	Introduction

International trade is a critical component of the U.S. economy, with U.S. goods trade amounting to about $4 trillion in 2014, with merchandise imports of $2.4 trillion and exports of $1.6 trillion (see Appendix B ). The efficient flow of legally traded goods in and out of the United States is thus a vital element of the country's economic security. While U.S. trade in imports depends on the smooth flow of legal cargo through U.S. ports of entry (POE), the goal of trade facilitation often competes with two additional goals: enforcement of U.S. trade laws and import security. Third, the import process and CBP's role in it are discussed. Congress has a direct role in organizing, authorizing, and defining CBP's international trade functions, as well as appropriating funding for and conducting oversight of its programs. There is an inherent tension between efforts to promote efficient trade flows, and a second goal of U.S. import policy: the enforcement of trade laws designed to protect U.S. consumers and business against illegal imports and to collect customs revenue. Some U.S. importers and some in Congress have criticized CBP for neglecting trade facilitation in favor of import security and trade enforcement. At the same time, others in Congress and in the trade community assert that the United States may remain vulnerable to a terrorist attack against a port of entry—with potentially catastrophic results—and that CBP should place greater emphasis on import security, even if the economic costs are high. In the Senate, on May 14, 2015, the text of S. 1269 was incorporated into H.R. 644 (which was renamed the Trade Facilitation and Trade Enforcement Act of 2015) and subsequently passed by a vote of 78-20. On June 12, 2015, the House passed an amended version of H.R. 644 by a vote of 240-190. 644 addresses intellectual property rights (IPR) enforcement. Also related to AD/CVD laws, the House version would establish a Trade Remedy Law Enforcement Division in CBP, direct CBP to identify evasion, authorize increased data sharing between CBP, the Department of Commerce, and the U.S. International Trade Commission for enforcement actions against evasion, and direct CBP to enter into agreements with customs officials in foreign countries to increase cooperation in combatting evasion The House version would also require CBP to assign sufficient personnel to prevent and investigate evasion, require CBP to submit an annual report to Congress detailing evasion policies and activities, terminate the ability of new shippers to post bonds during new shipper AD/CVD reviews, and require the Government Accountability Office (GAO) to submit a report to Congress on the effectiveness of CBP efforts in investigating and preventing AD/CVD duty evasion. DHS's bureau of Customs and Border Protection (CBP) has been the lead agency facilitating, enforcing, and securing trade flows since 2003. 103-182 ), also known as the Customs Modernization and Informed Compliance Act, or "Mod Act." Homeland Security Act of 2002 (P.L. 107-296)

The Homeland Security Act of 2002 (HSA, P.L. 109-347 ) and the Implementing Recommendations of the 9/11 Commission Act of 2007 (The 9/11 Act, P.L. 110-53 ). CBP's trade strategy also emphasizes layered enforcement , meaning that risk assessment and risk-based enforcement happen at a number of different points in the import process, beginning well before cargo arrives at a U.S. port of entry, and continuing long after cargo has been formally admitted to the United States. Trusted Trader Programs

One of CBP's primary tools for risk management is the use of trusted trader programs, including the Customs-Trade Partnership Against Terrorism (C-TPAT), which was established in November 2001, after the 9/11 attacks, and subsequently authorized as part of the SAFE Port Act of 2006 (see " Security and Accountability For Every (SAFE) Port Act of 2006 ( )"). In May 2014, DHS Secretary Jeh Johnson extended the deadline for an additional two years. Customs Modernization

Customs modernization refers to the transition from CBP's Automated Commercial System (ACS) to its Automated Commercial Environment (ACE) for managing trade-related data (see " Pre-Entry: Advanced Cargo Screening, Scanning, and Inspections "), and the development of the International Trade Data System (ITDS). The Mod Act of 1993 (Title VI of P.L.
International trade is a critical component of the U.S. economy, with U.S. merchandise imports amounting to $2.4 trillion and exports to $1.6 trillion in 2014. The efficient flow of legally traded goods in and out of the United States is thus a vital element of the country's economic security.
U.S. Customs and Border Protection (CBP), within the Department of Homeland Security (DHS), is the primary agency charged with monitoring, regulating, and facilitating the flow of goods through U.S. ports of entry (POEs). CBP's policies are designed to (1) ensure the smooth flow of imported cargo through U.S. POEs; (2) enforce trade and customs laws designed to protect U.S. consumers and business and to collect customs revenue; and (3) enforce import security laws designed to prevent weapons of mass destruction, illegal drugs, and other contraband from entering the United States—a complex and difficult mission. Congress has a direct role in organizing, authorizing, and defining CBP's international trade functions, as well as appropriating funding for and conducting oversight of its programs. In the Senate, on May 14, 2015, S. 1269 was incorporated into H.R. 644 (renamed the Trade Facilitation and Trade Enforcement Act of 2015) and subsequently passed by a vote of 78-20. On June 12, 2015, the House passed an amended version of H.R. 644 by a vote of 240-190. Senate and House leaders have reportedly committed to resolve the two bill versions in a conference committee.
Laws currently authorizing the trade facilitation and enforcement functions of CBP (as outlined in the Customs Modernization and Informed Compliance Act, Title VI of P.L. 103-182) emphasize a balanced relationship between CBP and the trade community based on the principles of "shared responsibility," "reasonable care," and "informed compliance." Since the 9/11 terrorist attacks of 2001, Congress has placed greater emphasis on import security and CBP's role in preventing terrorist attacks at the border. Legislation addressing customs procedures and import security includes the Homeland Security Act of 2002 (P.L. 107-296), the Security and Accountability for Every (SAFE) Port Act of 2006 (P.L. 109-347), and the Implementing Recommendations of the 9/11 Commission Act of 2007 (P.L. 110-53).
CBP's current import strategy emphasizes a risk management approach that segments importers into higher and lower risk pools and focuses trade enforcement and import security procedures on higher-risk imports, while expediting lower-risk flows. CBP's "multi-layered" risk management approach means that security screening and enforcement occur at multiple points in the import process, beginning before goods are loaded in foreign ports (pre-entry) and continuing long after the time goods have been admitted into the United States (post-entry).
How effectively CBP has performed its import policy mission is a matter of some debate. Some participants in CBP's "trusted trader" programs argue that the concessions (e.g., expedited processing; fewer container inspections) CBP provides at the border do not adequately justify the effort and expense to certify their supply chains. Questions have also been raised about CBP's management of trade facilitation, especially the means through which the Automated Commercial System (ACS) trade data management system is being phased out in favor of the newer Automated Commercial Environment (ACE). Some critics also assert that CBP has not adequately fulfilled its trade enforcement role, especially its duties for preventing illegal transshipments, protecting U.S. intellectual property rights, and collecting duties. Still others criticize CBP's performance of its security functions, especially because it does not yet physically scan 100% of maritime cargo as mandated by the SAFE Port Act of 2006, as amended. In May 2014, DHS Secretary Jeh Johnson extended the deadline for an additional two years.