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CBP Reports Decline in Compliance, Supply Chain Security Measures

U.S. Customs and Border Protection has posted to its Web site its annual performance and accountability report, which indicates that fiscal year 2012 saw a decline in several measurements related to compliance and supply chain security programs. Details revealed in this report include the following.

Compliance. The percentage of imports compliant with applicable U.S. trade laws, including customs revenue laws, fell for the second straight year to 96.46%, below the goal of 98%. CBP attributes the decline to classification errors by importers.

C-TPAT. The compliance rate for members of the Customs-Trade Partnership Against Terrorism with established program security guidelines declined to a five-year low of 94.5%, compared to 95.1% in FY 2011. CBP explains that a number of companies were suspended or removed due to the implementation of strengthened C-TPAT security criteria. In addition, the percentage of cargo by value imported by participants in CBP trade partnership programs (C-TPAT and Importer Self-Assessment) dropped from 55.07% to 54.66%, though this was still well above the goal of 45%.

CBP notes that recently C-TPAT Tier 2 and 3 members became exempt from stratified compliance exams and that it is working to also exempt them from non-intrusive inspection exams in the near future. In addition, CBP and the Transportation Security Administration have conducted three of six planned joint validations/inspections of airports and air carriers. It is expected that the results of this pilot program will lead to CBP’s acceptance that TSA security assessments are commensurate with a validation site visit, meaning CBP will no longer have to conduct C-TPAT visits for that sector.

CSI. CBP officers reviewed 10.8 million bills of lading and conducted 49,415 examinations of high-risk cargo in cooperation with host country counterparts under the Container Security Initiative. The percentage of such exams requested that were actually conducted rose for the third straight year to 98%, up from 96% in 2011. CBP notes that over the next two fiscal years it intends for CSI to become a hybrid of different operational models based on individual ports and host governments.

Screening. CBP did not meet its target for the percentage of inbound cargo identified as potentially high-risk by the Automated Targeting System that has been screened and had its entry status resolved prior to or during processing at a port of entry, but a specific figure was not given. CBP notes that reporting this measure in the land environment continues to be a challenge due to data accessibility and system data exchange issues.

Revenue Collection. CBP successfully collected 98.88% of all collectable revenue due from commercial imports that is directed by trade laws, regulations and agreements, down from 99.12% the previous year. Total collectible revenue is defined as total collection plus the estimated net under collection due to noncompliance with U.S. trade laws and regulations.

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Click here to read the Performance and Accountability Report for fiscal year 2012 
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