Trade Enforcement and Facilitation - Priority Trade Initiatives (2018-06-26)

U.S.
CUSTOMS AND BORDER PROTECTION
Office Of Trade
Trade Policy and Programs
Priority Trade Issues
June 27, 2018

U.S. CUSTOMS AND BORDER PROTECTION
Priority Trade Issue – (PTI)

• Priority Trade Issues (7 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...
• PTI strategies also focus on protecting American businesses from unfair trade
practices, theft of intellectual property and enforcing trade laws, related to
admissibility, regulate trade practices to collect the appropriate revenue and
shield the American public from harmful pests. Provide a level playing field!
For Official Use Only

Priority Trade Issues (7)

• Agriculture
• Import Safety
• Intellectual Property Rights
• Antidumping and Countervailing Duties (AD/CVD)
• Free Trade Agreements and Preference Programs
• Textiles and Wearing Apparel
• Revenue

Agriculture
Priority Trade Issue (PTI)
Office of Trade, Trade Policy & Programs,
Interagency Collaboration Division

Why is Agriculture a Priority Trade Issue?

• According to U. S Department of Agriculture (USDA), agriculture is the largest industry
and employment sector in the U.S.; accounting for 1 in 4 jobs.

Agriculture Defined
• 7 U.S. Code § 451 - “Agricultural products”

• Agriculture: means agricultural, horticultural, dairy products, livestock and the
products thereof, the products of poultry and bee raising, the edible products of
forestry, and any and all products raised or produced on farms and processed
or manufactured products thereof, transported or intended to be transported in
interstate and/or foreign commerce.

• Did you know: Over 44 percent of U.S. agricultural imports are horticultural products: fruits, vegetables, tree nuts, wine,
essential oils, nursery stock, cut flowers, and hops. Sugar and tropical products such as coffee, cocoa, and rubber
comprised just over 20 percent of agricultural imports in 2015. Imports of vegetable oils, processed grain products, red
meat, and dairy products have grown significantly in recent years
• In 2018 U.S agriculture imports are expected to reach $121.5 billion.

Agriculture Enforcement
• Agriculture PTI mandated by Trade Facilitation and Enforcement Act (TFTEA)
2015; Focus on Trade Enforcement, Trade Security and Facilitation
• CTAC launched in 2010, as Multi-agency, single-issue blended center and
contains 12 U.S Government Agencies with Customs and Border Protection
(CBP) serving as the host.
• This is a perfect fit for the Quota and Agriculture Branch; CTAC strategy aims to
broaden stakeholder cooperation, and PGA information exchange!

What is the O.T Agriculture Mission?

Office of Trade Agriculture OFO -Agriculture Programs and Trade
Liaison
• The O.T agriculture office sets policy for
non pest related issues. • APTL oversees CBP’s agriculture
safeguarding and strategy to detect, deter,
• Works directly with industry stakeholders. and prevent the induction of plant pest,
• Collaborates with Partner Government invasive species, foreign animal disease,
Agencies (PGA) for licensing issues. and agriculture bio-terrorism threats.
• Quota and Agriculture updates the quota • Liaison with PPQ for issuance of policy,
HTS and quantities when required. planning and guidance related to
CBP’s agricultural mission.
• Administers fiscal year and calendar year
quota Agriculture openings. • Agriculture Specialist inspect passengers
and baggage while facilitating the flow of
• Coordinates non APTL pest related O.T
passengers entering the U.S.
tasking's.

Quota and Agriculture Product Limits

• An import quota is a quantity control on imported merchandise for certain period
of time.
• Quotas are established by legislation, directives and proclamations issued under
the authority contained in specific legislation.
• CBP has no authority to change or modify any quota limit.
• There are three types of quota’s absolute, tariff rate (TRQ) and tariff preference
level (TPL) [19 CFR 132].

