NATIONAL OPERATIONS 3

Transcription

1

2 WHO WE ARE 2

3 NATIONAL OPERATIONS 3

4 Protecting the Border Is An Immense Job Every day, 60,000 CBP employees protect nearly 7,000 miles of land border and 328 ports of entry.

5 So Is Managing Our Massive Imports & Exports In FY 2014, CBP processed $2.4 trillion in imports and $1.6 trillion in exports.

6 THREE PRONGED MISSION 6

7 Centers of Excellence & Expertise collaboration with the trade on streamlining our trade process is the February 2015 development of the Centers of Excellence and

8 Why Centers? Respond to the dynamic trade environment Bring all of CBP expertise together on a single industry at the national level Deliver greater consistency and harmonization Align CBP processes with modern business practices Enhance industry-based knowledge Implement manage-by-account practices Textiles Intellectual Property Rights Revenue Trade Agreements/ Preference Programs Anti-Dumping Countervailing Import Safety Duties (ADCVD) Agriculture Trade Complexity 8

9 What are Centers? Virtual organizations that leverage technology to bring work to the Center Coordinated from a strategic location CEE Aligned by key industry sectors Bring existing expertise together to authoritatively facilitate trade Provide a single point of processing for participating importers Serve as resource to the broader trade community and to CBP s U.S. government partners 9

10 How Centers Operate Previously ACME Apparel was importing into 60 Ports of Entry (POE), with 60 ports conducting reviews. Center Operations Instead of 60 ports making decisions on ACME Apparel entries, they would now be reviewed by the Apparel, Footwear & Textiles Center of Excellence which is coordinated from San Francisco, CA. 10

11 Centers of Excellence and Expertise Buffalo Industrial & Manufacturing Materials San Francisco Apparel, Footwear & Textiles Chicago Base Metals Detroit Automotive & Aerospace New York Pharmaceuticals, Health & Chemicals Los Angeles Electronics Atlanta Consumer Products & Mass Merchandising Laredo Machinery Houston Petroleum, Natural Gas & Minerals Miami Agriculture & Prepared Products

12 Benefits of Centers Action Eliminate unnecessary transactional work for compliant importers Fewer cargo delays Reduced costs Greater predictability Benefits Shift focus at Ports of Entry to high-risk shipments Provide Centralized Point of Contact for inquiries Develop cross-functional expertise More complex enforcement work for highly skilled CBP employees Improved enforcement results: Increased import safety Increased revenue protection Reduced economic loss to IPR theft Improved relationship with CBP as small/mediumsized importers have a streamlined inquiry process for resolving concerns Increased uniformity and transparency for the trade Environment for in-depth learning to increase CBP expertise and enhanced enforcement methods 12

13 Expansion of Centers Operational Expansion Beyond Test Process for 3 Centers Electronics; Petroleum, Natural Gas & Minerals; Pharmaceuticals, Health & Chemicals Provides for Full Test of Trade Processes Complete Roll Out Within 6-8 Months Delegation Order Provides Center Directors Full Authority to Make Trade Decisions Import Specialist Realignment Expansion of 7 Centers under Center Test Staff Will Transition to Centers as Account Participation Increases Based on Workload For official use 13

14 Roll-Out Timeline and Location Accelerated Roll-Out Timeline Field Office Phase I Jan-March Phase II April-June Phase III July-Sept Elec Petro Pharma Elec Petro Pharma Elec Petro Pharma Atlanta X X X Baltimore X X X Boston X X X Buffalo X X X Chicago X X X Detroit X X X El Paso X X X Houston X X X Laredo X X X Los Angeles X X X Miami X X X New Orleans X X X New York X X X Portland X X X San Diego X X X San Francisco X X X San Juan X X X Seattle X X X Tampa X X X Tucson X X X Total # of FO's Phase I Ports Phase I Ports Phase I Ports Electronics Center Director Pharmaceutical, Health & Chemicals Center Director Petroleum, Natural Gas & Minerals Center Director Long Beach El Paso Seattle Los New York Blaine Angeles/LAX Chicago Newark Pembina Cleveland Chicago Great Falls Milwaukee Cleveland San Francisco Minneapolis Milwaukee Honolulu St. Louis Minneapolis Portland, OR San Francisco St. Louis Long Beach Honolulu Atlanta Los Angeles/LAX Houston Charleston San Diego Dallas/Ft. Charlotte Nogales Worth Seattle Norfolk Phoenix Pembina El Paso Blaine Great Falls Portland, OR Anchorage 14

15 Apparel, Footwear and Textile Center of Excellence and Expertise 15

16 Apparel, Footwear and Textiles Import Highlights $126.5 billion in footwear, textile, wearing apparel products come into the U.S. (5.5% of all imported value) Top 5 countries of origin account for 66% of these imports China Vietnam India Mexico Indonesia Over 64,000 entities import footwear, textiles and wearing apparel 378 entities are ISA (23.9% of imported value) 3,144 entities are C-TPAT partners (62.1% of imported value) 16

