Brenda Smith, Executive Assistant Commissioner, Office of Trade Troy Riley, Executive Director, Trade Remedy and Law Enforcement Directorate (TRLED) Randy Mitchell, Director, Commercial Operations and Entry Division, Trade Policy and Programs (TPP) Debbie Augustin, Executive Director, Trade Transformation Office (TTO)

1. U.S. CUSTOMS AND BORDER PROTECTION
OFFICE OF TRADE
OFFICE OF INFORMATION AND TECHNOLOGY
Presentation to:
Government Technology & Services Coalition
May 11, 2017

2. CBP TRADE MISSION
CBP system is one of the largest federal revenue generators and drives major
business functions for other federal and commercial stakeholders
Annual revenue
generated from
duties, taxes, and fees
$45B
Average import and
export filings per day130k+
Impact to Trade
A service disruption impacts
$11.8B in trade that is
processed through air, land, and
sea ports every day
Delayed Supply Chain
Just-in-time supply chains, such
as those at Ford, GM, and
Chrysler are halted or
interrupted
Revenue Loss
Delayed cargo processing
resulted in a revenue loss for
Delta Airlines of $4M in one
month
Value of trade
processed by ACE and
ACS each year at ports of entry
$4T
The scale and size of ACE also means a service disruption can
have significant downstream impact on private industry
47+Number of Partner
Government
Agencies using CBP’s ACE for
business operations
CBP Operating Environment
Importing and
exporting companies
provide transaction data to CBP.
600k+
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3. CBP TRADE MISSION
Long pole in the tent for
other technical
enhancements
Monthly statement filing
and better alignment to
account-based
management
Developed legislative
proposals and expansion
of Pay.gov features
Enhancements such as
retroactive flagging and
accelerated liquidation
Incorporate all
transactions into one
financial statement
Refined and Prioritized
FY14 & FY 15 Working
Group Recommendations
Simplified Process 5-Year Roadmap
Stakeholder
Engagement
Interim
Updates &
Development
National
Monthly
Statement
Line Level
Liquidation
Reconciliation
Enhancements
Monthly
Summary
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4. CBP TRADE MISSION
• Intellectual Property
• Import Safety
• Antidumping / Countervailing
• Trade Agreements
• Textiles
• Revenue
• Agriculture
• Enforce and Protect Act
• Forced Labor
• Congressionally Mandated Reorganization
• Hiring / Skill Acquisition
• Trade Intelligence
• Trade Analytics (Cognitive Analytics/Big Data)
“To succeed we must convert challenges to advantages”
Trade Enforcement Focus Areas/Priorities
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5. CBP TRADE MISSION
Trade Enforcement Challenges
Large Volumes, Complex Operational Framework
Resource Constrained
Minimal Trade Flow Disruption
Creative/Adaptive Opponents
Challenges defined
26 million containers a year (release nearly 1 container per second)
30 million entries processed yearly
177 million entry lines reviewed
4 Trillion in value
45 Billion in revenue collected
368,000 unique importers
2.3 Billion in uncollected bills
Challenges
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6. CBP TRADE MISSION
2a ACE and CBP
targeting
systems
exchange
data
Public Source
Data
CBP’s automated
targeting systems conduct
random and pre-defined
assessments