Quota and Agriculture: (continued)
Quota and Agriculture Overview:

• Quota Agriculture products: 296
• Non Quota Agriculture products: 143
Note: currently agriculture products subject to quota are Tariff

Rate Quota (TRQ), provides for quantitative limit at lower duty
rate, however, once it limit is reached the duty increases.

Significant Agriculture Quota Products

1. Beef
2. Dairy Products
3. Mandarin Oranges
4. Peanuts
5. Sugar (Raw, Refined and Specialty)
6. Tobacco
7. Tuna (Albacore and Skipjack)

What Can I do to Help?

• The Centers/Ports are the main contact for commercial shipment issues, CBP
staff may assist with the following:
• Assist when contacted by the trade.
• Research the issue and refer as appropriate.
• Ensure the cargo is released and liaison with the CBPO as
necessary.
• Ensure the all quota merchandise is entered correctly.
• Review quota entry summaries are appropriately classified,
accepted in ACE quota module..
• Important: When quota merchandise is prorated, all remaining
merchandise is cleared using the high rate, warehoused, exported
or destroyed [ 19 CFR 132].

Quota Reference Material

• Quota Regulations- 19 CFR 132
• Quota Bulletins: (QB posted for each quota opening).
• Memorandum: Guidance ACE Processing Procedures.
• Commodity Status Reports ( posted weekly to cbp.gov quota page).
• Check cbp.gov for updates to agriculture import policy.
• Note: Additional policy and guidance coming out soon!

Any Questions?
HQ QUOTA HQQUOTA@cbp.dhs.gov

We appreciate your time and participation!

IMPORT SAFETY
PRIORITY TRADE ISSUE (PTI)
Office of Trade, Trade Policy & Programs,
Interagency Collaboration Division

CBP Import Safety PTI - Table of Contents
• Import Safety PTI Scope

• Strategic Challenges and Risks
• Strategic Approach
• Commercial Targeting & Analysis Center (CTAC)
• Trade Facilitation and Trade Enforcement Act of 2015

CBP Import Safety PTI - Scope
• The term “Import Safety” refers to recognized United States

Government (USG) standards to ensure that imported products
are safe for and do not injure people and animals.
• The term “recognized standards” refers to those standards for

which compliance is required by United States law or regulation
enforced by a responsible federal agency with jurisdiction.

CBP Import Safety PTI - Scope
Import Safety Priorities – High-Risk Areas:

• Consumer Product Safety
• Medical and Personal Care Products Safety, incl. Pharma
• Food Safety & Defense
• Hazardous Materials Safety
• Transportation Safety – Vehicles / Parts, Components, Access.
• Environmental Protection

CBP Import Safety PTI - Strategic Challenges and Risks
• Inaccurate or Incomplete Information on Imports

• E-Commerce Sales and the Continued Influx of Small Packages
• Inter-Agency Collaboration and Interdependencies
• Lack of Robust Interagency Systems Interoperability
• Need to Incorporate New Technologies and Partner Agencies’ Laboratories
Capabilities for Swift Identification and Hazards Testing

CBP Import Safety PTI - Strategic Approach
Engagement – Broaden and Deepen Stakeholder Partnerships

• Private (Non-Governmental) Sector
• Public (Governmental) Sector
• International Collaboration
Education – Sharpening Trade Expertise and Building Awareness
• Strengthen CBP Personnel Import Safety Expertise
• Enhance Public Awareness of the Dangers of Unsafe Goods
Enforcement – Advancing Intra- and Inter-Agency PTI Collaboration
• Risk Management / Operations
• Reporting / Information Exchange

CBP Import Safety PTI - Commercial Targeting & Analysis Center (CTAC)
• Executive Order 13439, July 18, 2007, Establishing an Interagency Working Group
on Import Safety
• In response, the Commercial Targeting and Analysis Center (CTAC) was launched in
2010, as an interagency trade enforcement coordination center
• Since 2010, CTAC has grown to now encompass 12 U.S. Government Agencies, with
CBP serving as the host agency, and a broader range of partner government agency
programs and priorities, including:
 Import Safety
 Illicit Wildlife Trafficking, Environment and Natural Resources Defense
 Cultural Property, Arts And Antiquities Trafficking

