The CBP Trade Facilitation and Cargo Security (TFCS) Summit took place on March 26-28 in Philadelphia.
More info and registration here.
Conference Takeaways
Attendance
With over 1,200 attendees, the summit was very well attended. Attendees included: Customs Brokers, Importers, Consultants, Secretary of Homeland Security Alejandro Mayorkas, Acting CBP Commissioner Troy Miller, CBP Executive Assistant Commissioner AnnMarie Highsmith and more! We found it very rewarding to be in person and connect with others in our industry.
Good Data is Vital
CBP made very clear the importance of clear and accurate data entry when it comes to trade compliance for ensuring the security and health of the U.S. They mentioned issues receiving vague or inaccurate descriptions of goods; a specific example and frustration faced is when a single box is manifested, however, upon opening the box, separate, undeclared packets addressed to different consignees are found.
Fentanyl a Top Concern
One of the biggest concerns for CBP continues to be e-commerce de minimis ($800 or below duty free). These imports are risky in that they are introducing fentanyl and other synthetic drugs into the market. In almost every session, CBP mentioned the risk posed. Last FY there were 1 billion packages. Currently 4 million per day which is up from 2.8 million in the same period. JFK and LAX handle 45% of all de minimis shipments.
Fair Trade over Free Trade
How something is made is just as important as where it is made. CBP placed an emphasis on Fair Trade practices and compliance at the summit. A few key points on the topic were:
- Determining the correct Country of Origin requires insights at manufacturing stage. Importers should make the very best effort to have this accurate data.
- Forced labor awareness is vital. The Department of Labor website has a Better Trade Tool that can be used for identifying complicit countries.
- In line with forced labor discussions, overall supply chain traceability was a hot topic. The Global Business Identifier (GBI) Test was mentioned as a solution to improve the U.S. Government’s ability to efficiently identify high-risk shipments and facilitate legitimate trade. CBP will continue to focus on supply chain tracing tools and techniques and encourages the Trade to do so as well.
Green Trade for Combating Climate Change
Green Trade efforts were launched in June 202 with the goal of combating climate change by providing a framework to incentivize green trade, strengthen CBP’s environmental enforcement posture, accelerate green innovation, and improve climate resilience and resource efficiency. An example of this is srengthening existing enforcement against illegal logging, mining, fishing.
Nearshoring your Supply Chains
It’s something we’ve known for nearly four decades, but it was great to hear CBP highlight the importance of Mexico as one of the best options for nearshoring due to the proximity to the U.S., the infrastructure, and educated workforce. Viva Mexico!
Brokers and Trade Compliance
Another reminder to the Trade was the importance of Broker and Trade Compliance Managers in ensuring that Importers are making the most genuine and thorough effort possible to ensure safe and compliant supply chains! Together we can help ensure the secure transport of goods worldwide.
[Updated April 2024]
