CBP Issues its Performance and Annual Report for FY 2004

CBP states that the report is prepared to meet the objectives of the Reports Consolidation Act of 2000 to streamline and consolidate statutory financial management and performance reporting requirements into a single report.

The following are selected highlights of CBP's report:

28.1 million entry summaries in FY 2004, etc. CBP reports the following totals for FY 2004: value of imports - $1.41 trillion; total entry summary count - 28.1 million; duty collection: $25.7 billion; and number of consignees - 754,000.

118 companies applied for ISA participation, etc. At the end of FY 2004, 118 companies had applied for Importer Self-Assessment (ISA) participation representing 15% of the total import value, and 38 companies have been approved as certified ISA partners. (See ITT's Online Archives or 04/21/05 news, 05042105, for BP summary containing more updated information on ISA participation.)

eRuling Template to be upgraded to allow requests to be filed directly via CBP's Web site, etc. According to CBP, the web-based "e-Ruling Template," which was initially designed to be used as an email attachment, will be upgraded by CBP to enable requests to be filed and receipted directly on the CBP Web site without the use of email. In addition, a link between the Automated Commercial Environment (ACE) Portal and the eRulings template will be added to the web.

(See ITT's Online Archives or 04/20/05 news, 05042035 2, for BP listing of CBP's updated document outlining requirements for e-ruling requests via email.)

Regulatory audits. CBP reports that for FY 2004, Regulatory Audit completed 382 audits with another 261 in progress. The overwhelming number of audits completed were in Regulatory Audit priority areas. In addition, 91% of the targeted risks identified by Regulatory Audit were affirmed during the audit process.

Trade compliance in FY 2004. The Compliance Measurement (CM) program, which was temporarily suspended following the September 11, 2001 terrorist attacks but fully restored for FY 2003, collects objective statistical data to determine the compliance level of commercial imports with U.S. trade laws, regulations and agreements, and estimates the revenue gap. According to CBP, the overall trade compliance rate for FY 2004 was 94%, up from 93% in FY 2003.

Sampling methodology for reviewing drawback claims. CBP states that because the Automated Commercial System (ACS) cannot compare entry and export information electronically, CBP relies on a risk-based approach to review drawback claims. However, a better statistical methodology for reviewing the processing of drawback claims was needed so that the results of drawback testing could be statistically projected for analysis. As a result, in June 2004 CBP established a statistically valid sampling methodology for reviewing the processing of drawback claims.

Textile and apparel verification visits, etc. In 2004, Textile Production Verification Teams visited 12 high-risk countries where over 710 factories were visited. Of these, 103 refused admission, 224 were permanently closed and 38 had evidence of transshipment of goods. CBP notes that problems were uncovered in 94% of all factories visited.

In addition, in 2004, CBP seized over $22.7 million in goods imported with counterfeit documents claiming false countries of origin of Russia, Uzbekistan, Vietnam, South Africa, Maldives, Kenya, Botswana, Krygyzstan and Brunei.

Methodologies for collecting AD/CV duties, etc. CBP states that it is working to develop and implement methodologies to ensure that all imports subject to antidumping (AD) or countervailing (CV) duties are properly entered, liquidated and fully collected.

Initiatives undertaken this year include: amending the continuous bond guidelines to provide increased coverage for the highly volatile agri/aquaculture cases; improved communications between Commerce Department and CBP headquarters offices resulting in clearer, more timely liquidation notices; establishing direct contact between CBP field and International Trade Administration (ITA) analysts facilitating the cleanup of thousands of old unliquidated entries; etc.

(See ITT's Online Archives or 07/13/04 news, 04071305, for BP summary of the continuous bond guidelines for agri/aquaculture AD/CV cases.)

Intellectual property rights. CBP reports that overall there were 7,255 intellectual property rights (IPR) seizures in FY 2004 valued at $138.8 million.

FDA's PN Center incorporated into NTC, etc. During FY 2004, CBP's National Targeting Center (NTC) incorporated the Food and Drug Administration's (FDA's) Prior Notice (PN) Center, as well as CBP's Laboratory and Scientific Services.

CBP Performance and Annual Report for Fiscal Year 2004 available at http://www.cbp.gov/linkhandler/cgov/toolbox/publications/admin/cbp_annual.ctt/cbp_annual.pdf