CBP Import Safety PTI - Commercial Targeting & Analysis Center
As One-U.S. Government at the Border, CTAC facilitates information sharing and

leverages the collective resources of participating government agencies to detect,
interdict, investigate and mitigate violations of U.S. trade laws.
APHIS CPSC EPA FDA FSIS FWS NMFS NHTS PHMS TTB
A A

CBP Import Safety PTI - Trade Facilitation and Trade Enforcement

Act of 2015
Title I – TRADE FACILITATION AND TRADE ENFORCEMENT

• 19 U.S. Code § 4322(a)(3) – Import Safety Priority Trade Issue
Title II - IMPORT HEALTH AND SAFETY

• 19 U.S. Code § 4331 – Interagency Import Safety Working Group
• 19 U.S. Code § 4332 – Joint Import Safety Rapid Response Plan
• 19 U.S. Code § 4333 – Training

Tanks!
Questions?
THANK YOU!
https://www.cbp.gov/trade/priority-issues/import-safety/ctac

Intellectual Property Rights

(Targeting and Interdiction at the Border)
Trade Priority Issue

IPR Violations CBP Enforces

 The merchandise bears a mark that infringes a recorded trademark
 The merchandise is a piratical copy of a work protected by a recorded
copyright
 The merchandise is prohibited importation pursuant to the Digital
Millennium Copyright Act (DMCA)
 The merchandise is subject to exclusion pursuant to an exclusion
order
For Official UsFor Official Use Only

e Only
IPR Enforcement Statistics: 2000 - 2017

IPR Risks: Consumer Safety, National

Security, and Economic Impact

IPR Enforcement Process: Examination

Concealment Techniques:
 Cover Loads
 Commingling
 Covering Infringing IPR Mark
Observations:
 Products not packaged

properly or are shipped
inconsistent with industry /
brand standards.

IPR Enforcement Process: Examination

IPR Strategic Approach

•CBP Instructor Led Training
•Right Holder / Importer Training
Educate •Product ID guides / Product, TMK, specific training

•IPR Public Awareness Campaign
•International Regional IPR training with ICE-HSI
• Partnership Programs – ISA, CTPAT

• E-Allegations
Engage • Advisory Committees

• International partnerships and joint operations
• IPR Donations Acceptance Program
• IPR operational support – National IPR TSOs

• Coordination with IPR Center partners and other agencies
Enforce • Support/develop operational efficiencies

• International Engagement and operations

E-Commerce Strategy
• CBP announced the released the agency E-Commerce Strategy on March

6, 2018
• E-Commerce = high-volume, low-value shipments purchased via
electronic means.
• Growth in volume has increased the opportunity for illicit trade

Number of Seizures by product
Note: Seizures involving multiple product categories are included in the “All Others” category.

MSRP by Economy
FY 2017 Trading Percent FY 2016 Trading Percent
Partner MSRP of Total Partner MSRP of Total
China $ 554,631,765 46% China $ 616,881,043 45%
Hong Kong $ 386,242,271 32% Hong Kong $ 599,785,306 43%
India $ 8,341,949 1% India $ 14,668,153 1%
Singapore $ 4,997,430 0.4% Singapore $ 7,706,059 1%
Turkey $ 4,983,051 0.4% Cambodia $ 7,014,825 1%
Taiwan $ 4,902,390 0.4% Pakistan $ 4,776,159 0.3%
Vietnam $ 4,391,835 0.4% Bangladesh $ 4,591,756 0.3%
Korea $ 4,235,107 0.4% Colombia $ 4,220,544 0.3%
Canada $ 3,036,994 0.3% Korea $ 3,585,190 0.3%
Thailand $ 1,856,892 0.2% Mexico $ 3,538,991 0.3%
All Others $ 228,762,535 19% All Others $ 116,134,976 8%
Total FY 2017 MSRP $ 1,206,382,219 Total FY 2016 MSRP $ 1,382,903,001
Number of Seizures 34,143 Number of Seizures 31,560
Note: The aggregate seizure data reflect the reported country of origin, not necessarily where the seized goods were produced.
Because the individual percentage figures are rounded, in some cases, the sum of the rounded percentages for a given fiscal year is
slightly higher or lower than 100%.

