Presentation on theme: "U. S. Customs and Border Protection Trade Priorities June 16, 2010."— Presentation transcript:
U. S. Customs and Border Protection Trade Priorities June 16, 2010
Priority Trade Issues (PTI) Over half the goods for sale in U.S. markets are imported. Year 2007: - Value of imported goods exceeded $2 trillion million entries with over 102 million lines. - Over $32 billion collected.
CBP Must Prioritize Issues Layered Risk Management: Items taken into consideration: Potential Impact of Non-compliance. Revenue loss Economic injury Threat to health and safety
Agriculture PTI Merchandise associated with agriculture interests is extensive: Covers approximately 25% of the Harmonized Tariff Schedule of the United States (HTSUS). Products range from live animals and fresh fruits and vegetables to prepared foods and beverages. Regulated products can be found in at least 80 of the 97 chapters of the HTSUS. Economic, trade, and political impacts of the agriculture sector are enormous.
Goal of the Agriculture PTI Ensure a safe, expeditious, and consistent supply of agricultural products to the trade community, U.S. farmers, and American consumers. Protect the safety of the food supply and U.S. agricultural sectors from the intentional and unintentional introduction of plant and animal diseases and pests.
Antidumping/Countervailing Duty (AD/CVD) PTI CBP has a statutory responsibility to collect all revenue due the U.S. government. The AD/CVD system requires CBP to issue bills one to two, or more, years after an entry has occurred.
The AD/CVD PTI Ensures: A concerted, systematic approach is implemented to: Facilitate legitimate trade, Promote the timely transit of compliant goods across the border by focusing on the post-entry environment, Enforce AD/CVD law by using a risk-based approach to identify and address violations, circumvention schemes, Promote the use of traditional and innovative mechanisms to address non- compliance and revenue collection issues, and Promote economic security by cooperative relationships with other government agencies (OGAs) such as Commerce to level the playing field for U.S. companies injured by unfair trade practices.
Import Safety PTI Intended to ensure that unsafe products do not enter the commerce of the United States. Toys contaminated with lead or containing substandard and/or poisonous materials. Melamine contaminated pet food. Melamine contaminated milk.
Import Safety PTI Approach: Multi-tiered effort: OGA collaboration. Foreign government cooperation. Production and Supply Chain participants. The goal is to allow for the continued flow of legitimate trade in safe, healthy products while disrupting the flow of defective, dangerous, or unsafe goods.
Intellectual Property Rights PTI The trade in counterfeit and pirated goods threatens America’s: Innovation economy, The competitiveness of our business, The livelihoods of U.S. workers, and, In some cases, our national security and the health and safety of consumers. The trade in these goods is often associated with criminal activities and often funds criminal activities including terrorism.
IPR Enforcement: Multi-layered approach: Seizing fake goods at our borders, Pushing the border outward through audits of infringing importers and cooperation with international trading partners, and Partnering with industry and other government agencies.
Penalties PTI Considerable CBP resources are expended to achieve modest penalty collections, and A penalty is often the only tool available to CBP to deter noncompliance in the trade environment.
Penalties PTI Goal: To improve the effectiveness of the trade fraud penalty process by emphasizing national direction, uniformity, swift action, applying trade compliance alternatives to traditional commercial fraud penalties, and by focusing trade fraud resources on Priority Trade Issues (PTI). Trade fraud is any entry or importation by way of false acts, information, or omissions including false information, false descriptions or material omissions contained in entry documentation.
Revenue PTI U.S. Customs and Border Protection (CBP) collects over $30 billion annually. CBP is the second largest revenue generator for the U.S. Government. Revenue collection is not the only financial responsibility of CBP. Must have effective management controls to ensure fiscal integrity. Revenue is a PTI as the result of a 2002 audit faulting CBP’s monitoring of its internal controls over duties and taxes.
Textiles PTI Textile commodities are high risk for commercial fraud. Numerous and complex requirements placed on textile products. Approximately 42% of all duties collected by CBP are from textile imports. Numerous and varied schemes are used to evade duty on imported textiles. Textile violations often overlap other PTIs (IPR and Revenue).
Textile PTI Methods Include: Trade pattern analysis, On-site verifications, Review of production records, Audits, and Laboratory analysis.
Our Mission We are the guardians of our Nation’s borders. We are America’s frontline. We safeguard the American homeland at and beyond our borders. We protect the American public against terrorists and the instruments of terror. We steadfastly enforce the laws of the United States while fostering our nation’s economic security through lawful international trade and travel. We serve the American public with vigilance, integrity and professionalism. Our Mission We are the guardians of our Nation’s borders. We are America’s frontline. We safeguard the American homeland at and beyond our borders. We protect the American public against terrorists and the instruments of terror. We steadfastly enforce the laws of the United States while fostering our nation’s economic security through lawful international trade and travel. We serve the American public with vigilance, integrity and professionalism.