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Ann Beauchesne: Okay, well good morning, everybody.

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Welcome. I'm Ann Beauchesne.

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I'm the Senior Vice-President for National Security

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and Emergency Preparedness here at the U.S. Chamber.

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We're so glad that you could join us here today,

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and the U.S. Chamber is very pleased to welcome back our friend and partner

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U.S. Customs and Border Protection Commissioner Gil Kerlikowske

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for his first State of the Agency address focused on trade.

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As the Commissioner begins his second year at CBP

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we thought that this was a perfect time to address the trade community

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and give them an overview of what's coming up.

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The Chamber supports the dual mission of CBP, protecting

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national security objectives while promoting economic prosperity.

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We see ourselves as a partner in their mission.

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Businesses are linked together through a global web of interconnected,

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predictable and efficient supply chains.

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U.S. businesses rely on those supply chains to access international consumers

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as well as compete in the global marketplace.

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Improvements that address cross border frictions smooth the flow of trade

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and enhance the competitiveness of all of our companies.

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We at the Chamber will continue to advance priorities

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that improve the performance of global supply chains.

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This advocacy will include policy and regulatory reform,

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pursuing effective legislation on the hill,

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promoting commercially meaningful commitments

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from our trade partners to advance global customs modernization.

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As the hill moves forward with trade permission authority we must not forget

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about the bipartisan Trade Facilitation and Trade Enforcement Act

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or customs modernization.

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As you know this legislation takes aggressive action

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to address checkpoints at our borders,

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lower the transaction costs of trade

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and provide needed resources for trade facilitation,

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customs modernization and the enforcement of our intellectual property rights.

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As the executive order on trade facilitation enters its second year,

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the Chamber will continue to engage DHS in the interagency

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to ensure the delivery of a commercially meaningful single window

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that meets the White House's 2016 deadline.

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And finally as the trade facilitation agreement advances,

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the Chamber is committed to a public/private partnership that

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ensures accountability for commercially meaningful implementation.

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We look forward to working with CBP to modernize customs procedures and streamline

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the passage of goods by cutting red tape and bureaucracy at our global borders.

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With that said we know we have a great partnership with

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Commissioner Kerlikowske and his team.

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We look forward to working together to advance our shared priorities

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on modernizing the border processes for 21st century trade.

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It is now truly my pleasure to introduce Commissioner Kerlikowske.

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Gil Kerlikowske was nominated by President Obama and sworn in in March 7, 2014,

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as Commissioner, taking the helm of the 60,000 employee agency

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with a budget of 12.4 billion dollars.

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As Commissioner he leads the largest federal law enforcement agency

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and second largest revenue collecting source in the federal government.

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The Commissioner brings nearly four decades of law enforcement

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and drug policy experience to the office of the Commissioner.

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Previously he served in such distinguished positions

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as Director of the White House Office of National Drug Policy,

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Chief of Police in Seattle, Washington,

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Police Commissioner in Buffalo, New York,

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and the majority of his law enforcement career

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was spent with the St. Petersburg Police Department.

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He has received numerous awards and recognition for his leadership,

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innovation and community service.

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Gil, thank you for your lifetime of service to our great country.

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Please give a warm welcome to Commissioner Kerlikowske.

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Gil Kerlikowske: Well, good morning, everybody.

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Thank you so much for being here, and Ann,

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thank you very much for the very warm welcome.

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It's always a pleasure to come to the Chamber.

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It's always a great honor.

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The Chamber and all of its staff have been great partners with CBP

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and actually on the drug-free workplace

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when I served as the president's drug policy advisor so thank you very much.

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And I really appreciate the opportunity to be with all of you today.

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Many of you over the last year

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since I've had this job and actually during my confirmation process,

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I had the opportunity to get to know you,

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get to understand a lot of these issues and talk about them quite a bit.

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And I'd also like to thank the people that are attending via the webinar.

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So I'm sure there are people in Florida that have nice tans

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that are busy watching this, watching this also.

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The Chamber is absolutely vital to our nation's economic health,

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and as champions of American business you help;

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the Chamber helps our industries compete and lead on the global playing field.

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And I believe that another player in this

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is the United States Customs and Border Protection.

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We play a critical role in the effort.

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And the success of our mission, ensuring border security

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while facilitating lawful trade and travel,

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is integral to America's global competitiveness.

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On a typical day, and many of you already know these statistics

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but I wouldn't be a good fed if I didn't repeat some of them to you.

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On a typical day CBP processes more than a million people,

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screens more than 70,000 truck, rail and sea cargo containers

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at our 328 ports of entry,

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processing 4.4 billion dollars in exports, 6.8 billion dollars in imports.

