adequate direction and guidance to effectively carry out inter-agency cooperation. Additionally, the CBM approach requires agencies to review their mission requirements and compare it to other agencies to prevent overlap and redundancy.
Single Window is a valuable part of the CBM toolkit. Single Window integrates electronic systems to ensure trade related data is only submitted once, at a single entry point, and fulfills all import, export and transit regulation requirements. This simplifies information flows between trade and government, and can result in greater data harmonization. Coordination and sharing information are key to risk management.
CANADA’S PRESENTATION ON THE CREATION OF THE CANADA BORDER SERVICES AGENCY
Diane Hall, Director, International Affairs Division, Canada Border Services Agency (CBSA) explained that CBSA was formed on December 12, 2003, noting how the Canadian and U.S. experiences are very similar. CBSA was formed as a result of integrating three agencies which handled customs, immigration, and food inspection issues and is responsible for customs and revenue, intelligence interdiction, citizenship and immigration, and import inspection.
Ms. Hall outlined the major challenges and some lessons learned in the transition process. Legislative, human resources, culture, funding, and information technology were all areas which presented challenges during the consolidation. Ms. Hall gave examples of each, noting that the Transition Management Team was instrumental in helping the 15,000 employees through the transition while continuing operations. One important lesson learned was that CBSA disbanded the transition team too early. Costs for creating CBSA were larger than anticipated. In hindsight, the agency’s creation process would have benefited from having a champion in the upper levels of government.
In April 2010, CBSA had its first reorganization since its formation, and will probably reorganize again. As CBSA evolves, it is essential to have the commitment of staff in order to facilitate trade and travel.
Following the presentation, Ms. Hall responded to the audiences’ inquiries:
1. What was the biggest cultural challenge CBSA faced during the reorganization process?
The biggest challenge was creating one unified identity and fostering a sense of belonging among employees. This was illustrated by the issue of having to create one uniform for the officers. Human Resources was instrumental in building a culture within the organization. Additionally, leaders from all agencies were placed in senior management positions.
2. Has Canada shared its experiences with other countries?
Canada has formed partnerships, at the head and working levels, with a few key countries (the United States, Australia, the United Kingdom, and New Zealand) to discuss the challenges it experienced from combining agencies.
3. How long is ideal to plan for a merger?
Canada took three years to plan CBSA; however, that was too long. It took officials one year to plan the April 2010 reorganization; but, that involved a different type of planning process because they were not creating the organization from the beginning.
4. What were the major findings of the five-year review?
Seven directorates were created initially. Also, CBSA created a branch dedicated to handling trade facilitation and security.
5. What challenges has Canada faced in the legislative process?
Since the prime minister mandated the formation of the agency, the legislative process was given direction. When creating CBSA’s legislation, CBSA had to incorporate legislation from all the legacy agencies into one act.
6. What key roles were played by management for those hesitant to change?
The transition and Human Resources teams were key to bringing people together. The development of a common uniform and celebrating World Customs Day also helped. Leaders from each organization came together on teams. Retreats and team-building were also effective. At this point, we have a new level of enthusiasm.
United states’ Presentation on the NATIONAL TARGETING CENTER-CARGO
Daniel J. Randall, Chief Watch Commander from CBP’s National Targeting Center-Cargo (NTC-C) explained the NTC-C’s role, which is to support CBP’s cargo-related activities by proactively targeting and coordinating examinations of high-risk cargo in all modes of transport. The CBP targeting process includes collecting advance information, incorporating principles of risk management, enhancing with intelligence from the intelligence community, information received from the field and emphasizing automated systems to process large quantities of data quickly.
Mr. Randall provided an overview of CBP’s layered enforcement strategy. The NTC-C utilizes the Automated Targeting System (ATS) which is central to CBP’s anti-terrorism targeting strategy. ATS is a rules-based decision support and sorting tool used to identify high risk targets, travelers and cargo shipments posing a potential terrorist risk. CBP collaborates successfully with a number of partners such as local authorities, other government agencies, and the private sector. FedEx and UPS, for example, provide advance target data. Previously CBP received air cargo manifest data four hours prior to arrival and now receives this information 20-24 hours ahead of time. CBP fosters international partnerships, such as the current collaboration with Mexico through the International Fellowship Program. This information sharing has led to numerous seizures of narcotics and precursor chemicals.
