OT_Industry_Day_Brief_Public.pptx

FY25 Industry Partnership and Outreach Program

Programmatic Industry Day for Office of Trade

U.S. CUSTOMS AND BORDER PROTECTION OFFICE OF TRADE

TRADE TRANSFORMATION OFFICE DIRECTORATE

Trade Transformation Office (TTO) The Trade Transformation Office (TTO) provides outcome-oriented, transformational, and innovative contributions to the Office of Trade (OT), 49 Partner Government Agencies (PGA), and the trade community by identifying capability gaps and operational needs, supporting acquisition and investment planning oversight, and assessing how new and emerging technology can be harnessed to further advance our trade mission.

TTO – Mission Capabilities Supported

TTO is responsible for oversight of the Automated Commercial Environment (ACE) program and serves as the bridge between ACE policy-makers, system developers, and end users.

ACE

TTO is responsible for the Advanced Trade Analytics Platform (ATAP) program, an effort to use the vast universe of trade data to prevent illicit trade and improve visibility into supply chains.

ATAP

TTO houses the Office of Trade’s Portfolio Acquisition Executive (PAE) and Procurement Branch, which provide expertise and oversight in procuring mission-essential systems and services.

PAE & Executive Procurement

Future Capabilities TTO actively engages in the future strategic vision of the Office of Trade to provide strong foundations of future technology investments which will facilitate, secure, and reduce costs related to the movement of cargo.

Business Transformation and Innovation Division BTID actively engages in the future strategic vision of the Office of Trade (OT) to provide strong foundations of future technology investments that will facilitate, secure and reduce costs related to the movement of cargo.

Assesses and analyzes new technologies within the parameters of CBP’s business needs Provides futuristic visions on products and software so the agency can proactively pursue changes in the technical environment Operates with a fail-fast methodology for new projects or initiatives Coordinates and centralizes efforts across other CBP innovation offices to ensure cross-pollination of ideas Liaises with other federal innovation centers to share best practices Assists with transition of proofs of concept (POC) from innovative ideas into operational assets Supply Chain Modernization Oil (Pipeline): Affirms Free Trade Status (FTA) status no matter how many times oil is sold on the open market Steel: Steel tracked from manufacturer to importation e-Commerce: Enhanced traceability of goods bought and sold by online retailers Food Safety: Perishable goods tracked from farm to import Natural Gas (Pipeline): Origin determination

U.S. Single Window for Trade: ACE

TRANSMIT

ACE interacts with PGA systems to enable interagency processing

Status notifications sent to trade community users Data Interfaces

Log into the ACE Portal to:

Run reports to query transactional data Manage account (grant cross-account access, merge accounts, etc.)

Manage periodic monthly statement information

ACE Secure Data Portal

Data Interfaces

Use to file:

Importer Security Filing (ISF) Import/export manifests Electronic in-bonds Entries Entry summaries Export commodity data Post-summary corrections Supporting documentation

ACE Secure Data Portal

Use to file:

ISF data Import truck manifests & in-bonds Export commodity data Responses to CBP forms Protest Create blanket declarations Arrive/export in-bonds

MANAGE

ACE offers the trade community a simplified process for submitting data and interacting with CBP and Partner Government Agencies (PGA). The graphic below provides a snapshot of how to file and access data in ACE.

TRADE

ACE processes and stores data received

Trade community files data directly to ACE

How It Works

ACE sends responses to trade community users as needed

U.S. Single Window for Trade: ACE

ACE is the primary system for processing trade data required by government agencies. It implements the U.S. “single window,” connecting CBP with partner government agencies and the trade community.

In FY 2024, CBP processed $3.4 trillion in imports and $2.2 trillion in exports, and collected about $94 billion in duties, taxes, and fees On a typical day in FY 2024, CBP processed through ACE:

$9.2 billion worth of imported goods 104,796 entry summaries for assessing duty and compliance $257 million in duties, taxes, and other fees Agreements across CBP and more than 49 PGAs Streamlines paper submissions and multiple entry systems Automates 269 forms required for imports and exports Makes it easier to comply with U.S. laws and regulations, while enhancing transparency in the movement of goods International Trade

ACE

Partner Government Agencies

Future of Trade: ACE 2.0

Capacity to evolve to address how e-commerce is changing Non-traditional actor engagement (e.g., producers, farmers, mills, etc.)