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Trade and travel facilitation are balanced with

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a strong commitment to a seamless border security,

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and it makes our mission difficult but it also means that we have to have

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good collaboration, good communication and good partners.

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And that certainly includes every one of you that are here today.

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Well, last May when I had a chance to speak here at the Chamber

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I barely had two months in office

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and so some people were wondering, How does someone with a law enforcement,

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strong law enforcement background for many, many years;

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how are you going to adapt to this trade and this travel issue?

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How are you gonna make sure that you're paying attention to the

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economic security along with the border security?

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And how are you gonna navigate the incredible complexities of trade?

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After all, issues like supply chain security and cargo pre-inspection,

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mutual recognition arrangements, they all have their own special language.

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And in CBP I think we have the most acronyms.

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I think we're competing with the Department of Defense for the most acronyms.

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It's a different world and some might say that it can be for me particularly

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it was a bit more opaque than the law enforcement lingo of narcotics

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and smuggling and some of the crime issues that CBP deals with.

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But in my first year as Commissioner I've seen firsthand,

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and I've traveled all over the United States and frankly all over the world.

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I've gotten to see firsthand how integral our mission

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is to the nation's economic health and vitality and the safety

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and security of that global supply chain.

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In 2014 we cleared 2.5 trillion dollars in imports,

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1.6 trillion dollars in exports.

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We processed 26 million cargo containers, and that was an increase of 4% over 2013.

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And as everyone in this room and everyone watching clearly knows,

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those increases not only in trade but those increases in travel

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are something that we're certainly seeing in this fiscal year also.

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Well, seeing that firsthand and that volume at the ports

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provided a greater understanding of the complexity of the trade process

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and how they can present some real significant challenges for you,

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for those of you that are in global business.

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We enforce laws for 50 federal agencies.

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We have equities in, they all have equities in the trade process,

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hundreds of different types of forms,

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many more acronyms that are required to import and export goods.

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The system is and can be time consuming and it can be costly.

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And that's not only for government but for all of you as well.

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That's why CBP has really focused on streamlining and modernizing our process.

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We're really indebted to people that have worked

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and been longtime colleagues such as Algena at CBP

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and for the work that they did, and then to see them transform

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or to go over to work in the private sector

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is only of great benefit to both parties.

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CBP has to meet this international trade that is predicted,

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this growth in trade that's predicted in the next few years.

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I want to share with you some of the progress we've made

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and I want to talk with you about some of the things

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that we've charted for the future.

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So first of all was filling a number of key positions.

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Over the course of since Secretary Johnson has been in office not quite two years

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it was very clear to him that there were far too many acting positions

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in the Department of Homeland Security.

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And he made a real effort and has been incredibly successful

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at getting people confirmed through the United States Senate.

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But that's also been true for CBP.

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Prior to my confirmation we had a number of acting positions including

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acting positions within as Commissioner of Customs and Border Protection.

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Those people did an outstanding job.

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I really stand on their shoulders

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whether it's an Alan Bersin or a Tom Winkowski or a David Aguilar or others.

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They did an incredible job.

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But as all of us know in this room and in the politics of inside the Beltway,

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it's helpful to have the [inaudible 10:23]

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or the good housekeeping seal of the United States Senate.

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So being the first confirmed Commissioner in the Obama administration

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I think is helpful,

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but it also gave me the opportunity

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to remove a number of acting titles away from people.

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So many of you had a chance to participate and congratulate Kevin McAleenan

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as no longer the acting Deputy Commissioner but the Deputy Commissioner.

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I was incredibly proud to appoint Brenda Smith

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as the Assistant Commissioner for International Trade

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and Sandra Bell as the Deputy

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and Todd Owen coming from the Port of Los Angeles

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as the Assistant Commissioner for Field Operations

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and a strong partner with John Wagner as the Deputy,

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and then Rich Denucci with many, many, many years of experience in this field

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as the Executive Director of Cargo and Conveyance Security.

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All of these individuals are true experts

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and they're innovators in the trade mission,

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and they are a tremendous asset not only to CBP and DHS.

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They're a tremendous asset to the nation's economy and all of you;

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Maria Louisa Boyce who heads our Office of Trade Relations

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and is also our trade ombudsman,

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and the additional staff that I put in place in my office right down the hall

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to directly connect with me when it comes to issues that are of concern to you.

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And they work with me on a daily basis to make sure that I understand and recognize

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and live up to the promises that I've made regarding these priorities.

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I'm pleased to announce here today though that as

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we've made these promotions we also of course create vacancies with that.

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And there is no single area that is more important than making sure that

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we deliver it on time and that it operates well, and that's in the ACE program.