Contact Information
IPRHELPDESK@cbp.dhs.gov

Antidumping/Countervailing
Duty (AD/CVD)
Priority Trade Issue (PTI)

What is Anti-dumping/Countervailing Duties (AD/CVD)?

 AD/CVD duties are trade remedies which level the playing field for U.S.
manufacturers against unfair foreign competition
 Dumping occurs when a foreign producer sells a product in the U.S. at a

price that is below fair market value
 Subsidization occurs when a government provides financial assistance to

benefit the production, manufacture, or exportation of a good

Why AD/CVD Is Important?
 U.S. jobs may be lost
 Domestic industries may be harmed
 Our nation’s economy is threatened

AD/CVD Administering Authority

 The International Trade Commission (ITC) and U.S. Department of Commerce
(DOC) are responsible for conducting AD/CVD investigations
 U.S. industries may petition the ITC and DOC for relief from unfairly priced (dumped)
and subsidized imports
 DOC is the administering authority for AD/CVD and instructs CBP to collect AD/CVD
estimated duties on U.S. imports
 DOC, upon request, conducts reviews to determine final AD/CVD liability and
instructs CBP to collect final AD/CVD duties due

CBP’s Role with AD/CVD
 AD/CVD Enforcement is a CBP Priority Trade Issue
 CBP has a crucial ministerial role in AD/CVD:

 Administer AD/CVD Entries
 Collect AD/CVD Duties
 Enforce AD/CVD Orders
 CBP take an agency wide approach

AD/CVD Statistics
 In 2018, CBP enforces 431 AD/CVD Orders on more than 169 commodities originated
from 64 countries
 AD/CVD Cash Deposit rates ranges from 0% through 620.08%
 Total of $13.3 billion of imported goods were subject to AD/CVD during FY17
 CBP collected over $1.5 billion in AD/CVD deposits and levied 43 monetary penalties
totaling over $253.6 million on importers for fraud, gross negligence, and negligence for
AD/CVD violations in FY17
 CBP audits identified $27.1 million in AD/CVD discrepancies with $2.2 million collected
in FY17


AD/CVD Enforcement Challenges
AD/CVD collection
Increasing number of AD/CVD Orders, since the beginning of FY 2017 there were
72 new orders issued by DOC
Circumvention schemes
Illegal transshipment
Valuation
Misclassification
Written scope of the order vs. HTS

AD/CVD Enforcement Remedies
 CBP employs multiple methods at the port, Center of Excellence and Expertise,
and national level to target AD/CVD evasion
 CBP partners with domestic industries obtaining commodity specific training
 CBP collaborates with other U.S. government agencies, such as DOC and
Immigration Customs Enforcement (HSI)
 CBP engages with international Customs authorities in accordance with

international agreements, to support AD/CVD enforcement

New Initiatives
 Enforce and Protect Act of 2015 (EAPA)
 Establishes formal procedures for submitting and investigating AD/CVD

allegations of evasion against U.S. importers
 CBP has responsibility for tracking and reporting allegations of evasion from
initial receipt, vetting and enforcement actions, to final disposition of an
investigation

Other Trade Remedies Includes:

Section 201 – Effective February 7, 2018, CBP enforces tariff rate quotas and collects
increased duties on imports of solar cells and panels, and washing machines and
parts.
 Section 232 - Effective March 23, 2018, increased duties on aluminum 10% (Chapter
76) and steel articles 25% Chapters 72 & 73, applicable.

