U.S. Department of Homeland Security U.S. Customs and Border Protection CBP

1. U.S. Department of Homeland SecurityU.S. Customs and Border Protection (CBP)  Overview of C-TPAT, CSI, and Secure Freight Initiative

2. After 9/11, the U.S. Government was re-organized to defend the United States against further attacks by Terrorists. In 2003, CBP became the United States Border Enforcement Agency, by combining some or all of three different border enforcement agencies, including U.S. Customs U.S. Immigration U.S. Border Patrol Immigration and Naturalization Service U.S. Agriculture CBP Impact Overseas

3. CBP Uses a Layered Approach First, it set out to become “one face at the border”, strengthening it’s position at the physical borders, at and between the ports of entry. The agency also looked to increase the “Zone of Security”, by introducing the 24 hr rule and stationing CBP Officers overseas to develop better information prior to departure on passengers, cargo and conveyances about to enter the United States. CBP also reached out to the importing and exporting community to work with them through supply chain management and security techniques. To coordinate existing operations and new programs, CBP set-up a state-of-the-art Command, Control, Communications and Intelligence centers called the the National Targeting Center Cargo (NTC-C) and National Targeting Center for Passengers (NTC-P). CBP Impact Overseas

4. CBP Attachés Support CBP’s operational programs in country: Immigration Advisory Program (IAP) Customs Trade Partnership Against Terrorism (validation visits) Container Security Initiative (CSI) Secure Freight Initiative (SFI) Capacity Building (training and technical assistance) Handle issues arising from trade and industry and the traveling public Intellectual Property Rights (IPR) protection Mala fide Traveler Intercepts Fraudulent Document Training CBP Impact Overseas

5. 5 Current Deployment of CBP Representative/Attaché's Belgium (2) Brasil (1) Canada (4) China (2) Dominican Republic (1) Egypt (1) Germany (1) Hong Kong (1) India (1) Italy (1) Japan (2) Kenya (1) Mexico (6) The Netherlands (1) Panama (1) Singapore (1) South Africa (1) South Korea (1) Thailand (1) United Kingdom (1)

6. Overview of CBP Programs that Impact Overseas Missions

7. Immigration Advisory Program Under IAP, teams of CBP employees examine the travel documents of foreign nationals in foreign airports prior to their departure. An IAP program officer working at the National Targeting Center (NTC) reviews advance information on travelers forwarded by the IAP teams and targets passengers that may present a risk or warrant more intensive examination. Passengers whose travel documents are invalid, expired or otherwise may have been altered, counterfeited or obtained through fraud are advised, as is the airline, before they leave their foreign location that they will likely be deemed inadmissible and denied entry upon arrival in the U.S.

8. Container Security Initiative CBP officials are deployed overseas at major international seaports to pre-screen shipping containers to detect and interdict terrorists’ weapons and other illicit material before arrival on U.S. shores. Through programs like CSI, CBP is partnering with foreign nations and private industry to expand our nation’s zone of security. 58 Largest Ports by Volume to the U.S. CBP CSI officials review around 200,000 shipments/week Over 1,000 high risk shipments 20%-25% mitigated by Host Nation research

9. Container Security Initiative Evolution of CSI CBP does not anticipate closing any CSI ports but will reduce personnel staffing at overseas locations in order to better reflect current operational needs. The program has developed significantly since its inception in 2002. CBP’s layered-strategy have evolved: 24-Hour Rule. 10+2 Importer Security Filing Transition from hard copy to electronic manifests. Available technology to allow for remote targeting and transmission of NII images. Host country governments will continue to mitigate high-risk cargo containers.

10. Container Security Initiative Evolution of CSI CBP personnel will continue to be stationed at most locations but at reduced staffing levels CBP will continue to evaluate the number of personnel in each location based on risk factors, volume, support of foreign government and economic conditions. Less personnel intensive, more technology driven Remote Targeting –National Targeting Center – Cargo Remote Examinations – CBP identified targets, exams performed by host government and NII image data transferred to NTC-C for analysis and release decisions

11. Customs -Trade Partnership Against Terrorism C-TPAT is a voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT recognizes that CBP can provide the highest level of cargo security only through close cooperation with the ultimate owners of the international supply chain such as importers, carriers, consolidators, licensed customs brokers, and manufacturers. C-TPAT offers trade-related businesses an opportunity to play an active role in the war against terrorism. By participating in this first worldwide supply chain security initiative, companies will ensure a more secure and expeditious supply chain for their employees, suppliers and customers.