Ability to set technology standards, keeping a level playing field for all countries Full supply chain visibility for CBP and partner government agencies

International data exchange leadership with other countries

Fully electronic billing and payments, reducing cash and checks at ports

Vision

Through the ACE acquisition program, ACE 2.0 will add new functionality and capability to ACE and implement next generation business processes. This modernization will secure our ability to better identify high-risk imports, increase supply chain transparency, verify compliance, and ensure appropriate revenue collection.

Advanced Trade Analytics Platform (ATAP) ATAP enhances CBP's ability to execute the trade mission through the development of capabilities that allow us to predict and identify threats and opportunities to best deliver consequences and facilitate compliant trade.

ATAP develops customized data analytics, machine learning, and AI solutions for complex problems faced by CBP daily, providing key insights into the trade universe and supporting a more efficient and effective response strategy.

Identify potential instances of revenue recovery and promote time savings in investigations.

Highlight patterns and indicators of evasion used by bad actors in their efforts to remain undetected by CBP.

Provide data exploration capabilities that allow for CBP to more rapidly survey the landscape of trade and identify anomalies in their individual areas of responsibility.

ATAP is part of the CBP teams that support the agency's efforts around fentanyl interdiction, de minimis compliance, and forced labor enforcement, and supports all offices involved in the execution of CBP's trade mission.

TRADE REMEDY LAW

ENFORCEMENT DIRECTORATE

To lead national trade enforcement activities and programs that detect, deter, and disrupt illicit trade to assure trade compliance, safeguard U.S. national and economic security, and protect U.S. businesses and consumers.

TRLED Mission

Forced Labor Enforcement Enforce and Protect Act (EAPA) Environmental and Natural Resources Enforcement Supply Chain Tracing

Trade Enforcement Highlights

Forced labor is defined as all work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer work or service voluntarily.

Forced Labor Enforcement Investigate and issue timely enforcement actions for forced labor violations.

Formalize, standardize and publish new and updated key policies and procedures Engage with like-minded international partners Establish a long-term plan to issue forced labor remediation standards Improve outreach and engagement with key stakeholders

Enforce and Protect Act (EAPA) Signed into law through TFTEA in August 2016 Enforcement Operations Division (EOD) conducts investigations with partners from TRA, OFO, OCC, INA, OS, and HSI within strict statutory timelines Launched more than 300 investigations Identified over $1 billion in AD/CVD duties owed to the U.S. Government Ongoing partnership with trade community to increase understanding of EAPA in combating fair trade practices and volume of allegations submitted

10/15/2024

Natural resource crimes are a worldwide concern with far-reaching implications for the environment, public health and safety, and socio-economic development.

CBP is focused on six major areas of enforcement: the United States-Mexico Canada Agreement, illegal logging, illegal mining, conflict diamonds, illegal fishing, and wildlife trafficking.

Environmental and Natural Resources Enforcement

Global Business Identifier (GBI) test in March 2024 Provided guidance on best practices for applicability reviews and importer responsibilities in Uyghur Forced Labor Prevention Act (UFLPA) enforcement CBP Factsheets – Due Diligence in Global Supply Chains

TRADE REGULATORY AUDIT

DIRECTORATE

Role of the Trade Regulatory Auditor The Auditor is a multifunctional professional series

Highly trained in accounting, auditing, forensic analysis, data analysis, investigation, evidence collection and risk identification

Astute guardians of our nation’s economic security within CBP

Work is easily represented by the calculatable return on investment and the 100’s of millions in potential loss of revenue they routinely discover annually

Discover fraudulent schemes that go beyond finding loss revenue, some include intellectual property theft, forced labor, unfair foreign competition with the US domestic market, textile transshipment, quota avoidance, and many other trade-based money laundering schemes that end in successfully argued court findings leading to the dismantling of many illicit networks

To initiate their work Auditors may

Receive referrals from other operational components or may identify importers with significant data or processing anomalies that present as non-compliance risks.

