CBP TRADE FACILITATION AND CARGO SECURITY SUMMIT HIGHLIGHTS
Green Worldwide Shipping attended the 2023 Trade Facilitation and Cargo Security Summit presented by U.S. Customs and Border Protection (CBP) in Boston last week. Formerly known as the Customs Trade Symposium, over 1,300 representatives from government agencies, carriers, brokers, forwarders, importers, exporters, and trade associations gathered to share ideas and discuss the biggest issues facing the supply chain today.
Acting Commissioner for U.S. CBP Troy Miller delivered an opening address commemorating the 20th anniversary of the creation of the Department of Homeland Security, which was followed by an interview with Ian Saunders, the U.S. candidate for Secretary General of the World Customs Organization. The U.S. finalized Mutual Recognition Arrangements (MRA) in a signing ceremony between the U.S., Guatemala, and Columbia to round out the opening day of the event.
MUTUAL RECOGNITION ARRANGEMENTS
Mutual Recognition Arrangements (MRA) signify that these countries maintain CTPAT-compatible supply chain security programs, and use the same or similar requirements, standards, and verification processes. The new MRA with Guatemala and Columbia bring the total held with the U.S. to 18 countries.
Business and government integrity, e-commerce, and cybersecurity featured heavily in panel discussions and break-out sessions. Broker and Cargo modernization, including the 21st Century Customs Framework and ACE 2.0 were prominent topics, but the headliners were Forced Labor, in particular the Uyghur Forced Labor Prevention (UFLPA), and Supply Chain Security as it pertains to both e-commerce and cargo.
UFLPA
Of interest was CBP’s stance of “rebuttable presumption” with regard to the UFLPA. This means that CBP presumes all products that touch the Xinjiang region in China in any way were made with forced labor, and the burden is on the importer to disprove this assertion. There is no “innocent until proven guilty;” the guilt is assumed. The “in whole or in part” language of the act means that the origin of any inputs – dyes, powers, silicon wafers, raw cotton, yarns, etc. – that go into an imported good are suspect, regardless of the Customs country of origin of that good declared at entry. CBP warned they will be investing in better technology to detect UFLPA raw materials and products, urging all importers to begin digging deeply into their supply chains now rather than waiting for a detention order.
SUPPLY CHAIN SECURITY
Supply chain security (including smuggling and organized theft) and e-commerce also featured heavily in discussions. Attendees learned that many crimes that seem random or unrelated may in fact be connected and part of a larger, potentially international, organization. Homeland Security Investigations, a division of DHS, has connected minor gift card scams and insurance fraud to the same organized groups infiltrating distribution centers and plundering ocean containers at ports and rail yards. Everyone in International Trade – carriers, forwarders, brokers, importers, and exporters – should adopt the “if you see something, say something” tenet. What seems like an isolated incident may have greater implications. The organized theft groups are also growing more creative with smuggling, including creating false floors in containers, hiding drugs inside spare tires and stowing contraband in unusual nooks in vessels, such as the rudder blade compartment. One case study presented described cloned container seals created and affixed after the original one placed by the shipper was broken to access the goods inside.
CBP’s Trade Facilitation and Cargo Security Summit offered a wealth of information about security, forced labor, technology and responsible business practices, and related issues facing the supply chain industry today. Green Worldwide Shipping will continue to work closely with government agencies, customers, and vendors to ensure the safe, responsible movement of freight in the supply chain.
Read more about Green’s commitment to becoming the most responsible and sustainable freight forwarder: Green Worldwide Shipping Sustainability
