Smarter & Faster Borders:Smarter & Faster Borders:Are They Really?Are They Really?

AAEA Annual MeetingsAAEA Annual MeetingsNAFTA at Year Ten: Impacts & Issues for NAFTA at Year Ten: Impacts & Issues for

Canada, Mexico, & the United StatesCanada, Mexico, & the United States

Parr Rosson & Flynn AdcockParr Rosson & Flynn AdcockDepartment of Agricultural EconomicsDepartment of Agricultural Economics

Texas A&M UniversityTexas A&M University

Two Distinct ErasTwo Distinct Eras

• Post CUSTA/NAFTA-Who’s in Charge??Post CUSTA/NAFTA-Who’s in Charge??– Increased Truck/Rail/Noncommercial TrafficIncreased Truck/Rail/Noncommercial Traffic

• Focus on Drug Interdiction, Expediting Focus on Drug Interdiction, Expediting Cargo, & Illegal ImmigrationCargo, & Illegal Immigration

• Post 9/11-Bureau of Customs & Border Post 9/11-Bureau of Customs & Border Protection in Charge!!Protection in Charge!!– Truck/Rail/Noncommercial TrafficTruck/Rail/Noncommercial Traffic

• Focus on Terrorism, Illegal Immigration, Drugs, Focus on Terrorism, Illegal Immigration, Drugs, Expediting CargoExpediting Cargo

• US Borders ‘Last Line of Defense’ Not FirstUS Borders ‘Last Line of Defense’ Not First

Smarter, Faster BordersSmarter, Faster Borders‘The Task at Hand’‘The Task at Hand’

• Border InfrastructureBorder Infrastructure

– 5,252 mile border with Canada5,252 mile border with Canada

– 1,989 mile border with Mexico1,989 mile border with Mexico

– 300 Land Ports of Entry-Exit300 Land Ports of Entry-Exit

– 95,000 miles Coastline & Waterways95,000 miles Coastline & Waterways

– 300 U.S. Seaports300 U.S. Seaports

– 429 Commercial Airports429 Commercial Airports

What Was Done?What Was Done?

• Formed Dept. of Homeland SecurityFormed Dept. of Homeland Security– Customs, APHIS Inspectors, INS Inspectors & Customs, APHIS Inspectors, INS Inspectors &

Border PatrolBorder Patrol– Food & Drug Admin.Food & Drug Admin. Still Operates at Border, Still Operates at Border,

but Under Dept. of Health & Human Svcs.but Under Dept. of Health & Human Svcs.

• Improve Coordination, Control, Entry/ExitImprove Coordination, Control, Entry/Exit

• Many New Programs DevelopedMany New Programs Developed

Effective March 1st, 2003

Department of Homeland Security

Secretary----------------------------------

Deputy Secretary

Under SecretaryScience &

Technology

Under Secretary Information Analysis &

Infrastructure Protection

Under Under SecretarySecretaryBorder & Border &

Transportation Transportation SecuritySecurity

Under Secretary Emergency

Preparedness & Response

Under Secretary

Management

Transportation Transportation Security Security

AdministrationAdministration

U.S. Customs U.S. Customs ServiceService

Border Security Border Security Functions:Functions:

Immigration & Immigration & Naturalization Naturalization

ServiceService

Animal & Plant Animal & Plant Health Inspection Health Inspection

ServiceService

Federal Law Enforcement

Training Center

Selected Wait Times for Commercial Truck Selected Wait Times for Commercial Truck Entering the United States, July 25, 2003Entering the United States, July 25, 2003

0 Min5-10 Min

15 Min

5-15 Min

10 Min

El Paso

Laredo

BuffaloDetroit

Blaine

Brownsville

Calexico

15-40 Min

0 Min

Legislation/RegulationsLegislation/Regulations• Bioterrorism Act 2002 (BTA)Bioterrorism Act 2002 (BTA)• 24 Hour Notification Rule-NAFTA Exempt24 Hour Notification Rule-NAFTA Exempt• FDA Prior Notice RuleFDA Prior Notice Rule: Noon Day Before: Noon Day Before• FAST- US/Canada Expedited Cargo ReleaseFAST- US/Canada Expedited Cargo Release• Customs-Trade Partnership Act Against Customs-Trade Partnership Act Against

Terrorism- Cargo Security (C-TPAT)Terrorism- Cargo Security (C-TPAT)• Automated Customs Environment (ACE)Automated Customs Environment (ACE)• Container Security Initiative (CSI)Container Security Initiative (CSI)

SMART Border SMART Border Accords-Accords-US/Canada 30 Point PlanUS/Canada 30 Point Plan

• PeoplePeople– Biometric IdentificationBiometric Identification– Resident CardsResident Cards– Visa Issuance CoordinationVisa Issuance Coordination– Air PreclearanceAir Preclearance– Compatible Data BasesCompatible Data Bases– Joint Staffing by Immigration OfficersJoint Staffing by Immigration Officers

SMART Border AccordsSMART Border Accords

• CargoCargo– Harmonized ProcessingHarmonized Processing

– Preclearance Away from BordersPreclearance Away from Borders

– Joint FacilitiesJoint Facilities

– Share Customs DataShare Customs Data

– Target Containers at SeaportsTarget Containers at Seaports

SMART Border AccordsSMART Border Accords• Infrastructure & SecurityInfrastructure & Security

– Intelligent Transport SystemsIntelligent Transport Systems– ProtectionProtection– Aviation SecurityAviation Security– Integrated Enforcement TeamsIntegrated Enforcement Teams– FingerprintsFingerprints– Remove DeporteesRemove Deportees– Freeze Terrorist AssetsFreeze Terrorist Assets

ImplicationsImplications

• Many New Programs at BordersMany New Programs at Borders

• Central ControlCentral Control

• Cargo & People Are Moving, ButCargo & People Are Moving, But

• Inconsistent Rules-FDA Not in DHS Inconsistent Rules-FDA Not in DHS LoopLoop

• Still UnderstaffedStill Understaffed

ImplicationsImplications

• Concerns About CoordinationConcerns About Coordination

• Resolution of Prior Notification RuleResolution of Prior Notification Rule– Implications for Supply Chain Efficiency Implications for Supply Chain Efficiency

& Just-In-Time Delivery& Just-In-Time Delivery

• Consequences of Increased Terror Consequences of Increased Terror ThreatThreat

• Information Systems Compatibility in Information Systems Compatibility in DHSDHS