17 Apparel, Footwear & Textile Center of Excellence & Expertise Laboratories and Scientific Services Primary Center Technical Advisor Alternate Center Technical Advisors HQ Science Officer CEE Director Dora Murphy Deputy Director Vacant Assistant Director Enforcement Assistant Director Validation & Compliance Vacant Assistant Director Partnership Branch Chief Branch Chief Vacant Branch Chief Branch Chief Matrix Members: Core Members: Import Specialist Senior Import Specialists Program Manager Asst. Port Director International Trade Specialists Operation Specialists Senior Import Specialists Import Specialist Supervisory Import Specialists Supervisory International Trade Specialist Auditor Field Analysis Specialist Supply Chain Security Specialists Core Members: Import Specialists Senior Import Specialists Entry Specialists Supervisory Entry Specialist National Account Managers Matrix Members: Import Specialists Senior Import Specialists Supervisory Import Specialists National Import Specialist Asst. National Import Specialist

18 ENFORCEMENT 18

19 AFT CEE Enforcement Enforcement activity can take place at time of entry or at post-release Some main areas of focus include, but are not limited to the following: Intellectual Property Free Trade Agreements Revenue evasion Transshipment Enforcement actions involving participating accounts are coordinated with the Center prior to issuance. 19

20 AFT Enforcement Focus on areas of risk Intellectual Property Rights 38% of all FY 14 IPR seizures were wearing apparel/footwear/textile related. Nearly 9,000 seizures with MSRP of $171 million in FY14. 20

21 AFT CEE Enforcement Operations The goal of the operations are to facilitate legitimate trade while enforcing the laws and regulations against violators. The AFT CEE works with the participating accounts to establish concepts/plans for future operations. In addition, operations focus on protecting our participating accounts from illegal importing/expor ting of their products. 21

22 AFT CEE IPR Enforcement Conducted Multiple IPR Operations with Hundreds of Seizures with total MSRP value over $17 million. Participated in several National/Local IPR Operations 22

23 Textile Enforcement OPERATION SUPER FAKE Intellectual Property Rights Intercepted 700 shipments of counterfeit merchandise valued at $12 million as part of a Super Bowl XLIX focused operation conducted on Jan at the DHL facility in Cincinnati. 23

24 IPR Recordation The AFT CEE recommends all registered Intellectual Property is recorded with CBP. All product manuals with recorded trademarks can be submitted to CBP for inclusion in our internal Product ID Guide. The IPR Product ID Guide allows all CBP personnel (e.g., Officers, Import Specialists, Entry Specialists, etc.) immediate access to the recorded trademarks. The IPR Product ID Guide is only for CBP use and can not be viewed by outside stakeholders. 24

25 AFT Enforcement Focus on areas of risk Revenue Duty collected by CBP on footwear, textile and apparel goods still accounts for approximately 45% of all duties The average duty rate for textile, apparel and footwear is 17% and more than $17 billion of entered textiles and wearing apparel claim preferential tariff treatment, placing textiles and apparel at a high risk for non-compliance. Misclassification and undervaluation are schemes to evade high duty rates on textiles and footwear 25

26 AFT Enforcement Focus on areas of risk Trade Agreements 17% of imported value claims preferential treatment False preferential claims undermine trade agreements 26

27 Textile Enforcement Focus on areas of risk Trade Agreements There are 14 Free Trade Agreements. Australia (AFTA); Bahrain (BFTA); Chile (CFTA); Central America Dominican Republic Free Trade Agreement (CAFTA); Israel (ILFTA); Jordan (JFTA); Morocco (MFTA); North American Free Trade Agreement (NAFTA); Oman (OFTA); Peru (PTPA); Singapore (SFTA); Korea (UKFTA): Colombia (CTPA); Panama (PATPA) There are also several Special Trade Programs with various countries, they are as follows: African Growth and Opportunity Act (AGOA); Caribbean Basin Trade Partnership Act (CBTPA); Caribbean Basin Economic Recovery Act (CBERA) and Generalized System of Preferences (GSP). Currently, GSP is expired. 27

28 On-Site Verification CBP utilizes Textile Production Verification teams (TPVTs) to conduct on-site verification of foreign textile and wearing apparel manufacturers. These teams review and verify production capability and compliance with the terms of FTAs and trade preference programs. The TPVT visits help deter circumvention of the preference program requirements, as well as educate foreign governments and manufacturers. 28

29 Effective Enforcement Targeting Center and Industry Partners work collectively to define low-risk suppliers and sharing trade intelligence to better define and segment high-risk suppliers. The Center s national approach is assisted through leveraging the Commercial Targeting and Analysis Center (CTAC) in Washington, DC. Established in 2009, CTAC serves as CBP s multi-agency fusion center for targeting commercial shipments which pose a threat to health and safety. Nine (9) Federal agencies co-located : CPSC, EPA, DOT, DHS, USDA, FDA. 29

30 Allegations Allegations can be submitted by the trade directly through the e-allegation (cbp.gov), a Field Office, a Port of Entry or the designated CEE. Within e-allegations, the Report Trade Violations is to be used to report the following illegal trade activity: Misclassification of imports Country of Origin marking issues Textile/Trade violations IPR infringement Export issues Healthy and Safety Issues. All allegations affecting a participating account are forwarded to the CEE. 30

31 Way Forward Expand number of Participating Accounts Continue focus on: Streamlining entry summary and post entry summary processing Expediting cargo release Reducing paperwork Expand bi-directional training CBP training for the AFT industry on key issues AFT industry training for CBP PRECLASSIFICATION 31

32 What Now? Apply to be part of the Centers of Excellence & Expertise under the current Federal Register Notice Contact: Dora Murphy, Apparel, Footwear and Textiles Center Director San Francisco Field Office U.S. Customs and Border Protection (415) x