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Compliance Down, Collections Up for CBP in FY 2018

Monday, March 25, 2019
Sandler, Travis & Rosenberg Trade Report

Materials on the Department of Homeland Security’s proposed budget for fiscal year 2020 include the following information on U.S. Customs and Border Protection’s achievements in FY 2018.

Automated Commercial Environment

- the savings to the trade community from ACE development was $36 million in FY 2018 (the first time it was calculated) and CBP has a goal of $140 million in FY 2019

Collections

- the percent of import revenue successfully collected rose to 99.44 percent from 99.05 percent in FY 2017 and CBP’s goal for FY 2019 is 99.0 percent

- $52.0 billion in duties, taxes, and fees were collected, including more than $40.6 billion in duties, a 23 percent increase from FY 2017 (attributed largely to the $527 million in Section 201 tariffs on washers and solar cells, $1.1 billion in Section 232 tariffs on aluminum, $3.4 billion in Section 232 tariffs on steel, and $8.0 billion in Section 301 tariffs on goods from China)

 

Compliance

- the percent of imports compliant with U.S. trade laws fell to 98.72 percent from 99.38 percent in FY 2017, still above CBP’s standard goal of 97.5 percent

Enforcement

- the percent of inbound cargo identified as potentially high-risk that is assessed or scanned prior to departure to or arrival at a U.S. port of entry declined to 97.88 percent from 99.5 percent in FY 2017

- 33 allegations under the Enforce and Protect Act (regarding AD/CV duty evasion) were properly filed, interim measures were taken in six ongoing investigations, and final determinations were issued in 12 investigations

 

Trade partnership programs

- the compliance rate of CTPAT members with established program security guidelines grew to 96.8 percent from 96.0 percent in FY 2017, above CBP’s standard goal of 94.0 percent

- the cost savings benefit for CTPAT was calculated for the first time and came in at $65 million, above CBP’s goal of $60 million

- the percent of cargo by value imported by participants in CBP trade partnership programs increased to 53.3 percent from 53.1 percent in FY 2017, above CBP’s goal of 53.0 percent for FY 2016 onward

Trade processing

- more than 29.7 million cargo containers were processed and more than 35 million trade transactions were processed

- nearly 500 million international mail shipments were cleared through nine international mail facilities and another 131 million express shipments were cleared at 26 express facilities

For more information on these and other customs-related issues, please contact Lenny Feldman at (305) 894-1011 or Tom Gould at (213) 453-0897.

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