Must stitch together the transactional history and networks of the importer to present the best picture possible of the potential risks posed by the importing activity since CBP’s data is not located within one system or combined with commercial sector analytic programs

Have used a tool called the Quantitative Risk Assessment Management tool that attempts to Z-score potential risk factors based on known or described data patterns

Take advantage of commercially available software when procured by the agency to augment their ability to identify commercial networks and the identify of the importer (foreign or domestic) and perform research using the internet to also fill in as many gaps as possible.

Most Significant Challenges

AI/ML can help auditors ensure compliance with complex regulations and standards. By applying AI algorithms to analyze transactions and operations, auditors can quickly identify potential compliance issues and take appropriate actions to address them.

Large Data set consumption and analysis, including Predictive Analytics

Automated Data Analysis: AI/ML can automate the process of data collection, extraction, and analysis, which are crucial components of auditing. AI/ML algorithms can analyze vast amounts of data quickly and accurately, identifying patterns, anomalies, and potential risks more effectively than manual methods.

Advanced Data Analytics: AI/ML enables auditors to leverage advanced data analytics techniques, such as predictive analytics and data visualization. These techniques help auditors gain deeper insights from data, highlight risks/threats, and make more informed decisions.

Have AI take auditee data sets and identify reporting errors over doing mathematical random sampling and projecting sample findings.

Enhanced Compliance

Continuous Auditing

Traditional auditing is often performed on a periodic basis. However, AI/ML enables the possibility of continuous auditing, where data is continuously monitored and analyzed in real-time. This allows auditors to identify issues and anomalies promptly, leading to more proactive risk management and fraud detection.

Most Significant Challenges Cont’d

Leverage AI to generate initial risk profiles and audit reports based on acquired information from both CBP systems and non-CBP systems

Continuous Auditing

Leverage AI for risk prioritization and identify the most viable candidates while also monitoring past audited entities and any significant shifts in business practices.

Have AI perform anomaly detection and identify potential evasion schemes based on similar or matching data attributes.

Leveraging AI to help develop audit inquires by having AI review industry business trends, volumes, prices, etc. and help auditors design audit plans and key questions for the Auditee’s

Information integration across CBP systems and external systems is a major challenge and creates significant time to build risk assessment profiles.

The amount of time required does not allow for timely action in some cases and an entity may have gone out of business before an audit assignment is started.

Expanding the universe

When an audit has a positive finding AI/ML could assist auditors to review supply chain associations where there are other entities with a similar violative fact patterns.

Leverage AI for Real time event data reporting

As soon as entities are notified, they start making major shifts in their import practices and or file a prior disclosure (PD). TRA does not always see the shift nor get notified of a PD until late in the process leading to a lot of wasted process time that could have been spent on another assignment

AI/ML algorithms can detect unusual patterns and anomalies in financial transactions, which can help identify potential fraud or irregularities. By analyzing historical data and applying machine learning techniques, AI systems can learn from patterns of fraudulent activities and flag suspicious transactions for further investigation.

Leverage AI to expose masking and business networks

Entities will start as an Importer of record and shift over time to a consignee, notify or other party to conceal their true identity in the transaction.

Fraud Detection

Large Language Models (LLM) and Natural Language Processing (NLP)

LLM/NLP would more efficiently assist auditors analyzing unstructured data, such as contracts, emails, and other textual documents.

What other businesses do responsible parties have direct ties and affiliations to, and their associated business engagements

Identifying the responsible parties within the corporate structure that CBP can hold liable and go after for penalty purposes and outstanding debt owed to the government.

AI-powered systems can extract relevant information, identify potential risks or discrepancies, and assist auditors in reviewing and structuring large volumes of text-based information.

Improved Efficiency and Accuracy

Based on AI advising the cost of doing and not doing specific assignments.

AI/ML automation can significantly improve efficiency and accuracy of auditing processes. Automating routine data collection and verification tasks enable auditors to focus on higher-value activities, such as decision-making and enforcement follow up.

Leverage AI to assist in building the most comprehensive National Annual Audit Plan (NAAP)

Trade Regulatory Audit (TRA) Challenges faced in implementing AI

With AI/ML being new, government entities are just now getting into a space that private companies have been exploring and set standards that profit them. Government entities will need time to explore and define laws, policies and standard that will be useful for its operation. Our organization needs to broadly enable AI capabilities immediately, so it is available for development.

