Centers of Excellence and Expertise International Trade Club of Chicago October 23, 2015 Linda Golf, Assistant Port Director, Trade Area Port of Chicago

Why Centers? Objective: Past processing: Center processing: Focus on industry-specific issues Facilitation Reduce transaction costs Increase compliance Increase uniformity Target “bad actors” Past processing: Company imports into 60 ports of entry 60 ports conduct summary/ post-summary reviews Center processing: Company imports into 60 ports of entry ONE Center conducts all summary/post-summary reviews

What are Centers of Excellence and Expertise? Industry-focused and account-based points of virtual processing for post-release trade activities Aligned by 10 key industry sectors in strategic location Consolidate existing expertise and build industry- specific education to authoritatively facilitate trade Provide national overview of participating accounts to identify areas for further facilitation or corrective action Serve as a resource to the broader trade community and to CBP’s U.S. government partners Provide guidance to the trade to ensure trade compliance thereby streamlining the importation process Want prompted this transformation? Talk about the IORs as a key stakeholder in CBP’s effort to effectively and efficiently carry out its mission.

Industry Focused Consolidate the existing international trade workforce to enhance our expertise in building industry-specific knowledge to authoritatively streamline CBP’s mission of facilitating legitimate international trade Industries are aligned in 10 key sectors of the economy in strategic locations across the country. CBP enforcement actions gear towards addressing the industry risks Helps us increase the industry-based knowledge; with the Center as a “one stop shop” for industry questions and/or concerns

Account-Based Concept For entities designated as Trusted Partners (ISA and C-TPAT importers). Managed Accounts with Industry-experienced CBP’s National Account Managers Helps CBP expedite legitimate trade for our partners Collaborates with the partners to address industry risks such as Intellectual property rights, health/safety issues, inquiries, cargo holds, etc.

Center Goals 1) Facilitate legitimate trade through effective risk segmentation Utilize account-based methods to process trade Expand partnerships - move more importers to trusted trader status Develop and implement comprehensive strategies to manage risk 2) Increase industry-based knowledge within CBP Advance bi-directional education to raise industry knowledge Engage industry groups and key stakeholders 3) Enhance enforcement and address industry risks Leverage industry to provide CBP with targeting, enforcement, and/or intelligence information Coordinate enforcement efforts by industry to address unique risks

What are the benefits?

The 10 Centers of Excellence and Expertise

Centers at Full Operation Delegation Order, Number 14-004, effective on September 11, 2014, delegates all authorities provided for in Title 19, Code of Federal Regulations that are vested in Port Directors, to the Directors, Centers of Excellence & Expertise (Center Directors). The Delegation Order does not remove any authority from the Port Directors but serves to share trade authority until full regulatory changes are completed. On January 28, 2015, the Center Directors for the Electronics; Petroleum, Natural Gas & Minerals; and the Pharmaceuticals, Health & Chemicals Centers will assume trade authority for post-release trade processes of entry summaries for the respective industry tariff lines for certain Ports of Entry.

Permanent Center Directors Mr. Eric Batt, Apparel, Footwear and Textiles Ms. Elva Muneton, Electronics Ms. Joanne Colonnello, Pharmaceuticals, Health and Chemicals Mr. David McGurk, Petroleum, Natural Gas and Minerals

Center Team Designation Depends on whether the Center is at Full Expansion or Operating Under the Pilot Test. Depends on whether Importers are Managed by the Partnership Branch vs the workload handled by the Validation and Compliance Branch. Team numbers for the Validation and Compliance Branch for Entry Summaries filed in the Area Port of Chicago: 047 (Electronics); 056 (Petroleum) and 061 Pharmaceutical.

Team Numbers Designated for the Partnership Branch of the 10 Centers

Submitting Workload to the Centers Participating Importer Accounts that applied for and have been accepted into a Center and are managed by the Partnership Branch of a Center follow the Centers of Excellence and Expertise Trade Process Document dated March 2014. Importers handled by the Validation and Compliance Branch of one of the three Centers at full expansion can submit work via the Document Imaging System; designated CEE email box; via ACE or in paper if ACS filed entry summary.

For More Information on the Centers Information on the Centers of Excellence and Expertise can be found at: http://www.cbp.gov/trade/centers-excellence-and-expertise-information

Information Available on cbp.gov

Questions?