Contact Information
ADCVDISSUES-HQ@CBP.DHS.GOV

Free Trade Agreements –

Priority Trade Issue

Principal Objectives of the Free Trade Agreements Priority Trade Issue
• To ensure that traders are in compliance with laws and regulations governing the 14
U.S. Free Trade Agreements (FTAs) and 7 pieces of Priority Trade Legislation (PTL)
• To implement and enforce FTA and PTL complex rules of origin (i.e. where goods
are made or “originate” to benefit from FTA/PTL) through robust verifications or
manufacturing/supply chain document audits
• To address high risk areas for false origin claims and loss of revenue associated
with exploitation of these programs
• To build and utilize effective partnership with traders and other USG agencies, while
strengthening FTA and PTL expertise amongst CBP field personnel

Free Trade Agreements, Preferential Trade Legislation, and U.S. Trade

Policy
Free Trade Agreements (FTAs) and Preferential Trade Legislation (PTLs) are two
different tools to affect trade-related policy, by:
• Increasing market access for U.S. Exporter, U.S. Importers, and Trading Partners
• Eliminating or reducing tariff and barriers between U.S. and Trading Partners
• Establishing ambitious and transparent international standards (customs/trade
facilitation, intellectual property rights, sanitary and phytosanitary measures)
• Promoting U.S. policy goals (open economies, rule of law, environmental
protections, press freedoms, human rights, labor rights, property rights, etc.)
• Deepening economic and political relationship.

CBP Approach to FTA PTI
• Negotiating: Support Office of the U.S. Trade Representative (USTR) in negotiating

and implementing FTAs that enhance CBP’s mission, promote enforcement, and
facilitate compliance. (NAFTA, KORUS, WTO Trade Facilitation Agreement, TPP)
• Outreach/Training/Coordinating: Coordinate and capacity build with foreign

governments, interact with and educate the trade, engage relevant executive agencies;
and inform and educate CBP Import Specialists to ensure a high level of FTA and PTL
expertise across USG and in CBP’s field. (Training Class, Webinars, Job Aids)

CBP Approach to FTA PTI (continued)
• Targeting/Analysis: Study enforcement data and analyze trends, shifts, patterns, or

anomalies that need monitoring, explaining or resolution; assess non-compliance or
fraud risk; and advance enforcement actions based upon this analysis and assessment
• Enforcing: Target areas that present greatest risk to address instances of non-
compliance through penalty actions; conduct risk-management driven special
enforcement operations to enhance revenue collection; and audit import transactions to
verify trade community compliance. (Annual FTA Enforcement Plan, Roughly 2300 FTA
Verifications Per Year, Special Operations)

FY 2017 Non-Textile, FTA Data
SPI TRADE PROGRAM FY17 %

Total $2,171,683,547,508 100.0%
NONE NON-FTA or PTL $1,560,033,308,272 71.8%
CA NAFTA CANADA $218,886,178,725 10.1%
MX NAFTA MEXICO $247,767,034,376 11.4%
KR KOREA FTA $48,021,864,736 2.2%
A GSP - SYSTEM OF PREFERENCES $20,701,575,575 1.0%
K/K# PHARMACEUTICAL PRODUCTS $14,657,010,816 0.7%
P/P+ CAFTA $11,001,432,949 0.5%
CL CHILE FTA $9,492,467,620 0.4%
D AGOA $9,390,056,099 0.4%
CO COLOMBIA FTA $7,564,443,809 0.3%
AU AUSTRALIA FTA $6,056,027,257 0.2%
PE PERU TPA $5,388,249,696 0.2%
C/C# CIVIL AIRCRAFT AGREEMENT $4,029,220,647 0.2%
SG SINGAPORE FTA $2,914,138,043 0.1%