12. C-TPAT Eligible Partners U.S. Importers Air Carriers U.S./Canada/Mexico Highway Carriers Mexico “Long Haul” Highway Carriers Rail Carriers Sea Carriers Foreign Manufacturers (limited to manufacturers Canada and Mexico) U.S. Customs Brokers U.S. Port Authorities/Terminal Operators, Third Party Logistics Providers (3PLs) FMC Registered

13. C-TPAT Eligible Partners C-TPAT Importers are examined on average 4.31 times less than non-C-TPAT members Tier 1: 1.99 times less likely to be examined Tier 2: 3.71 times less likely to be examined Tier 3: 7.26 times less likely to be examined Sea container inspection statistics: 1 out of every 38 for C-TPAT members vs. 1 out of every 8 for non-C-TPAT members

17. Mutual Recognition Agreements (MRA) Benefits of MRA (Source: COAC Meeting – February 2010) Customs Administrations and Industry Partners Benefit from MRA: Common Standards: Companies only have to conform to one set of security requirements. Risk Assessment Tool. Overseas company’s status is recognized by CBP and used as a risk-assessment factor. Less Redundancy/Duplication of Efforts. Separate validation visits not necessary Resources Conserved: No need for CBP to validate overseas partner certified by an overseas partnership program

18. Secure Freight Initiative (SFI) Background The U.S. Security and Accountability For Every (SAFE) Port Act of October 2006 required a pilot program in 3 foreign ports Both Non-Intrusive Inspection (NII) and Radiation Portal Monitors (RPM) to scan all US-bound containers (Section 231) laden in those ports for radioactive and nuclear material The Implementing Recommendations of the 9/11 Commission Act (“9/11 Act”) of August 2007 amended Section 232 of the SAFE Port Act and mandates that a container loaded on a vessel in a foreign port shall not enter the United States unless that container was scanned by NII and radiation detection equipment before it was loaded onto the vessel by July 12, 2012 The 9/11 Act provides the U.S. Department of Homeland Security Secretary with flexibility to extend the 2012 deadline in two-year increments

19. Secure Freight Initiative (SFI) Background The Secure Freight Initiative (SFI) pilot scanning project is a part of the U.S. layered maritime cargo enforcement strategy Integrated scanning systems, consisting of Radiation Portal Monitors (RPMs) provided by the U.S. Department of Energy (DOE) and Non-Intrusive Imaging Systems provided by CBP or the host nation Scan containers as they move through the foreign ports Data integrated utilizing optical character recognition (OCR) technology Transmitted to CBP officers who determine if the container should be referred to the host nation for secondary examination prior to lading.

20. Secure Freight Initiative (SFI) CBP met the legislative requirement to establish a 100% scanning pilot program in three locations and went beyond the legislative mandate by deploying SFI at a total of six: Port Qasim, Pakistan Puerto Cortes, Honduras Southampton, United Kingdom Modern Terminal, Hong Kong (SFI pilot study concluded on April 30, 2009) Gamman Terminal, Busan, Korea (Ended in 2010) Port of Salalah, Oman Identified diplomatic, technical, and logistical challenges: Political Will of Host Nations Limitations of current technology Transshipments Additional SFI deployments are contingent upon: Funding Political Will Advancements in scanning technology

21. Secure Freight Initiative (SFI)Security Filing Data (10+2) The Security Filing, commonly known as the “10+2” initiative, is a Customs and Border Protection (CBP) regulation that requires importers and vessel operating carriers to provide additional advance trade data to CBP pursuant to Section 203 of the SAFE Port Act of 2006 and section 343(a) of the Trade Act of 2002, as amended by the Maritime Transportation Security Act of 2002, for non-bulk cargo shipments arriving into the United States by vessel. Importer Requirements: U.S. Bound Cargo (Includes FTZ and IT) : requires the electronic filing of an Importer Security Filing (ISF) comprised of 10 data elements. Transit Cargo (FROB, IE and TE): requires the electronic filing of an Importer Security Filing (ISF) comprised of 5 data elements. Carrier Requirements: Vessel Stow Plans required for arriving vessels with containers. Container Status Messages required for containers arriving via vessel.

23. Secure Freight Initiative (SFI)Security Filing Data (10+2) Effective Date: The Interim Final Rule took effect on January 26, 2009 (60 days after the publication date). Compliance Date: In consideration of the business process changes that may have been necessary to achieve full compliance, CBP delayed the compliance date for a period of twelve months to provide the trade sufficient time to adjust to the new requirements. The full compliance (enforcement) date for the “10+2” requirements commences on January 26, 2010, one year after the January 26, 2009 effective date. CBP has received well over: 3.65 Million ISF-10s from over 1,950 ISF Filers representing more than 103,000 ISF Importers (IOR#’s) 95% acceptance rate CBP has also received more than: 6,475 vessel stow plans and 106 Million container status messages

24. Questions? Robert Thommen CBP Attaché Japan robert.thommen@cbp.dhs.gov www.cbp.gov