Government

Increased scrutiny

Trade compliance experts have for months told the Journal of Commerce that importers need to recognize that CBP scrutiny of import supply chains— not just import shipments— would ramp up.

For example, one compliance source who asked not to be identified said the Altana tool helps CBP proactively identify the content and value of steel and aluminum in a given product so that Section 232 duties on those components are claimed and paid correctly, something the source called“ a huge challenge right now.”

“ These trade policies are compelling the border agencies to scrutinize the supply chain network beyond their own borders.”

And the agency’ s technology expansion encompasses more than just Altana. Another software vendor, Exiger, announced in late October it had signed a multi-milliondollar deal with CBP to detect fraudulent country-of-origin determination by importers.

Altana’ s strategy has been to work with custom authorities and large global third-party logistics providers and then approach importers and exporters to persuade them to use a common platform. The Product Passport tools are a manifestation of that aim.

“ Think of it as a payload of information from the importer to CBP,” Smith said.“ AI screens it on both sides, and any potential risk is flagged, and now CBP and the importer’ s suppliers have a collaboration layer.”

As an example, Smith said a CBP officer can say,“ this thing in your tier 2 supplier looks off to us,” and the importer can then upload documents that attest to the“ hygiene” of the supplier. That communication between CBP and the importer typically is not possible outside of a trade compliance dialogue or determination process that involves shipment detention and / or legal proceedings.

With importers receiving a historic level of Customs Forms 28( CF-28) requests for information issued by CBP about specific shipments, Smith said the passports are essentially a way to avoid having to respond to the deluge of such requests.

Altana is currently rolling out the capability with CBP to create passports for e-commerce and small packages so the customs agency can better handle the flood of entries associated with shipments that previously qualified as duty-free under the de minimis rule. This extension would create a data pipeline from an e-commerce checkout platform or a courier booking to allow CBP to do the same pre-screening with AI, with the customs entry linked through an Altana-assigned ID to the specific shipment.

“ It’ s an architecture designed for this new trade paradigm, separate of, and in advance of, the customs entry,” Smith said.“ And in the dream state, the entry dissolves away because it’ s not needed.” The compliance expert agreed.“ This will eventually become the entry process itself for larger importers,” the source said.

email: eric. johnson @ spglobal. com

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