Following the presentation, Mr. Randall responded to a question from the audience: How does CBP inform the business community of the control practices of dual-use substances? According to Mr. Randall, information flow is controlled by the Department of Commerce and it would contact the private sector. CBP works in cooperation with the Department of Commerce.
United states’ Presentation on the NATIONAL TARGETING CENTER-PASSENGER
Mario Medina, Watch Commander from CBP’s National Targeting Center-Passenger (NTC-P) explained that the NTC-P is a 24/7 operation with a centralized mission of coordinating anti-terrorism targeting and supporting all of CBP’s anti-terrorism activities. All CBP Terrorist Watch list encounters are processed through the NTC-P and coordinated with the NTC-C.
CBP’s coordination with other agencies and partners overseas is critical. For example, CBP could obtain derogatory information about an individual who has already been vetted and received a valid visa by the U.S. Department of State. That individual can easily board a flight. CBP coordinates with foreign partners overseas through our Immigration Advisory Program (IAP) to make sure that person does not board that flight. Advisors work in a supporting role and the host country makes that final decision. This is part of CBP’s layered border strategy designed to prevent terrorists and other high risk travelers from boarding commercial aircrafts bound for the United States.
United states’ Presentation on the GLOBAL ENTRY PROGRAM
David Sanchez, CBP Officer and Program Manager, Global Entry in CBP explained that the agency’s trusted traveler programs have a dual mission to secure the border and facilitate travel and trade. The Trusted Traveler Program is designed to expedite CBP processing for pre-approved, “low risk” trusted travelers by providing dedicated inspection processes. This allows CBP to focus on unknown, potentially higher risk travelers. The process is voluntary, fee based, and applicants submit an online application. Applicants are subject to background checks, collection of biometrics, and an interview with a CBP Officer to confirm identity, immigration status, travel documents, personal information, and a “low risk” status. A full set of 10 fingerprints are electronically captured and submitted for law enforcement queries. If any derogatory information is found, the applicant may be denied entry into the program.
Trusted travelers use a dedicated lane at U.S. airports. A kiosk validates membership and Advance Passenger Information System (APIS) information, performs real time law enforcement database queries, and allows the traveler to complete a CBP Declaration. Upon completion a time-stamped receipt is provided.
CBP’s Trusted Traveler Programs include the Secure Electronic Network Travelers Rapid Inspection (SENTRI) for the U.S.-Mexico land border; Free and Secure Trade (FAST) for commercial truck drivers on Canada-Mexico land borders; NEXUS which is a joint program with CBSA and CBP; and Global Entry which is used for U.S. citizens, U.S. Lawful Permanent Residents, and Citizens of the Netherlands (via the FLUX arrangement), Canadian NEXUS program members, Mexican SENTRI program members and Mexican nationals. Bilateral Global Entry arrangements are based on agreed-upon vetting criteria and databases. CBP never exchanges derogatory information. The difference is that the applicant is vetted by both governments and is given a “low risk status” in order to proceed.
Japan’s presentation on COORDINATED BORDER MANAGEMENT
Hidetoshi Aramaki, Deputy Director, Office of Regional Customs Cooperation, Japan Customs & Tariff Bureau presented on how Japan’s Customs agency coordinates with other agencies. Japanese Customs is a component of the Ministry of Finance and is organized into nine jurisdictional areas with regional headquarters and branch offices. Japan has been successful in a number of instances with their interagency coordination.
At their ports of entry, there are two lines of defense against threats. Immigration can refer suspicious passengers to Customs, and Customs can refer individuals back to Immigration to confirm their travel documents. Mr. Aramaki pointed out that this may seem old fashioned, but it works for Japan because of the experience and expertise of their agents.
Japan has also had success with “Joint Ship Searches” involving Customs, the Coast Guard, and the Police. These joint search teams typically look for illicit drugs and firearms, but were used successfully last year during APEC Japan to search for terrorists.
The number of illegal entries detected by Customs has decreased in recent years because of tightened enforcement and a recent immigration procedure which requires fingerprints and pictures of all foreign nationals entering the country.
Since 2000, Japan has also engaged in personnel interchanges of its employees in the different border management agencies, often at the regional level.
Since 2010, Advanced Passenger Information has been integrated into one system and Single Window has also been integrated. These system integrations reduce costs and are much more user-friendly.
Mr. Allen noted the strong deterrent value of collecting biometrics at the border and thanked Japan for bringing up that point.