CBP Plans Changes to the In-Bond Process
During the May 9, 2008 meeting of the Departmental Advisory Committee on Commercial Operations of U.S. Customs and Border Protection and Related Homeland Security Functions (COAC), CBP officials discussed plans to change the in-bond process.
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According to CBP officials, the goals of CBP's planned changes are to (1) improve its oversight and enforcement of the in-bond requirements; (2) enhance accountability and tracking of in-bond movements; and (3) mitigate any security and revenue vulnerabilities that might exist in the current in-bond process.
Shorter, Standard In-Bond Cargo Delivery Times
CBP is working toimplement shorter delivery times for in-bond cargo and come up with a single standard delivery time that will translate across all modes of transportation.
Additional Information on In-Bond Application
CBP is also interested in including additional information on the in-bond application to facilitate pre-screening of in-bond cargo and facilitate the release of in-bond cargo at the original point of arrival. For example, CBP is looking to add a data element like a permit data field to record an agriculture or other agency permit on the in-bond application.
QP for Air, Automation Enhancements, and Electronic In-bonds
CBP is also working on the following changes to the in-bond process:
QP for air - CBP officials state that they are considering modifying the QP function so that it will be compatible with the air environment. CBP officials expect changes to the QP function to be implemented by late August 2008.
Automation - implementing automation enhancements to the existing Automated Commercial System (ACS) in-bond module, as well as detailed requirements for carrying those ACS enhancements over to the new Automated Commercial Environment (ACE) in-bond module.
CBP officials note that much of the automation work being done in ACS is to improve the reports that CBP uses internally to track and reconcile open in-bond entries.
Wholly electronic - eliminating paper in-bonds and moving the in-bond process to a wholly electronic environment.
Monitoring of diversions - creating a notice and response function related to the diversion of in-bond cargo. CBP describes this process as follows: whenever someone wants to change the port of destination for in-bond cargo they would make that request electronically, and a response would go back to the filer and the affected ports (original and new ports of destination).
Tracking containers - CBP is also looking at technology solutions for tracking. As an interim step before CBP has a functional conveyance security device (CSD), other solutions are being considered, such as Radio Frequency Identification (RFID) technology to track in-bond containers.
Regulatory Action Needed for Certain Planned Changes
CBP officials state that CBP will also be developing any rulemakings necessary to implement its planned changes in the in-bond program outlined above. (Note there is a pending proposed rule targeted to be published in June 2008 for centralizing the Continuous Bond program at the CBP National Finance Center. See ITT's Online Archives or 05/14/08 news, 08051415, for BP summary.)
(In an October 2007 interview, CBP Assistant Commissioner for Field Operations Winkowski said that CBP needs to find a way to improve its tracking of in-bond shipments without standing in the way of commercial reality and have more connectivity between its in-bond system and ACS and ACE. See ITT's Online Archives or 11/26/07 news, 07112605, for BP summary.)
(See ITT's Online Archives or 10/12/07 news, 07101205, for BP summary of CBP's testimony on its pending in-bond cargo report.
See ITT's Online Archives or 05/22/07 news, 07052205, for BP summary of a Government Accountability Office report on previously identified weaknesses in CBP's in-bond system.)