FY 2017 Non-Textile, FTA Data (Cont.)
SPI TRADE PROGRAM FY17 %

IL ISRAEL FTA $2,441,804,790 0.1%
BH BAHRAIN FTA $692,744,843 0.03%
OM OMAN FTA $662,686,377 0.03%
E CBERA $582,525,737 0.02%
Y U.S. INSULAR POSSESSION $441,391,741 0.02%
N WEST BANK, GAZA STRIP & QIZs $312,690,375 0.01%
PA PANAMA FTA $193,527,208 0.009%
MA MOROCCO FTA $182,937,044 0.008%
JO JORDAN FTA $131,966,250 0.006%
R CBTPA $87,319,904 0.004%

L/L# INTERMEDIATE CHEMICALS FOR DYES $49,376,274 0.002%
Z FREELY ASSOCIATED STATES $297,220 0.0%
W PRODUCTS OF PUERTO RICO $80,221 0.0%

Contact for CBP Trade Agreements Branch
FTA@cbp.dhs.gov

Textiles and Wearing Apparel


Why Textiles and Apparel Are Important

Facts about Why Textiles are Important
• U.S. Imports of Textile and Apparel Goods Total $121 Billion (FY2017)
• Account for Approximately 41% ($13.5B) of All Duties Collected ($32.9B)
• Key Industry for the U.S. Economy
 U.S. employment: 550,500 in 2017
• Highly Regulated and Legislated
• Key Industry for Free Trade Agreements
• Key Industry for Administration’s Trade Policy
• Key Industry for Congressional Legislation

5
Duty Vulnerability FY17
• $121 billion in textile imports

• Preference claimed approximately on 16%
• $20.5 billion in preferences
• Average duty rate is 16%
• $3.10 billion in duties being saved
• Estimate 30% non-compliance rate
• Results in nearly $1 billion duty vulnerability

CBP Textiles Priority Trade Issue
%CHG
Textiles FY2014 FY2015 FY2016 FY2017 FY16-17
Importers 66.7K 68.9K 74.6K 77.9K 4%
Lines 16.9M 18.8M 20.4M 20.9M 2%
Value $119.2B $125.2B $122.0B $120.9B -1%
Duty $13.2B $14.0B $13.7B $13.5B -1%
FY17 Industry Total All Imports % Overall

Importers 77.9K 386.7K 20%
Lines 20.9M 180.0M 12%
Value $120.9B $2.4T 5%
Duty $13.5B $32.9B 41%

Textile/Apparel Supplier Countries by Value
FY16 FY17
COUNTRY VALUE %VALUE

Country Value %TOT
CHINA $47,523,566,954 39.0%
CHINA $ 46,780,494,300 38.7%
VIETNAM $11,550,337,291 9.5%
VIETNAM $ 12,235,534,483 10.1%
INDIA $7,827,421,235 6.4%
INDIA $ 8,038,699,763 6.6%
MEXICO $6,122,838,677 5.0%
MEXICO $ 6,445,868,331 5.3%
BANGLADESH $5,631,687,718 4.6%
BANGLADESH$ 5,293,181,848 4.4%
INDONESIA $5,108,134,240 4.2%
INDONESIA $ 4,851,403,039 4.0%
PAKISTAN $2,900,083,474 2.4%
PAKISTAN $ 2,874,813,583 2.4%
HONDURAS $2,694,630,939 2.2% HONDURAS $ 2,633,397,673 2.2%
CAMBODIA $2,277,279,450 1.9% CAMBODIA $ 2,238,157,849 1.9%
CANADA $2,243,059,941 1.8% CANADA $ 2,162,986,296 1.8%
ITALY $2,080,834,930 1.7% ITALY $ 2,011,001,618 1.7%
EL SALVADOR $2,033,716,480 1.7% EL SALVADOR$ 1,967,108,594 1.6%
SRI LANKA $2,028,268,058 1.7% SRI-LANKA $ 1,960,912,162 1.6%
NICARAGUA $1,480,230,978 1.2% TURKEY $ 1,577,071,688 1.3%
63
GUATEMALA $1,460,949,474 1.2% NICARAGUA $ 1,502,921,659 1.2%