AI use is growing, but only in pockets for well funded programs. OT/TRA does not have the funding to acquires its own AI models or tools. An enterprise-wide solution should be made available and leveraged across the mission space. TRA will leverage what has been explored or approved DHS/CBP for a reduced cost and customize as needed.

This approach would allow OIT to harvest exceptional capabilities and integrate them into more formal business and automation processes.

Industry could create low level AI programs that require smaller footprints, less specialized knowledge and can operate across enterprise libraries simultaneously.

Industry needs to understand CBP/OIT AI/ML standards so components can leverage industry to create AI training programs for employees to enable more users to develop and mature AI content while also leveraging the AI to augment basic writing, analysis and similar capabilities.

How can industry help address these mission challenges?

Trade Regulatory Audit (TRA)

TRADE POLICY AND PROGRAM DIRECTORATE

Trade Policy & Programs (TPP) Directorate Our Mission Trade Policy & Programs (TPP) Directorate's mission is to develop national trade policy and administer priority trade programs to facilitate lawful trade, enforce laws, and protect the American economy.

TPP works closely with partnering federal agencies at U.S. borders as well as the international trade community to promote secure and compliant trade.

PTIs represent high-risk areas that can cause significant revenue loss, harm the U.S. economy, or threaten the health and safety of the American people. TPP administers all seven of CBP’s PTIs as codified in the Trade Facilitation and Trade Enforcement Act of 2015:

Agriculture Antidumping and Countervailing Duties Import Safety Intellectual Property Rights Revenue Textiles Trade Agreements

CBP Priority Trade Issue (PTI) Programs Interagency and Public-Private Collaboration

TPP leads the 21st Century Customs Framework (21CCF) initiative that will position the U.S. Government for the future of trade.

Trade Modernization

Key Focus Areas

Global Business Identifier (GBI) Test Overview The Global Business Identifier (GBI) Test examines the functionality and effectiveness of global identifiers as a tool to improve U.S. government visibility into imports and facilitate supply chain traceability.

The GBI Test involves implementation of GBIs within the Automated Commercial Environment (ACE) to gather insight and feedback from participants. CBP is exploring the potential for GBIs to address data gaps caused by the outmoded Manufacturer/Shipper Identification number (MID) requirement and identifying opportunities to leverage global identifiers more broadly to comply with emerging supply chain traceability demands.

Through verifiable identifiers managed by GS1 U.S., Dun and Bradstreet (D&B), and the Global Legal Entity Identifier Foundation (GLEIF), GBI data provides CBP and PGAs extensive visibility into global supply chains.

GBI Test participants are at the forefront of change, informing customs adoption of traceability solutions to support a new era of trade.

What other public/commercially available entity identifiers or other tools is industry using to trace their supply chains that CBP should look into?

What are solution providers doing to prepare importer and supply chain clients for the roll out of traceability-related mandates abroad (e.g., the EU’s Digital Product Passport and Carbon Border Adjustment Mechanism)?

Questions for Industry:

The Case for GBI: Traceability Drivers by the Numbers

Trendspotting in the U.S.

149 HTSUS classifications of fish and seafood imports prohibited if linked to Russian Federation origins

$3.6 billion+ worth of goods detained by CBP since the UFLPA rebuttal presumption was enacted in June 2022

CBP is processing 1 billion+ small packages annually

CBP is enforcing 724 active AD/CVD orders, more than double the amount in 2016

50.4 million entry lines of FDA-regulated goods required admissibility decisions in FY2023, many of which were subject to traceability requirements under the:

Food Safety and Modernization Act Drug Supply Chain Security Act Traceability helps CBP verify trade compliance amid an increasingly complex trading system and while managing an ever-evolving mission space

5 commodity types covered in draft bill requiring due diligence on goods linked to illegally deforested land

Tracing back to the raw materials origins for UFLPA applicability reviews

Uyghur Forced Labor Act

Sanctions Enforcement Tracing back to the originating waters and vessels for certification at entry

FOREST Act of 2023 Tracing back to original harvest location for certification at entry Global View

