1. Update on Border Issues Border Legislative Conference Border Trade Alliance Phoenix, Arizona December 8, 2006

2. BTA Tri-national organization with 20 Years of existence Advocate for the facilitation of movement of goods and people Mission is to improve the quality of life of border communities Committee-driven organization made up of volunteers

3. Pre – 9/11 Benchmarks to cross the border Benchmarks to cross the border 20 Minutes in any 24 hour time frame 20 Minutes in any 24 hour time frame Documents required of Mexican travelers ONLY Documents required of Mexican travelers ONLY Laser Visa as of 1997 (valid for 10 years) Laser Visa as of 1997 (valid for 10 years) US and Canadian Citizens can make oral declaration US and Canadian Citizens can make oral declaration The border considered an inconvenience The border considered an inconvenience No national headlines No national headlines

4. Post – 9/11 Average wait times in excess of 45 minutes in a 24-hour period; Average wait times in excess of 45 minutes in a 24-hour period; Eventual exit controls at borders; Eventual exit controls at borders; Ongoing Battle of Security VS. Facilitation; Ongoing Battle of Security VS. Facilitation; “Not Under My Watch” mentality; “Not Under My Watch” mentality; Drastic increase in inspection standards, procedures and personnel; Drastic increase in inspection standards, procedures and personnel; More Fences; More Fences; National Guard (unarmed); National Guard (unarmed); National headlines and key theme in national politics; and National headlines and key theme in national politics; and More More

5. Now at the Border DHS; DHS; CBP; CBP; ICE; ICE; US-VISIT; US-VISIT; WHTI; WHTI; ACE; ACE; SENTRI; SENTRI; C-TPAT; C-TPAT; FAST FAST TWIC; TWIC; SPP; SPP; PPP; PPP; SBInet; and SBInet; and More More

6. Areas that need our attention Infrastructure at our Ports of Entry Infrastructure at our Ports of Entry Inspection procedures Inspection procedures Staffing and training Staffing and training Resource allocation & management procedures Resource allocation & management procedures Bilateral coordination Bilateral coordination Shared border environment Shared border environment Perception of the border Perception of the border “We Are All In This Together” “We Are All In This Together”

7. Infrastructure ModeBillions Road$491 Rail$116 Water$58 Pipeline$52 Air$33 Total$750 Source: 2005 US Department of Transportation Trade continues to grow at a faster pace than infrastructure. Trade continues to grow at a faster pace than infrastructure.

8. Mexican Inspection US Inspection N MX US Southbound ADOT Northbound Cattle Pens FAST Lanes

9. Infrastructure GSA and BTA formed a partnership to provide input on future of infrastructure at our ports of entry: GSA and BTA formed a partnership to provide input on future of infrastructure at our ports of entry: Better Better Cheaper Cheaper Faster Faster Presidential Permit Process Presidential Permit Process Public-Private Partnerships Public-Private Partnerships

10. US-VISIT US Visitor and Immigrant Status Indicator Technology Delays in uploading data Delays in uploading data No signage or video presentations No signage or video presentations Technology not integrated Technology not integrated No adoption of technology in inspection process No adoption of technology in inspection process Single vendor testing Single vendor testing Testing affects ONLY 3% to 4% of traveling public Testing affects ONLY 3% to 4% of traveling public

11. WHTI Western Hemisphere Travel Initiative Western Hemisphere Travel Initiative Recommended by the 9/11 Commission Recommended by the 9/11 Commission All US Citizens entering into the United States need to present a passport or a DHS recognized ID. All US Citizens entering into the United States need to present a passport or a DHS recognized ID. Will be required at exit as well Only 23% of US population have passports Only 23% of US population have passports (71 million active passports) According to the Department of State they expect to process 15 million passports next year According to the Department of State they expect to process 15 million passports next year New PASS Card for Land Borders

12. WHTI Amendment to delay the implementation of WHTI until June of 2009. Amendment to delay the implementation of WHTI until June of 2009. Remaining Issues: Remaining Issues: Coordination between DOS and DHS; DOS Ability to issue Passports Outreach to traveling public Recognition of alternative documents “Day Traveler” Technology compatibility Technology compatibility The WHTI Federal Register Notice for Land POE’s will be published soon. The WHTI Federal Register Notice for Land POE’s will be published soon.

13. C-TPAT Rail Project Partnership with C-TPAT companies, Rail companies, CBP, FRA and state organizations Partnership with C-TPAT companies, Rail companies, CBP, FRA and state organizations Goal to expedite dedicated rail for C-TPAT companies Goal to expedite dedicated rail for C-TPAT companies Maximize existing infrastructure Focus technology and dedicated programs to low risk cargo Focus technology and dedicated programs to low risk cargo

14. ACE ( Automated Customs Environment ) The program enables commercial motor carriers and shippers to submit their manifests electronically prior to their arrival at U.S. port of entry. The program enables commercial motor carriers and shippers to submit their manifests electronically prior to their arrival at U.S. port of entry. The program is designed to reduce processing times and for online tracking of shipments. The program is designed to reduce processing times and for online tracking of shipments. The E-Manifest Federal Register Notice will be published soon. The E-Manifest Federal Register Notice will be published soon.