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Steve Hilson is the CBP Lead Executive for the Single Window initiative,

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and I hope you can all give Steve a little round of applause for taking this on.

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Steve is going to coordinate all of the activities

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within CBP in that role with the Single Window.

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He is the primary point of contact for CBP participation

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in all of our U.S. government activities relating to the Single Window

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and that includes his work with the Border Interagency Executive Council,

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the International Trade Data System Board, community stakeholders.

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We should be paying you more money obviously.

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I could go on, but actually there's a lot.

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Well, speaking of the Single Window as part of CBP's trade transformation strategy,

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we've really accelerated the deployment of our import/export processing system,

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the Automated Commercial Environment, ACE.

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You recognize; you clearly recognize what a huge shift this is moving from

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these paper based and fax and original signatures

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and a number of questions that perhaps in this day and age

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aren't as necessary to be asked,

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but because we had always done it that way we always continued to do it that way.

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We've moved to a faster modernized, more cost effective electronic submissions.

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As we close in on key milestones,

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and I could never give a speech without making sure that

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I give those key milestones,

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on May 1 and November 1 of this year and October 2016,

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all key dates that you're well aware of.

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CPB continues to develop tests and deploy the capabilities

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that are all designed to transform cargo processing.

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Many of you know ACE is the core of the executive order

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that was signed by President Obama in 2013.

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So that December 2016 deadline for completion of the government-wide

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automated Single Window would streamline government.

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CBP and DHS are spearheading this effort, and ACE is the Single Window.

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It's going to allow relevant federal agencies to review

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and respond to cargo movement, reduce costs and speed the cargo process.

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And we're working closely with all of our federal partners including the EPA,

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the Food Safety and Inspection Service,

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many others to ensure that ACE is equipped to meet their requirements

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because we have to be a good steward.

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We have to be a good partner with them.

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And that Single Window is completed to serve your needs

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and to simplify international business.

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Well, an area that I'm really excited about is the eBond area.

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Our CFO Jay Williamson is here

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and the people that were involved in this eBond transformation.

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It's pretty exciting.

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So eBond processing in ACE, one of the most important modernization efforts in ACE;

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eBond is a tremendous benefit to both CBP and to the filers,

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customs brokers, self-filing importers, et cetera.

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When filers electronically transmit a bond to CBP

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they get a positive response within 10 to 15 seconds;

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before it was four to five days.

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So you can begin to understand the magnitude of this change

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and its effect on the supply chain.

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Industry has recognized this benefit

246
00:15:31,568 --> 00:15:36,303
and in the first month of eBonds more than 11,000 bonds were created in ACE.

247
00:15:36,303 --> 00:15:41,494
Today more than 90% of the CBP bond market is being submitted electronically.

248
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That's really exciting news.

249
00:15:43,214 --> 00:15:45,525
It's good for us and it's good for business.

250
00:15:45,525 --> 00:15:49,852
Another key development are our centers of excellence and expertise.

251
00:15:49,852 --> 00:15:52,709
And the centers are transforming the way we operate

252
00:15:52,709 --> 00:15:57,548
by consolidating the industry's processing under the authority of one center.

253
00:15:57,548 --> 00:16:00,979
So instead of scattering it throughout hundreds of ports of entry

254
00:16:00,979 --> 00:16:04,987
and perhaps importers getting different answers at different ports of entry,

255
00:16:04,987 --> 00:16:07,035
these centers benefit everyone.

256
00:16:07,035 --> 00:16:12,018
They improve our ability to identify high risk cargo and importations.

257
00:16:12,018 --> 00:16:16,289
They increase the consistency and predictability for the industry.

258
00:16:16,289 --> 00:16:20,784
And if I've heard one set of watchwords over and over from you all

259
00:16:20,784 --> 00:16:26,119
for quite some time, it's about the importance of consistency and predictability.

260
00:16:26,119 --> 00:16:30,527
You're making your business decisions, your budgets, your hiring, on and on and on,

261
00:16:30,527 --> 00:16:33,974
and you want to make sure that we're going to be in the same position,

262
00:16:33,974 --> 00:16:37,884
talking with the same set of talking points,

263
00:16:37,884 --> 00:16:41,925
and moving in the same direction so that as you make these investments

264
00:16:41,925 --> 00:16:44,084
that we're living up to our potential too.

265
00:16:44,084 --> 00:16:48,331
And they reduce transactional costs for trade in CBP.

266
00:16:48,331 --> 00:16:52,938
We have three of CBP's ten centers as of January 28

267
00:16:52,938 --> 00:16:57,754
are managing all post release activities in their specific areas;

268
00:16:57,754 --> 00:17:01,224
electronics in Los Angeles, pharmaceuticals in New York,

269
00:17:01,224 --> 00:17:04,304
petroleum/natural gas and minerals in Houston.