The modern trade environment continues to demand more of government and industry when it comes to supply chain traceability and visibility

Over 10% of Executive Orders issued since January 2021 have a nexus to supply chain traceability, security, and resilience

Six categories of goods subject to embedded carbon emissions reporting under the EU Carbon Border Adjustment Mechanism 17+ types of goods subject to EU prohibitions on imports from Russia, including diamonds, gold, paper, cement, spirits, and copper imported into the EU required to have digital product passports capturing product lifecycle details by 2027 and 2030 100% of batteries & textiles

CBP is enforcing 51 active Withhold Release Orders, up 44% since FY2019

Green Trade Strategy Our Vision Establish CBP as a champion for the green economy and a leader in the fight against climate change and environmental degradation by facilitating the global transition to green trade and serving as a responsible steward of our own environmental footprint.

“CBP will advance a global trading system that is transparent, ethical and fair, and that safeguards environmental standards and human rights.”

CBP’s Green Trade Strategy is an agency-wide commitment that lays out four goals to focus and inspire CBP’s efforts to advance global environmental sustainability, guide our investments in climate resilience and achieve our green trade vision.

Opportunities Identify ways industry can increase its role in addressing the climate crisis through trade Promote and sponsor research pertaining to green trade and sustainability Enhance supply chain visibility and traceability to illuminate environmental risk factors Incentivize and reward green innovation by industry (Prize Competitions…Pilots…)

AcceLERATE Green Innovation

Promote and invest in deployment of innovative, sustainable solutions by government and private industry

Prioritize enforcement of environmental laws and controls in conjunction with partner government agencies Bolster information sharing with stakeholders to promote coordinated enforcement Coordinate with foreign governments, NGOs and industry to enforce environmental provisions in trade agreements

Enforce against environmental bad actors to drive meaningful changes in trade practices Strengthen Environmental Enforcement

Reduce CBP’s carbon footprint by promoting resource efficiency through renewable and/or energy efficient sources and waste management Utilize flexible and non-traditional work arrangements to decrease workforce environmental impacts Improve the resilience and security of our workforce and infrastructure against the effects of climate change Improve Climate Resilience & Resource Efficiency

Decrease GHG emissions from CBP operations and strengthen resilience and sustainability of trade infrastructure and assets

Incorporate environmental priorities into existing trade programs Align customs processes and standards with a green future Develop green trade incentive programs and other facilitation mechanisms; identify barriers to trade sustainability Collaborate w/ international partners to incentivize green trade, build global capacity, harmonize approaches

Provide facilitation benefits and other incentives to promote environmentally-beneficial trade practices and supply chains Incentivize green trade

Green Trade Goals

Green Innovation Goals & Areas of Interest Seeking Technology Solutions That Enable Better detection of environmental crimes in supply chains Measurement and reduction of greenhouse gas emissions associated with imported goods, global supply chains and CBP’s own operations Measurement and reduction of material waste associated with imported goods, global supply chains and CBP’s own operations Strengthen resilience of CBP operations and employees to the effects of climate change/extreme weather Identification of environmental hazards (chemicals, plastics) in imports and exports Global circular economy and resilient/ sustainable supply chains

Questions for Industry:

What tools are available to better detect environmental crime and hazards?

How can CBP use technology to map and track the full lifecycle of imported goods, ensure circularity and support Extended Producer Responsibility?

There has been an enormous uptick in energy use associated with AI and data centers. How can we join together with industry to create zero-emission data centers or carbon-negative AI?

As we see increasing occurrences of extreme weather connected with climate change, how can tech help us predict and prepare for potential disruptions to shipping routes, commodity flows and port activity?

Potential Innovation Solutions Port of Entry Modernization Fleet Electrification Clean Energy Pilots

Technology Enabled Tracing & Detection ACE Modernization & Increased Digitization

Circular Economy/ Circular Customs

OPERATIONS DIRECTORATE

OPS Organizational Structure The Operations Directorate is comprised of four divisions and eleven branches that carry out OPS missions and functions. The divisions include the International Engagement and Incident Management Division (IEIM), Planning, Analysis & Evaluation (PAE), Trade Intelligence Division (TID), and Trade Investigations Division (TINV).

