Sin ttulo de diapositiva

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US MEXICO CUSTOMS COOPERATION
Bilateral Strategic Plan
United States Mexico Chamber of Commerce 12th
Annual U.S. Mexico Congressional Border Issues
Conference Washington, D.C. March 2008
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US MEXICO BORDER

• Facts (Common Border)
• 2,000 mile land border
• 1.15 million persons cross the border daily
  (est)
• 520,000 non-commercial cars cross the border
  daily (260,000 each way)
• 70,000 commercial trucks cross the border daily
  (35,000 each way)
• More than 330 billion dollars in bilateral
  trade (2007 - 904 million per day)
• 90 of such trade (297 billion) goes through
  the common border (814 million per day)
• 73 moves on trucks (241 billion - 660 million
  per day)
• 17 moves on rail (56 billion 153 million per
  day)

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US MEXICO BORDER

• Background
• Neighbors
• Longstanding relationship
• Constant increase in bilateral trade
• September 11, 2001
• Our bilateral challenge
• Strengthen Security / Facilitate Trade

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US MEXICO CUSTOMS COOPERATION

• Legal Framework
• Customs Mutual Assistance Agreement
• North American Free Trade Agreement (NAFTA)
• US Mexico Border Partnership
• North American Security and Prosperity
  Partnership
• Customs Bilateral Strategic Plan

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US MEXICO CUSTOMS COOPERATION

• BSP Seven Strategic Goals
• (derived from the Declaration Of Principles)
• Foster professionalism and integrity of the
  customs personnel
• Fully automated customs processing environment
  and electronic exchange of information
• Improve and expand Customs Trade partnerships
• Border Efficiency
• Enhance/expand customs enforcement cooperation
• Customs and supply chain security
• Emergency response and business resumption

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US MEXICO CUSTOMS BILATERAL STRATEGIC PLAN

• 1) Foster Professionalism and Integrity of the
  Customs Personnel
• Joint and country-specific training (all
  fields, ongoing)
• Exchange of customs personnel (to learn best
  practices)
• Exchange of information and joint investigations
  between Internal Affairs Departments
• Sharing of best practices on integrity matters

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US MEXICO CUSTOMS BILATERAL STRATEGIC PLAN

• 2) Fully automated customs processing environment
  and electronic exchange of information
• Complete implementation of mechanisms for the
  electronic exchange of information on all modes
  of transportation (truck is completed, working on
  rail, sea, air)
• MX Customs implemented maritime 24-hour Rule on
  September 1, 2007
• MX Customs and CBP to complete implementation of
  e-manifest for all modes of transportation
  (ongoing)
• Transit towards a paperless environment (ongoing)

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US MEXICO CUSTOMS BILATERAL STRATEGIC PLAN

• 3) Improve and expand Customs Trade
  partnerships
• Enhance Mexicos Empresas Certificadas program
  (add security components) and expand US C-TPAT
  program in MX
• More than 700 Empresas Certificadas 62 of
  imports/exports
• 295 CTPAT MX manufacturers 41 of MX exports
  to the US
• Joint outreach programs (ongoing)
• Exchange of information on applicants,
  certified, rejected and expelled companies
• Sharing of best practices to better harmonize
  programs
• Promote WCO Framework of Standards amongst
  customs administrations and Private Sector of
  this Hemisphere (ongoing)

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US MEXICO CUSTOMS BILATERAL STRATEGIC PLAN

• 4) Border Efficiency
• Purpose Reduce waiting times (measuring
  mechanism by third party)
• Port-by-Port approach
• Harmonize and adapt hours of service (cargo)
• Segregation of cargo and empty trucks (45 of
  trucks crossing the border come empty either way)
• Local trade practices (brokers, banking hours..)
• Synchronization of personnel required and
  assigned
• Align infrastructure projects
• Bilateral encrypted communication systems and
  protocols
• Expansion of the FAST/Exprés dedicated lanes
  program

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Security and Facilitation

• Actions
• 8 dedicated FAST and Exprés lanes at y Ports
  (Otay, Calexico, Nogales, El Paso (2), Colombia,
  Laredo, Pharr)
• 7 more ports will have either dedicated lanes or
  dedicated booths or dedicated hours of service in
  2007-08

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Facilitation

• Stats
• 19.25 of total export transactions on truck
• 41.26 of total value of exports on truck
• 20.13 of total import transactions on truck
• 39.14 of total value of imports on truck

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US MEXICO CUSTOMS BILATERAL STRATEGIC PLAN

• 5) Enhance/expand customs enforcement cooperation
• Tasks assigned to two different subgroups (lead
  by MXC and ICE w/CBP support)
• The Bilateral Enforcement Task Force
• The Bilateral Trade-Fraud Subgroup
• Enforcement Task Force (ongoing)
• Special Agents assigned
• Domestic and joint investigations, exchange and
  analysis of customs intelligence
• Focus Contraband and smuggling of prohibited
  goods, such as firearms and illegal narcotics, as
  well as cash and organized crime-related cross
  border transactions.
• Trade-Fraud Subgroup (ongoing)
• Customs experts and data analysts assigned to
  mine data deriving from the mechanisms for
  electronic exchange and the Trade Transparency
  Unit (TTU).
• Domestic and joint investigations, exchange and
  analysis of data and findings
• Focus trade fraud, undervaluation, illegal
  transshipment, avoidance/evasion of duties and
  taxes, misclassification of goods, falsification
  of origin, violation of non-tariff regulations
  and IPR regulations.

