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July 30, 2006 

Staffing Shortages, AES and C-TPAT Issues Raised During House Trade Committee Hearing on Customs Issues

Last Tuesday, the House Ways and Means Trade Subcommittee held a hearing on budget authorizations for U.S. Customs and Border Protection (CBP) and other customs issues. In addition to the Commissioner of CBP and the Assistant Secretary for U.S. Immigration and Customs Enforcement (ICE), the hearing witnesses included representatives from the American Association of Exporters and Importers (AAEI), the National Customs Brokers and Forwarders Association of America (NCBFAA) and FedEx.

The private sector witnesses raised a number of important and disturbing issues during the hearing. For example,
NCBFAA's President stated that:

"Despite its promise, the truth is that CBP is not balancing its twin responsibilities of security and commercial operations. Resourcing for trade facilitation has dramatically diminished as the agency has scrambled to meet criticisms of its performance in the security realm. When the Government Accountability Office (GAO) pointed to disappointing output in Customs-Trade Partnership Against Terrorism (C-TPAT) validations, CBP quickly moved import specialists into these areas of responsibility, leaving a skeleton crew to serve the needs of U.S. trade. In the Port of New York and New Jersey, for example, trade inspectors numbered forty before 9/11 but were reduced to eight at a recent count. Similarly, in-bond inspectors at the Port of LA/Long Beach numbered twelve, but are now zero, as CBP shifts personnel to operate VACCIS equipment, which screens for security purposes.

These examples are representative of a wholesale diversion of personnel, as Customs robs Peter to pay Paul. The attention of CBP to its trade mission has rapidly diminished as it gives priority to security programs. Rank-and-file know this and fully understand that a successful career path at the agency calls for making their mark in C-TPAT, the Container Security Initiative, or other high-profile programs. The answer? Congress must insist that CBP keep its promise to dedicate sufficient personnel to conduct its commercial trade mission. Congress should set a floor for import specialists and other commercial operations personnel, fencing off these assets from diversion elsewhere within Customs."

The NCBFAA also correctly noted that CBP is withholding approval of the Census Bureau's "long-awaited Automated Export System regulations until Census relented on an unrelated matter -- its opposition to providing sensitive export data to overseas governments." NCBFAA said that:
"for its part, American exporters are opposed to providing information to overseas governments that might filter through to their competitors. Our view? NCBFAA feels strongly that the wholesale delivery of export information to foreign nations runs counter to our international trade interests. At a time when we are struggling with trade deficits, the United States should not be undermining the competitive standing of the very exporters that must bring these statistics more into balance."
In addition, the President of the National Treasury Employee's Union (NTEU), which represents 15,000 Customs and Border Protection Officers and trade enforcement specialists, said that"
"The NTEU is deeply concerned with the lack of resources, both in dollars and manpower, devoted to the facilitation and operations aspects of CBPÂ’s trade functions. Because of continuing staffing shortages in commercial operations personnel, experienced commercial operations professionals at all levels, who long have made the system work, are leaving or have left or are so discouraged that they are resigned to frustration. In addition, 25% of import specialists will retire or are eligible to retire within the next few years."
The complete testimony of the hearing witnesses can be found at the following link.

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