U'S' Customs and Border Protection

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U.S. Customs and Border Protection
EXPORT ENFORCEMENT AND YOU

• Sam McLinn
• Assistant Port Director Tactical Operations
• Cleveland Area Port

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CBP Goals

• Prevent terrorists and terrorist weapons from
  entering the United States
• Facilitate legitimate trade and travel
• Includes goods destined for export

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CBP a Fusion

• CBP was created on March 1, 2003
• It incorporates the former
• US Customs Service (Field Operations)
• US Immigration and Naturalization Service
  (Inspections)
• US Border Patrol
• Elements from the former Customs Air and Marine
  Offices
• Elements from USDA

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CBP Authority

• CBP has the broadest law enforcement authority of
  any agency
• At this time, we enforce over 600 laws and
  regulations for over 60 different agencies
• CBP officers apprehend more Federal and state
  fugitives than any other agency

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Post September 11,2001

• CBP is on heightened alert
• We are Americas front line in counterterrorism
• We have reallocated resource to high risk sites
  including the border
• We have altered our emphasis from drug and trade
  enforcement and other traditional missions to
  include anti- and counterterrorist efforts
• CBP officers have unique training that makes them
  very effective
• Outbound is a priority

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Cleveland Area Port

• The Cleveland Area Port supports operations in
  Ohio, Kentucky, Indiana, and Pennsylvania
• Cleveland, Toledo, Erie, and Ashtabula are
  seaports
• We also have operations in Indianapolis,
  Columbus, Louisville, Dayton, Evansville-Owensboro
  , and Cincinnati

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History of Operation EXODUS

• 1981 - Customs became the lead agency in the
  Presidents program to block the transfer of
  critical U.S. technology to unfriendly countries.
• Now - Operation Shield America is in progress
  Keeping sensitive technologies out of the hands
  of terrorists.
• DISRUPT AND DISMANTLE

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Why?

• Historically, Ohio ranks in the top 5 of
  exporting states
• In Cincinnati alone, attempts were made to
  illegally export over FOUR MILLION DOLLARS in
  shipments in the last three years
• The monetary value is secondary to the negative
  impact on national security
• CBP not only has the authority to investigate
  EXODUS matters, but also the resources and
  expertise

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Attack funded by Export ?
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Operation EXODUS Objectives

• To stop the flow of critical technology and to
  enforce compliance by intercepting and/or seizing
  such shipments.
• To disrupt groups and individuals responsible for
  these illegal exports.

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Roads to Compliance

• Informed
• Good
• Enforced
• Bad (for you)

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All 1.5M parts are licensable
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Post 9/11 An Exporters View

• ICE (Immigration and Customs Enforcement) is
  taking referrals more seriously - Shield
  America
• CBP HQ is participating in more referrals and
  exams
• Now even the U.S. Government must comply with
  export regulations (GAO report - FMS Cases)
• COOPERATION BETWEEN ALL EXPORT PARTIES IS OF
  UTMOST IMPORTANCE!

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Responsibilities

• Forwarders
• Shippers/Carriers
• Exporters
• Customs and Border Protection

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Responsibilities of Forwarders

• Provide accurate information
• Know your exporter, know when to report problems
• Accurate AES transmissions
• Correct submissions of paper SEDs
• Record keeping requirements - five years

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Responsibilities of Carriers

• Proper manifesting of goods
• Know your exporter, know when to report problems
• Hazardous/dangerous goods requirements
• Requirements for submission of SEDs - goes
  against carriers bonds
• Record keeping requirements - five years

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Responsibilities of Exporters

• Provide accurate information
• Respond quickly to CBP requests for technical
  data, further information
• Know CBP, Department of Commerce and Department
  of State requirements
• Record keeping requirements - five years
• Accurate AES transmissions
• No self-blinding!

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CBP Responsibilities

• Outreach
• Provide Resources
• Knowledge
• Speedy Response
• Professional Service
• Ensure Compliance

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Monitor vs Merrimac licensable (Never
converted to commercial applications)
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Code of Federal Regulations

• 15 CFR Parts 1-799 (DOC)
• 19 CFR (CBP) specifically 19 CFR 161.2 and
  18.25-26
• 21 CFR Parts 1300-1399 (DEA)
• 22 CFR Parts 120-130 (DOS)
• 27 CFR Parts 447-555 (ATF)
• 31 CFR parts 200-end (OFAC)

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22 USC 401

• Addresses seizure, forfeiture and disposition of
  the export of war materials and other articles in
  violation of law

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Requests For Information

• If you are contacted by CBP when outbound
  merchandise is detained, please provide all
  documents and/or information as quickly as
  possible
• Once the team is in contact with the exporter, we
  usually deal with them only
• The faster CBP receives the information, the
  faster a determination can be made

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Schedule B Numbers

• Be careful with item classifications, Schedule B
  numbers and the appropriate exceptions
• Many SEDs have information that has ABSOLUTELY
  NOTHING to do with items on the entry (i.e.,
  magazines, barrels, and a/c parts)

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Know Your Customer

• Export parties should regularly ask their
  customers if they have anything to do with other
  agency controlled merchandise
• If they do, contacts should be established within
  those companies in case SEDs are not submitted
  properly
• These files should be flagged so they are handled
  properly

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120 mm mortar shell being fired
Too late to apply for a license
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Common Issues With Exports

• A common problem is when sales, engineering or
  scientist department representatives export
  licensable material or perform technical services
  without checking with their export or legal
  department
• Sometimes they unknowingly carry material from
  foreign customers that is licensable
• Be aware that the disclosure of
  sensitive/licensable technical data to a foreign
  national is considered to be an export
• A license or other agreement issued by the DOS
  or DOC will most likely be required

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Trade Act of 2002

• Full Mandatory filing in AESEliminates the paper
  SEDEliminates Data Entry Centers
• For Federal Register notices, see
  http//www.census.gov/foreign-trade/regulations/fe
  dregnotices/index.html

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Questions???

• Port of Cleveland Engle Road Office
• CBP export assistance
• 440.891.2536
• Sam McLinn
• 440.891.3811
• samuel.mclinn_at_dhs.gov

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