International trade is a critical component of the US economy, with US imports alone amounting to $2.2 trillion in 2011. The US Customs and Border Protection (CBP) is the primary agent charged with ensuring the smooth flow of trade. A recent report by the Congressional Research Service (CRS) analyzed the US import process and uncovered complex challenges CBP faces in creating import policy.
CRS found that tension underlies many aspects of import policy making because of CBP’s three competing goals:
- Facilitate the smooth flow of trade
- Enforce trade and customs laws
- Enforce import security laws
While trade facilitation involves promoting faster and more efficient trade flows, trade enforcement and import security involve identifying and preventing illegal flows – tasks that often involve slower cargo flows and reduced efficiency.
In order to overcome this tension, CBP’s current import strategy uses a risk management approach. This strategy segments importers into risk pools and focuses trade enforcement and import security procedures on higher-risk imports, while expediting lower-risk flows. In order to determine risk level, CBP requires importers to submit advance electronic cargo information, which is sent to the Automated Targeting System (ATS). ATS reviews this information and assigns a risk-based score to every incoming shipment. Businesses can also enroll in CBP’s “trusted trader” programs to receive low-risk trader status and become eligible for expedited processing.
CBP has also adopted a “multi-layered” approach to import policy. This means that security screening and enforcement occur at multiple points in the import process, beginning before goods are loaded at foreign ports (pre-entry) and continuing after goods have been admitted into the US (post-entry). Importers are subject to security measures such as radiation detection scanning, non-intrusive inspections (NII), trade enforcement examinations, and post-entry audits.
For more information on current CBP import policies, please read U.S. Customs and Border Protection: Trade Facilitation, Enforcement, and Security.
