American engineer, inventor and businessman Dean Kamen once said, “Every once in a while, a new technology, an old problem, and a big idea turns into an innovation.”
Over the past few years, international trade has seen a need for innovation and change within the industry, and unprecedented situations have caused many businesses to rethink the flow of their supply chain.
U.S. Customs and Border protection has also seen this need for change as the global trade environment has evolved and technology advanced. Thus spurring the creation of the 21st Century Customs Framework initiative. Goals of this initiative are to:
Achieve end to end supply chain transparency.
Drive data-centric decision-making.
Identify and allocate risk to appropriate parties.
At his year’s Trade Facilitation and Cargo Security, CBP stressed the importance of communication and partnership between U.S. customs and the trade community, which will continue further progress of the 21CCF initiative.
CBP addressed many topics at this year’s summit advising on their continued efforts to secure supply chains and combat the ongoing issue with illicit opioids crossing our borders.
Here is a more in-depth summary of the TFCS summit from the U.S. Customs and Border Protection.
As importers, there are a few initiatives to be aware of going forward as more information may be required in order to process your shipments.
CBP Addressed many topics
Including their continued efforts to secure supply chains and combat the ongoing issue with illicit opioids crossing our borders.
Global Business Identifier Test
This test “examines the functionality and effectiveness of identifiers as a tool to improve U.S. government visibility into imports and facility supply chain traceability amid a trading system that is increasingly complex, globalized, and comprised of multiple actors.” CBP has partnered with Dun andB, and the Global Legal Entity Identifier Foundation to utilize data collected by these parties to assist in supply chain visibility.
Under the test, the trade can voluntarily submit one or more of the following three identifiers for certain party types on an entry (manufacturer, shipper, seller, exporter, distributor and packager):
The Global Location Number (GLN) from GS1
The Data Universal Numbering System (DUNS) from Dun & Bradstreet (D&B)
The Legal Entity Identifier (LEI) from the Global Legal Entity Identifier Foundation (GLEIF)
How to Participate in the Test: Importers of record and licensed customs brokers seeking to participate should email the GBI Inbox (GBI@cbp.dhs.gov) with the subject heading “Request to Participate in the GBI Test.” Please reference 89 FR 9859, issued on February 12, 2024, for details.
“...businesses have to decide and figure out who are “friends”,
and defining “friend” is more complicated.”
Supply Chain Resiliency
Another important area to assess is supply chain resiliency. COVID and other global unrest has shown the trade how important it is to prepare and plan for any and all issues that can disrupt supply chain movement. Doing a risk assessment of your supply chain would help provide insight into the areas that need fortifying or if business practices need to be changed. Areas to consider review would be investing in freight and cargo insurance, diversifying the supply chain and routing options, and assessing cyber security risks.
Cyber security, which CBP recently created and provided guidance, is a major topic within the trade community given the breaches experienced by steamship lines in the past couple of years. Securing data and networks is imperative to avoid and deter bad actors from stealing data and committing fraud. We have seen many notices from steamship lines and other forwarders noting that banking details have not been changed, or to check email addresses when receiving requests for funds as there are frauds impersonating legit vendors. You can find more details on the CBP Trade Cybersecurity Website and also in our recent issue of Capito’s Update (click here to subscribe).
“10 years from now the supply chain will look much different than it does now…this shift in supply chains is due to multiple impetuses, and businesses have to decide and figure out who are “friends”, and defining “friend” is more complicated,” said trade expert Bill Reinsch in a panel discussion with Executive Assistant Commissioner AnnMarie Highsmith. Reinsch is senior advisor and School Chair in International Business at the Center for Strategic & International Studies. He is also one of the hosts of The Trade Guys podcast where they discuss various trade topics and insights.
For more information on any of these topics, please contact our team and we can help provide more insight and information on these areas.