Assess
Targeting
Leverage public
information to
inform CBP reviews
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CBP’s ACE/Single Window
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7. CBP TRADE MISSION
Goals
• Volume of import transaction to
analyze
• Labor intensive research
• Comprehensive company profiles
• Improved ability to validate company
legitimacy / pay financial obligation
• Improved ability to understand company
relationships (e.g. shell companies)
ENHANCED RISK MODELING
• Crowd-sourcing to improve leveraging data
accuracy to assess (a) likelihood of repayment, (b)
relationship to bad actors
• Highlight company relationships
• Modification of trade flow
patterns by some importers to
evade continued enforcement
actions
• Detection of changes in trade
flows that may signal evasion
• Detect importer alterations in trade flows:
• Shipping parties change
• New country transshipment
• Connect changes to parties recently targeted
for CBP enforcement action
• Detect shifts in sourcing/shipping patterns
DETECTING TRADE FLOW CHANGES
• Baseline “normal” trade patterns
• Recognize shifts within industries so CBP can
quickly realign its enforcement activities
• Ex. Commerce publishes AD/CVD orders – how
do trade patterns respond
• Various global supply chain
requirements from various
customs administrations
• Various risk assessment
approaches from various
customs administrations
• Create a global risk management strategy for
customs and companies administrations
• Assess shipment security risk on:
• Parties to the transaction
• Key shipment data
CUSTOMS RISK MANAGEMENT TOOLS
• “Off the shelf” common risk assessment
methodology for customs administrations.
• Web-based platform for companies to assess
customs risk in their supply chains
• Ex. Supplier is known/suspected counterfeiter.
Actors use tool to identify risk in supply chain
and take action.
• Various country legal, policy,
process and data requirements
for imports/exports
• Data/process duplication
• Enhanced U.S. competitiveness in regional
and global markets
• Increased transparency and predictability of
goods moving through supply chain
• Enhanced risk analysis /management
• Improved security
REGIONAL SINGLE WINDOW
APPROACH
• Easier identification of requirements for moving
imports/exports in/out and through the region
• Automated data mapping
OpportunitiesChallenges
Opportunities for Leveraging Data
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8. CBP TRADE MISSION
Goals
• Requirements for U.S.
trademark, copyright, and
exclusion orders
enforcement/seizure at ports of
entry
• Merchandise entering United
States via express courier
consignment and international
mail
• Dumping and Transshipment
• Honey, petroleum, cotton,
shrimp
• Rapid and accurate IPR determinations
performed at the ports of entry require that
CBP be prepared with the necessary
authentication tools, technology, and training
• Support trade community responsibilities for
proactively avoiding products that are
counterfeit, made from forced labor, in
violation of trade laws/agreements
INTELLECTUAL PROPERTY PROTECTION
TOOLS
• Counterfeit product detection
• Commodity composition proof
• Geographical markers
• Trademark owner and industry engagement on
specific detection and enforcement techniques
• Origin of goods not readily
apparent at arrival
• Origin and composition testing is
time consuming and costly
• Strong incentive to falsify origin
and composition records in order
to qualify for lower duty rates
• Rapid verification of a commodity’s origin
and composition during physical examination
ORIGIN VALIDATION
• Portable verification tool for use by CBP Officers
• Verification tools could also be sold to industry as
a means to monitor supply chain integrity
• Ex. Currently difficult to determine origin for
fishery products as well as origin and composition
for honey from some countries
OpportunitiesChallenges
Opportunities for Technology Innovation
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9. CBP TRADE MISSION
• CBP created an E-Commerce and Small
Business Branch within the Office of Trade, in
September 2016 to manage operational
associated trade policy and address resulting
complexities.
• CBP views its e-commerce challenge as
processing the significantly increasing volume of
parceled goods physically moving across the
border and the lack of international trade laws
and regulations knowledge by new importers,
including small and medium businesses.
• CBP is in the process of drafting both an e-
commerce and a small business strategy, each
which are based around three pillars: engage,
educate, and enforce.
• CBP is participating in the WCO E-Commerce
Working Group and is a co-chair for the Safety &
Security Sub-Working Group.
• CBP established the COAC E-Commerce
Working Group in 2017.
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E-Commerce & Small Business

10. CBP TRADE MISSION
Trade Engagement
Commercial Operations Advisory
Committee (COAC)
20 members | 1-2 monthly calls | 4 annual
onsite meetings
3 sub-committees work on ACE:
• One U.S. Government at the Border
• Modernization
• Exports
Output: Strategic, public policy level
recommendations.
Border Interagency Executive Council
47 agency Executives | Chaired by DHS
Secretary | 4 annual onsite meetings
3 sub-committees:
• Risk Management
• Process Coordination
• External Engagement
Output: Policy coordination and reduction of
barriers preventing automation.
ITDS Board of Directors
Technical reps from 47 agencies | Chaired by
Treasury Under Secretary | Monthly onsite
meetings
Works on all aspects of ACE integration. Forms
committees and working groups as needed to
address specific issues.
Output: Focus on automation and driving
interagency requirements.
Trade Support Network
300 members (40 leadership reps) | Monthly calls
| 2 annual onsite meetings
9 sub-committees work on ACE:
Output: Detailed requirements for new ACE
features, enhancements to existing features and
assistance with testing.
• Account Management
• Entry
• Export
• ITDS
• Legal & Policy
• Multi-Modal Manifest
• Supply Chain Security
• Transition
• Revenue
Strategic/ Policy Approach Automation/Tactical Input
Industry
PartnerGovernment
Agencies
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