Textile Enforcement

Textile Enforcement
• HQ-TTAD has oversight of Textiles PTI

– NTAC’s
– Centers
– Textile Working Group (RAD, RR, Labs, OFO, HIS)
– Provides technical assistance to the USTR, DOC, Foreign government
counterparts, etc

Textile Enforcement Tools
• Collaboration with ICE Homeland Security Investigations (HSI)

• Collaboration with stakeholders
• Collaboration with foreign counterparts
• Textile production verification teams
• Special operations
• Training of CBP trade personnel
• Audits
• Laboratory and Scientific Services
• Field verifications

Textiles Enforcement Areas of Risk
• Origin Fraud
• Illegal transshipment
• Invalid Importer of Record: right to make entry issues; shell companies;
non-existent companies
• Duty circumvention through misdescription, underreporting and
undervaluation
• Smuggling
• Misuse of Trade Preference Programs

Textile & Apparel Trade Preference Activity FY17

Textiles & Apparel
Trade Program Value %TotVal Trade Program Apparel Value %TotVal
CAFTA $ 7,105,546,404 34.6% CAFTA 6,926,869,588 44.8%
NAFTA $ 6,907,194,150 33.7% NAFTA 3,574,384,419 23.1%
JOFTA $ 1,278,865,731 6.2% JOFTA 1,275,359,240 8.3%
AGOA $ 1,020,447,169 5.0% AGOA 1,019,509,964 6.6%
UKFTA $ 956,280,790 4.7% QIZ 689,184,732 4.5%
QIZ $ 763,057,386 3.7% PEFTA 597,482,647 3.9%
PEFTA $ 630,842,177 3.1% HAITI HOPE 548,944,556 3.6%
HAITI HOPE $ 549,310,338 2.7% CBTPA 280,887,800 1.8%
GSP $ 383,393,314 1.9% UKFTA 190,687,725 1.2%
CBTPA $ 280,887,800 1.4% COTPA 177,368,397 1.1%
COTPA $ 237,280,107 1.2% OMFTA 75,856,380 0.5%
ILFTA $ 214,478,426 1.0% ILFTA 55,519,473 0.4%
OMFTA $ 75,876,080 0.4% AUFTA 10,668,538 0.1%
BHFTA $ 55,139,708 0.3% CLFTA 9,400,858 0.1%
AUFTA $ 23,371,490 0.1% GSP 7,474,846 0.0%
CLFTA $ 19,330,191 0.1% MAFTA 6,061,648 0.0%
MAFTA $ 7,475,143 0.0% NPPP 1,207,531 0.0%
NPPP $ 1,719,665 0.0% SGFTA 446,890 0.0%
PATPA $ 1,388,574 0.0% PATPA 277,722 0.0%
SGFTA $ 1,125,417 0.0% BHFTA 9,106 0.0%
CBERA $ 122,193 0.0% CBERA 45 0.0%
Total $20.5 B Total $15.4
68 B

Textile Production Verification Team

• Known as TPVT
• Team members may include:
o Import Specialists, Immigration and Customs Enforcement
Investigators (HSI), CBP Auditors or International Trade
Specialists
• Teams visit Foreign Manufacturing Operations
o Verify origin of the goods
o Verify whether goods meet the rules for preferential
treatment
o Evaluate production capacity of the factory/type of goods,
amount of goods capable of being produced, etc.

Contact Information
OTTEXTILE_POLICY_ENF@CBP.DHS.GOV

Revenue

Revenue Overview
 CBP processed $2.39 trillion in imports in FY 2017, equating to approximately 33.2
million entries and more than 28.5 million imported cargo containers
 CBP collected approximately $40.1 billion in duties, taxes, and other fees, (including
more than $34.8 billion in duties).
 CBP is the 2nd largest revenue collecting source in the federal government
 The goal of the Revenue PTI is to maximize revenue recoveries and collection efforts
by ensuring strong controls over revenue related trade processes and by focusing trade
targeting on material revenue risks (which encompasses all PTI’s) facilitate trade by
eliminating ineffective targets, use data informed decision making, and collaborate
through a whole of CBP approach

Revenue Overview (continued)
 The estimated net underpayment (Revenue Gap) was $697 million in FY 2016;
representing 1.53% of estimated revenue. The responsibility for collection of that
revenue is shared by many internal stakeholders as represented by allpriority trade
issues and offices within the Office of Trade, Office of Field Operations, and Office of
Enterprise Services.

