the future role of customs professionals

The Future Role of Customs The Future Role of Customs ProfessionalsProfessionals

National Customs Brokers and Forwarders Association of America

Federico C. Zuniga

Chairman of the Board


New Security ProgramsNew Security Programs

1)1) 24 Hour Rule (e-manifest)24 Hour Rule (e-manifest)

2)2) 10+2 Security Filing10+2 Security Filing

3)3) CSI (Container Security Initiative)CSI (Container Security Initiative)

4)4) CTPAT CTPAT (Customs & Trade Partnership Against Terrorism)(Customs & Trade Partnership Against Terrorism)

5)5) ATS (Automated Targeting System)ATS (Automated Targeting System)


Affects on Trade due to New Security Affects on Trade due to New Security MeasuresMeasuresIncreased exam rates at border crossingsIncreased exam rates at border crossings

From 2002 to 2007From 2002 to 2007

Truck Truck 10.5% to 25.3%10.5% to 25.3%

VesselsVessels 2.3% to 3.8%2.3% to 3.8%

RailRail 19.7% to 85.3%19.7% to 85.3%

All ModesAll Modes 8.7% to 21.8%8.7% to 21.8%


What do these numbers mean?What do these numbers mean?• 11.1 Million truck crossings in 200711.1 Million truck crossings in 2007

2,808,300 exams (1 in 4 trucks examined)2,808,300 exams (1 in 4 trucks examined)

• 11.6 Million sea containers in 200711.6 Million sea containers in 2007 440,800 exams (1 out of 27 sea containers examined)440,800 exams (1 out of 27 sea containers examined)

• 2.7 Million rail containers in 20072.7 Million rail containers in 2007 65.6% increase in exams since 200265.6% increase in exams since 2002

• 25.6 Million for all modes in 200725.6 Million for all modes in 2007 1 in 4.5 movements are examined1 in 4.5 movements are examined


Results of new security programs on the Results of new security programs on the Customs Brokerage IndustryCustoms Brokerage Industry

1.)1.) StructureStructure

2.)2.) DisciplineDiscipline

3.)3.) AccountabilityAccountability

The Future Role of Customs Brokers The Future Role of Customs Brokers Strengthening the Customs-Trade Strengthening the Customs-Trade

Cooperative PartnershipCooperative Partnership

1.)1.) AEO (Authorized Economic Operator)AEO (Authorized Economic Operator)

2.)2.) Mutual RecognitionMutual Recognition

3.)3.) SME’s (Small & Medium Enterprise Firms) !!!!SME’s (Small & Medium Enterprise Firms) !!!!

Strengthening the Customs-Trade Strengthening the Customs-Trade Cooperative PartnershipCooperative Partnership

Future role of Customs Brokers and Future role of Customs Brokers and Forwarders in the International Trade Forwarders in the International Trade BusinessBusiness

1.)1.) Scalability-Scalability- Customs Brokers have the ability Customs Brokers have the ability to communicate AEO – CTPAT as well as other security to communicate AEO – CTPAT as well as other security initiative requirements and benefits to SME’s with greater initiative requirements and benefits to SME’s with greater reach and reliability than government, since brokers deal reach and reliability than government, since brokers deal with these clients on a more regular basiswith these clients on a more regular basis


ScalabilityScalability

1.)1.) Brokers working in the United StateBrokers working in the United State

Approx 7,000 active filersApprox 7,000 active filers

2.)2.) Importers and Exporters Trading in the Importers and Exporters Trading in the United StatesUnited States

Over 500,000 active TradersOver 500,000 active Traders


Future role of Customs Brokers and Forwarders Future role of Customs Brokers and Forwarders in the International Trade Businessin the International Trade Business

1.)1.) Viability-Viability- In order to ensure SME’s that cannot meet In order to ensure SME’s that cannot meet AEO – CTPAT standards remain viable international traders, it AEO – CTPAT standards remain viable international traders, it must be possible that those companies receive some AEO – must be possible that those companies receive some AEO – CTPAT benefits if they use AEO – CTPAT authorized customs CTPAT benefits if they use AEO – CTPAT authorized customs brokers, the nature of these benefits will need to be discussed. brokers, the nature of these benefits will need to be discussed.

Trusted and known PartnerTrusted and known Partner


ViabilityViabilityContinued Education of our self and our staffContinued Education of our self and our staff

CCS (Customs Certified Specialist)CCS (Customs Certified Specialist)

Stronger relations between Customs Professionals on a Stronger relations between Customs Professionals on a Global BasisGlobal Basis

IFCBAIFCBA

(International Federation of Customs Brokers)(International Federation of Customs Brokers)


Future role of Customs Brokers and Forwarders in Future role of Customs Brokers and Forwarders in the International Trade Businessthe International Trade Business

Assumptions:Assumptions:1.1. Not all SME’s will wish to participate in an AEO or CTPAT program Not all SME’s will wish to participate in an AEO or CTPAT program

2.2. Customs Brokers will be able to qualify for AEO or CTPAT programs on Customs Brokers will be able to qualify for AEO or CTPAT programs on an International Basis with Mutual Recognition.an International Basis with Mutual Recognition.

3.3. Brokers will make a business decision about offering Benefits to their SME Brokers will make a business decision about offering Benefits to their SME clients.clients.

4.4. For many Traders there only route to AEO or CTPAT benefits lies in there For many Traders there only route to AEO or CTPAT benefits lies in there relationship with international trade professionals such as customs brokers. relationship with international trade professionals such as customs brokers.

The Future Role of Customs BrokerageThe Future Role of Customs Brokerage

Our Industry history will show we are Our Industry history will show we are the people who make international the people who make international traffic across borders happen in an traffic across borders happen in an efficient and seamless way.efficient and seamless way.

Trusted and Known PartnerTrusted and Known Partner

NCBFAANCBFAA The United States Economy as well as the Economy of The United States Economy as well as the Economy of

all other countries in the world depend on a vibrant all other countries in the world depend on a vibrant trade business. trade business.

It is required of everyone involved in International It is required of everyone involved in International Trade to do their part to secure as well as facilitate Trade to do their part to secure as well as facilitate International TradeInternational Trade

the future role of customs professionals

Documents

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ctpat program customs

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international trade

aeo ctpat benefits

ctpat programs

aeo ctpat standards

international basis