Trade Compliance

GHY discusses changes to international trade regulations and explores cutting-edge compliance strategies.

CBP Accepting Applications for Trusted Trader Pilot Aimed at Streamlining Supply Chain Security, Tra

Posted June 23, 2014

The U.S. Customs and Border Protection (CBP) recently issued a Federal Register general notice announcing the launch of the Trusted Trade Pilot testing phase.  The new test program combines the Customs Trade Partnership Against Terrorism (C-TPAT) initiative and the Importer Self-Assessment (ISA) program with the aim to “streamline the process through which importers can establish to CBP that they strive to secure their supply chains and strengthen their internal controls for compliance with the existing laws and regulations administered or enforced by CBP.”
CBP Logo
The objectives of the program are to:

  • Increase the efficiencies in the existing trade programs
  • Strengthen security
  • Identify low-risk trade entities
  • Increase overall efficiency of trade
  • Achieve integrated U.S. government collaborations
  • Enhance information sharing between government agencies
  • Lower the administrative cost of participants by streamlining the application and validation process

CBP seeks to encourage entities through incentives not currently available to members participating in both C-TPAT and ISA with a whole government approach to supply chain security and trade compliance by strengthening government collaboration between CBP and FDA and between CBP and CPSC. Some of the benefits of the program for participants will include the following:

  • Reduced FDA targeting/examination risk score
  • Penalty offsets upon request
  • Participants who also participate in the Reconciliation Prototype will be allowed to flag and unflag entries for reconciliation retroactively after the entry summary is filed
  • CBP will reduce the number of Foreign Trade Zone (FTZ) on-site inspections
  • Drawback claimants will be exempt from on-site visits from Drawback Specialists
  • Full desk reviews will be limited to no more than one (1) per year for drawback claimants
  • CBP will process Post-Entry Amendments (PEA) on unliquidated entries within a ninety (90)-day timeframe
  • In the post-release environment, test participants may have the ability to choose an exam location

Applications for participation in the test program can be submitted through July 16, 2014. Selected applicants will be notified individually of their participation date.