US Customs to test trusted trader scheme

WASHINGTON, D.C.–US Customs and Border Protection is launching an 18-month programme to test a trusted trader initiative, combining security and trade compliance on the World Customs Organisation’s Authorised Economic Operator model.

The tests are a step toward integrated cargo clearance that relies on a common approach toward risk management instead of various agencies using separate criteria for enforcement, reports American Shipper.

Run with the Consumer Product Safety Commission and the Food and Drug Administration, a program  focuses resources on companies without proven compliance records to cut costs by streamlining application and validation processes.

US Customs currently operates two voluntary industry partnership programs: the Customs-Trade Partnership Against Terrorism (C-TPAT) and Importer Self-Assessment (ISA).

Trade professionals say that ISA’s requirements are too burdensome for most companies given limited benefits. Similar complaints have been lodged against C-TPAT, said the report.

Some importers also say advertised perks, like moving to the front of the line when cargo is selected for an X-ray exam, fail to materialise.

Expanding the trusted trader concept to other government agencies could provide the necessary incentive for more importers to sign up because other government agencies frequently are the roadblock for easy cargo clearance at ports of entry.

Industry groups have been advocating for multiple agencies to follow the same risk-management principles that provide expedited clearance and reduced paperwork requirements to low-risk shippers.

Customs said if it decides to implement the trusted trader programme after the test period, it will transfer ISA partners to the programme and discontinue ISA. Companies will have the option to opt out of the broader programme.