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US MEXICO CUSTOMS BILATERAL STRATEGIC PLAN

• Since 2004 the cooperation between ICE and
  Mexico Customs has been very successful,
  especially in detecting and seizing bulk cash
  intended to be smuggled by air passengers in
  outbound flights, which has resulted in US57
  million seized at Mexican airport (US1.1 million
  last week)
• Joint investigations at the US-MX border have
  allowed us to detect and seize more than 100
  truckloads of different kinds of merchandise
  (mainly textiles), which were intended to be
  smuggled into Mexico. These seizures have taken
  place on both sides of the border.
• In the last months, several individuals have
  been apprehended. They were involved in importing
  goods into Mexico falsifying origin and claiming
  NAFTA benefits
• Through these actions we are sending a strong
  message of our joint efforts to smugglers,
  criminals, drug dealers and to persons and
  companies trying to abuse the benefits of NAFTA.

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US MEXICO CUSTOMS BILATERAL STRATEGIC PLAN

• 6) Customs and supply chain security
• Purpose Implement same customs security
  standards in processing incoming and outgoing
  shipments and passengers
• Focus Security threats, terrorists and
  terrorism threats
• HAZMATS and dual-use materials (ongoing)
• Export Controls (ongoing)
• Bilateral emergency response protocols (ongoing)
• Secure emergency line

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US MEXICO CUSTOMS BILATERAL STRATEGIC PLAN

• 7) Emergency response and business resumption
• Business Resumption Program
• Compatible and consistent with the general
  business resumption program
• Everybody needs to know what to do, who to call,
  what to bring, where to go, how to react, what
  measures to implement
• In general terms, CTPAT and Empresas
  Certificadas should be allowed to continue their
  operations
• Layered Approach Measures implemented only at
  affected or potentially to be affected locations,
  depending circumstances.
• Approach by Ports of Entry and/or modes of
  transportation
• Common communication strategy (websites and
  media)
• Tabletop exercises and drills (ongoing)

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US MEXICO CUSTOMS BILATERAL STRATEGIC PLAN

• Flag Projects
• Mexicos Secure Supply Chain Program (WCO
  Framework of Standards - ongoing)
• Mexico Customs Targeting Center (ongoing)
• Long-Term Projects
• The bilateral Working Groups are discussing
  proposals and ideas that in the coming months
  will be presented for approval and we will make
  them public.

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US MEXICO CUSTOMS COOPERATION

• Other key aspects of the Bilateral Cooperation on
  Customs Matters that improve the security of the
  region and foster its competitiveness are
• Exchange of Advance Passenger Information
• Deployment of cutting edge non-intrusive
  inspection technology that strengthens security
  while facilitating customs processing

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US MEXICO CUSTOMS COOPERATION
Advance Passenger Information System (APIS)

• 122 commercial airlines operate in Mexico and
  transmit API data to Mexico Customs
• 230,000 flights per year
• 19.6 million passengers per year (53,000 per
  day)
• Data is exchanged and run through security data
  bases
• Domestic and bilateral protocols to respond to
  alerts have been implemented and tested in
  real-life scenarios/cases

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US MEXICO CUSTOMS COOPERATION
Securing the Mexican Customs Ports of Entry

• Actions
• Deployment of VACIS (X ray and Gamma ray) at all
  land ports, seaports and airports (equipment
  already deployed at bussiest ports).
• VACIS deployed at all border rail crossings
  (100 of rail cars crossing the border go through
  VACIS)
• Under the Megaports Initiative, radiation
  detection portals being deployed at the 4
  bussiest MX seaports (Manzanillo, Lazaro
  Cardenas, Altamira, Veracruz), where 92 of our
  maritime cargo is processed.

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US MEXICO CUSTOMS COOPERATION

• Highest Levels of Security
• In 2006, the US imported 170.2 billion dollars
  from MX
• 17 of those imports (US28.9 billion) enter the
  US on rail. All rail cars go through VACIS to
  increase security and expedite the process.
• 41.26 of those imports (US70.2 billion) belong
  to CTPAT certified/validated MX manufacturers
  that enter the US through FAST dedicated lanes.
• The combination of the above amounts (99.1
  mmdd) is equivalent to
• More than 100 of US imports from Germany
  (US84.8 billion)
• More than 100 of US imports from the UK and
  Taiwan, combined (US85.9 billion)
• More than 100 of US imports from France, Italy
  and Spain, combined (US73.4 billion)
• More than 100 of US imports from the UK and
  France, combined (US84.9 billion)
• Mexico, being the third largest trading partner
  of the US, dispatches cargo to the US in a secure
  manner. The CTPAT, FAST, Empresas Certificadas,
  and other programs aimed at improving security
  and facilitation of the supply chain will
  continue expanding in MX and supported by MX
  Customs. In the coming months we will extend our
  efforts to the maritime and air modes.

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US MEXICO CUSTOMS COOPERATION
Highest Levels of Security to protect our peoples
and economies With the implementation of the
24-hour Rule in Mexico and having the APIS as a
proven effective tool, Mexico Customs and CBP are
now capable of collecting, sharing and analyzing
core data pertaining to all shipments and persons
destined to their territories, before those
persons and shipments depart from their port of
origin. In addition to the above, through the
implementation of the e-manifest initiative and
the electronic exchange of customs information,
our customs agencies are now better prepared to
detect and combat contraband and fraud, as well
as terrorists and terrorism threats.
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U.S. Mexico Customs Cooperation
Juan José Bravo Moisés Administrator
General Mexico Customs