Directorate Division

KEY

Operations Directorate International Engagement & Incident Management Division (IEIM) Planning, Analysis & Evaluation Division (PAE)

Trade Intelligence Division (TID)

Trade Investigations Division (TINV)

OPS Areas of Support

The Operations Directorate provides integrated operational and trade-related intelligence support to OT and external stakeholders, including the Office of Trade Directorates, Office of International Affairs, Office of Intelligence, Office of Field Operations, and Homeland Security Investigations.

Office of Trade, CBP Office of Intelligence, CBP Homeland Security Investigations, ICE Office of International Affairs, CBP Office of Field Operations, CBP

OPS Objectives Coordinating OT's participation in national and international level trade enforcement operations within the trade interdiction, investigation, and intelligence communities.

Overseeing OT's contingency planning, force readiness, and emergency response functions.

Monitoring OT operational performance, leading strategic planning, and conducting program analysis and evaluation.

Fusing trade intelligence and operational information into timely and useful products and services that drive CBP's trade facilitation and enforcement efforts.

Coordinating international engagements with stakeholders, promoting the harmonization of customs standards through capacity building, and providing critical support and expertise to CBP’s emergency management response and recovery efforts.

Coordinating Trade Enforcement Operations Oversee Emergency Response Functions Monitor OT’s Operational Performance Develop Products to Inform Decision-Makers Promote Capacity Building and International Engagement

VISION

OPS is one of OT’s essential offices that drives the CBP trade mission by coordinating national and international level trade initiatives and intelligence-driven enforcement approaches.

The Operations Directorate provides the Office of Trade (OT) with key trade intelligence, emergency response, and analytical support by coordinating various initiatives across OT. This work ensures that necessary trade facilitation and enforcement efforts can be taken by decision-makers and allows for effective international trade collaboration efforts.

OPS Industry Needs Comprehensive information on the movement of goods within and between foreign countries.

The ability to identify shortages of goods coming into a port based on commodity search terms rather than HTS codes.

An application that can create a map visualizing provided trade flows.

MISSION READINESS DIRECTORATE

Mission Readiness Directorate

Mission Readiness Directorate

Our mission: To provide outstanding service to and advocate for the Office of Trade (OT) to meet the trade mission.

Resources Our Functions

Policy Partnership Workforce Care & Development Workforce Planning & Program Management

Facilities and Asset Management Division Divisions

Financial Management Division Human Capital Management Division Strategic Programs Division

The Mission Readiness Directorate (MRD) is responsible for managing the areas of finance, human capital, and facilities and assets for the Office of Trade (OT). MRD collaborates across CBP / OT partners to address the demands of the trade mission and plan for longer-term needs. MRD consists of four divisions: Financial Management Division (FMD), Human Capital Division (HCD), Facilities and Asset Management Division (FAMD), and the Strategic Programs Division (SPD). MRD strives to ensure the OT workforce has the appropriate resources and capabilities required to succeed and meet programmatic resource deficiencies in anticipation of future needs.

Who We Are

What We Do & How YOU can HELP us!

Our key functions includes the management of Resources, HR Policy, Workforce Care & Development, Strategic Workforce Planning, and Program Management.

Our needs:

Strategic Workforce Planning Data Analytics & Reporting Workload Staffing Model

Business Transformation Talent Acquisition

Manage funding, human capital, assets, and facilities to better support the trade mission

HR Policy Leverage policy to enable OT to support its mission

Workforce Care & Development Engage and support OT employees to ensure the OT workforce feel engaged and empowered

Workforce Planning & Program Management Provide strategic workforce planning and program management services to achieve OT's mission Resources (Funding, Assets, Manpower Management)

REGULATIONS AND

RULINGS DIRECTORATE

Regulations and Rulings Directorate

MISSION

To ensure conformance and compliance with the laws administered by CBP.

METHOD

Issues binding administrative rulings with respect to the application of the Customs and Trade Laws, exercise authority to mitigate penalties and claims, draft and publish CBP regulations, and administer CBP’s IP enforcement program.