Revenue Risk, Threats, and Vulnerabilities
 Increased import volume raises the likelihood of:

 Misclassification. Deliberate or inadvertent misclassification of merchandise
poses a revenue risk as importers evade proper duties by classifying imported
merchandise in lower duty or duty-free provisions
 Undervaluation. Improperly declared values to evade duties.
 Bonds. Particular problem in the realm of AD/CVD due to the retrospective system
in place to arrive at final duty amounts.
 Collections. Difficulty in collecting outstanding debt due to importer’s going out of
business or claiming an inability to pay continues to be vulnerability.

Revenue Risk, Threats, and Vulnerabilities (continued)
 The Revenue Gap. In FY 2015, $649 million was projected as going uncollected
based on the congressionally mandated Trade Compliance Measurement (TCM)
program.

Revenue Enforcement Strategy
 Adequately identify revenue sources (i.e. Entries, Reconciliation, Reg Audit)
 Adequately identify collection mechanisms (i.e. bonds, account write-offs, prior

disclosures, etc.
 Adequately review various internal refund processes to minimize duplications

(trade preferences, drawback, etc.)

Revenue Enforcement Tools
 NTAC – effective targeting and developing revenue operations
 CBP Revenue Working Group (OT, OFO, HSI, Centers)
 Collaboration with internal/external stakeholders to identify importing trends, etc.)
 Regulatory Audit


Trade Enforcement and Facilitation - Priority Trade Initiatives (2018-06-26)

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Trade Enforcement and Facilitation - Priority Trade Initiatives (2018-06-26)

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U.S.

CUSTOMS AND BORDER PROTECTION

June 27, 2018

Priority Trade Issue – (PTI)

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Priority Trade Issues (7)

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For Official Use Only

Why is Agriculture a Priority Trade Issue?

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• 7 U.S. Code § 451 - “Agricultural products”

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For Official Use Only

For Official Use Only

What is the O.T Agriculture Mission?

For Official Use Only

Quota and Agriculture Product Limits

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Quota and Agriculture: (continued)

Quota and Agriculture Overview:

Note: currently agriculture products subject to quota are Tariff

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Significant Agriculture Quota Products

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What Can I do to Help?

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Quota Reference Material

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For Official Use Only

We appreciate your time and participation!

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For Official Use Only

CBP Import Safety PTI - Table of Contents

• Import Safety PTI Scope

For Official Use Only

CBP Import Safety PTI - Scope

• The term “Import Safety” refers to recognized United States

• The term “recognized standards” refers to those standards for

For Official Use Only

CBP Import Safety PTI - Scope

Import Safety Priorities – High-Risk Areas:

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CBP Import Safety PTI - Strategic Challenges and Risks

• Inaccurate or Incomplete Information on Imports

For Official Use Only

CBP Import Safety PTI - Strategic Approach

Engagement – Broaden and Deepen Stakeholder Partnerships

For Official Use Only

For Official Use Only

CBP Import Safety PTI - Commercial Targeting & Analysis Center

As One-U.S. Government at the Border, CTAC facilitates information sharing and

For Official Use Only

CBP Import Safety PTI - Trade Facilitation and Trade Enforcement

Title I – TRADE FACILITATION AND TRADE ENFORCEMENT

Title II - IMPORT HEALTH AND SAFETY

For Official Use Only

For Official Use Only

Intellectual Property Rights

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IPR Violations CBP Enforces

For Official UsFor Official Use Only

IPR Enforcement Statistics: 2000 - 2017

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IPR Risks: Consumer Safety, National