At the same time, the appointment of Janet Napolitano as Secretary of Homeland Security signaled a welcome shift in the CBP’s approach, Vargo said. “Secretary Napolitano was a border-state governor. She understands trade; she gets it.” Similarly, Commissioner Bersin already has met with a number of industry groups to hear their concerns, Vargo added.
Participants in the hearing outlined several initiatives that could streamline these processes, but have so far failed to do so:
Several potential legislative and administrative changes may streamline the process of importing and exporting goods.
With the World Trade Organization predicting a 9.5 percent increase in world trade this year, businesses and government agencies know that it will pay to be as efficient as possible in importing and exporting goods. However, the U.S. appears to be falling short in its efforts. The World Bank’s “Doing Business 2010” report ranked America 18th in these efforts. While not terrible, it certainly leaves room for improvement. One reason for the less-than-impressive showing: The WTO estimates the cost of exporting one container from the U.S. at $1,050. The corresponding number for Singapore is $456.
Capitol Hill appears to be noticing. Last month, Rep. John Tanner Big Fat Finance, chair of the House Ways and Means Subcommittee, hosted a hearing on “U.S. Trade Facilitation and Enforcement in a Secure Environment.” The hearing was a prelude to a Customs reauthorization bill that Tanner and Kevin Brady, R-Texas, expect to introduce by the end of the year.
• Automated Commercial Environment (ACE): a computer program and data warehouse for U.S. Customs and Border Protection
• International Trade Data System: a computer program that will allow multiple government agencies to use data from ACE. Currently, importers can end up filing separate reports to 40-some agencies, according to testimony at the hearing.
• Account Management: An approach to managing imports in which importers are segregated by risk level, and governmental agencies focus their efforts on higher-risk importers.
Delays and a lack of clear requirements have plagued widespread implementation of both computer systems, according to Alan Bersin, commissioner of U.S. Customs and Border Protection. That has slowed participation by the private sector as well as other governmental agencies. Gaining a handle on the interaction between the two systems now is a priority for CBP, Bersin noted.
While it’s unlikely that cross-border trade will be as streamlined and easy as businesses would like, these changes give reason for optimism. ###
Rep. Tanner started by noting that trade practices had been greatly altered in the aftermath of September 11, 2001. “Bringing goods into the United States has become more complex as a result of changes to our importing processes to mitigate security threats.” He added that “commerce without security is risky; security without commerce is economically damaging.”
A few are occurring. In May, for instance, Rep. Larry Kissell (D-North Carolina) introduced the the Textile Enforcement and Security Act. Last summer, Senator Max Baucus (D-Montana) introduced the “Customs Facilitation and Trade Enforcement Reauthorization Act of 2009.”
Still, much work remains. Cass Johnson, president of the National Council of Textile Organizations, discussed several egregious violations of trade agreements that are occurring, at a great cost to American jobs and companies. In addition to the changes to be made at CBP, some legislative changes are needed, Mr. Johnson noted.
To date, however, the priority appears to have shifted overwhelmingly to security and enforcement, with trade facilitation taking a clear back seat, according to testimony from Frank Vargo, vice president for international economic affairs with the National Association of Manufacturers. “There hasn’t been the balance between security and trade facilitation that is needed.”
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