Regulations & Rulings History of Regulations & Rulings

1960: formal split from Office of Chief Counsel, attorneys transferred to a HQ Office in Washington, DC, named “Office of Regulations and Rulings”

Today: RR includes over 260 employees consisting of attorney-advisors, National Import Specialists (NISs), paralegals, and economists who are experts in discrete areas of customs law

1939: recognized need for objective trade determinations and expertise in application of the customs law; attorneys taken from the field office and placed in the Commissioner’s Office

Statutory duty to renders objective determinations on:

classification valuation marking country of origin entry/import procedures intellectual property rights enforcement penalty administration restricted merchandise admissibility navigation laws and Freedom of Information Act (FOIA) appeals

Duties and Responsibilities

Issues administrative decisions and policy guidance concerning violations of border security laws and regulations, including advance cargo and passenger information, intellectual property infringement, restricted merchandise admissibility and export controls Promulgates regulations found in Title 19 (Customs Duties) and Title 8 (Aliens and Nationality) of the Code of Federal Regulations (CFR) Technical legal experts for the USG on border enforcement of trade laws Educates the public on trade compliance and working with CBP

Duties and Responsibilities, cont.

Represents the United States at World Customs Organization (WCO) Harmonized System Committee and Technical Committee on customs valuation Assists U.S. Trade Representative (USTR) with free trade or trade promotion agreements on customs subjects Chair of OECD Countering Illicit Trade Working Party FTZ Experts Group WIPO Advisory Committee on Enforcement Interpol Investigators College faculty Provides international capacity building to our trading partners IP border enforcement regime accepted as the GOLD STANDARD worldwide International Footprint

CBP/IPE trained 66 customs agencies in 2023

Border Security & Trade Compliance Division Enforcement mission Provides admissibility determinations, evaluates enforcement actions and/or adjudicates challenges to seizure and forfeiture of:

Trademark, copyright and patent infringing merchandise Cultural property Forced labor restricted merchandise PGA regulated products (ex: FDA, USDA, EPA, NHTSA, CPSC, etc.)

Rough diamonds Export controlled merchandise

CBP’s unique ex officio enforcement authority Search/examination Detention Seizure Forfeiture Destruction Assess penalties and liquidated damages Mitigate assessed penalties

Increasing volume of trade requires increasing speed and efficiency in determining admissibility of merchandise Too many admissibility determinations to disseminate ~ 1,000 Like cases not always treated alike No central repository of adjudicated products, with images Identifying the IP right at issue Central database housing all recorded trademark and copyrights (IPRiS) Searchable by field text but to by image IP rights are misidentified or missed all together Donation of Authentication Technology (Apps) Extremely helpful to the field but cannot be downloaded on government device Donation of App on iPhone creates multiple iPhones to keep track of Need for One-App-To-Rule-Them-All™

Highlight on 3 Current Challenges https://iprr.cbp.gov/s/

REGISTER with USPTO or U.S. Copyright Office

RECORD with CBP

Example 1: Imported leather pouch Question 1: Is there an intellectual property rights issue?

Example 2: Unknown logo encountered

Section 101 of the Consumer Product Safety Improvement Act, codified at 15 U.S.C. § 1278a, declares children’s products that contain more than 100 ppm lead in an accessible component to be a banned hazardous substance as that term is used in the Federal Hazardous Substances Act (FHSA).

Example 3: Possible Copyright Infringement

CPSC’s Office of Import Surveillance (EXIS) works closely with U.S. Customs and Border Protection (CBP) to identify and examine imported shipments of consumer products.

Donations Acceptance Program

Through the Donations Acceptance Program (DAP) CBP is authorized to accept trade tools from right holders, such as IP authentication technology

The DAP is authorized by 6 U.S.C. § 301a, and consistent with 19 CFR 133.61 as mandated by Section 308(d) of the Trade Facilitation and Trade Enforcement Act of 2015

Accepted donations may be used in support of a wide array of CBP operations and may include inspection technologies, IPR enforcement tools, and more.

Donated apps cannot be downloaded on government phones; thus, right holders are donating iPhones with the app downloaded, as well as a service plan

Donations Acceptance Program - Intellectual Property Rights Enforcement Tool Donations | U.S. Customs and Border Protection (cbp.gov)

THANK YOU

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