270
00:17:04,304 --> 00:17:07,793
And we look forward to having the other seven virtual centers

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being able to live up to that full functionality as well.

272
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Trusted Trader, we're all familiar with Trusted Trader programs

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00:17:17,174 --> 00:17:20,007
and they've been a key focus of ours for some time.

274
00:17:20,007 --> 00:17:22,670
And we're unifying our customs trade partnership

275
00:17:22,670 --> 00:17:25,813
against terrorism and the importer self-assessment.

276
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I've heard repeatedly also from people in this room and people that are watching

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that it's important for us to make sure that if someone goes

278
00:17:34,843 --> 00:17:39,835
and an organization goes to the extra effort and the time to be thoroughly vetted

279
00:17:39,835 --> 00:17:44,801
to become a member of CTPAT that they're actually experiencing those benefits.

280
00:17:44,801 --> 00:17:48,449
We needed to and are working hard to do a better job

281
00:17:48,449 --> 00:17:51,753
of making sure that those benefits are 1, transparent,

282
00:17:51,753 --> 00:17:53,895
and that they're easily accessible

283
00:17:53,895 --> 00:17:57,440
and understood by the people that have gone to that extra trouble.

284
00:17:57,440 --> 00:18:03,735
So whether it's being first in line, whether it's not having cargo held up as long,

285
00:18:03,735 --> 00:18:06,126
because you've gone through those things to make sure

286
00:18:06,126 --> 00:18:10,437
that we understand the obligations that we have,

287
00:18:10,437 --> 00:18:14,605
because you've gone to that extra effort and we appreciate that.

288
00:18:14,605 --> 00:18:19,876
The Trusted Trader program also aligns the Authorized Economic Operator programs,

289
00:18:19,876 --> 00:18:24,178
those worldwide programs that are being implemented by other countries,

290
00:18:24,178 --> 00:18:27,435
and frankly they're being implemented by those other countries

291
00:18:27,435 --> 00:18:29,538
with our help and our assistance.

292
00:18:29,538 --> 00:18:33,866
Our over 800 people overseas and the work that we're doing overseas

293
00:18:33,866 --> 00:18:37,152
is not just about protecting the United States.

294
00:18:37,152 --> 00:18:40,856
It's also about making sure that by pushing those borders out,

295
00:18:40,856 --> 00:18:45,744
giving people the information and the help, and letting them experience 1,

296
00:18:45,744 --> 00:18:48,799
the successes that we've had in implementing these programs,

297
00:18:48,799 --> 00:18:53,062
but also 2, making sure that they understand that in a very open

298
00:18:53,062 --> 00:18:55,222
and transparent way we can tell them about things

299
00:18:55,222 --> 00:18:59,173
that we've tried or worked on and they haven't been quite as successful.

300
00:18:59,173 --> 00:19:00,373
It saves them time.

301
00:19:00,373 --> 00:19:01,581
It saves mistakes.

302
00:19:01,581 --> 00:19:05,356
And frankly it just adds to that trusted relationship when you're

303
00:19:05,356 --> 00:19:10,171
not only willing to say these are all the great things that we've done at CBP,

304
00:19:10,171 --> 00:19:12,562
and here's what we're able to do to be helpful.

305
00:19:12,562 --> 00:19:13,890
But here are some of the things,

306
00:19:13,890 --> 00:19:17,689
the mistakes that we've made or things that haven't worked out as well.

307
00:19:17,689 --> 00:19:20,714
And we can save them time and we can save them effort.

308
00:19:20,714 --> 00:19:24,633
That's what makes a trusted partner when it comes to these issues.

309
00:19:24,633 --> 00:19:27,864
So we're bringing them together along with us.

310
00:19:27,864 --> 00:19:31,385
And in designing the program we're coordinating with the trade community,

311
00:19:31,385 --> 00:19:35,031
other government agencies to build a program of security and

312
00:19:35,031 --> 00:19:40,758
compliance requirements that's really a value add for them and for us.

313
00:19:40,758 --> 00:19:44,349
Well, cargo security, there are some people here that are just intimately,

314
00:19:44,349 --> 00:19:49,268
intimately familiar with ACAS or the Air Cargo Advanced Screening program.

315
00:19:49,268 --> 00:19:51,859
It shows our collaboration with the private sector

316
00:19:51,859 --> 00:19:53,700
and other law enforcement agencies,

317
00:19:53,700 --> 00:19:58,099
really enhances our enforcement and targeting capabilities.

318
00:19:58,099 --> 00:19:59,922
And of course as many of us know,

319
00:19:59,922 --> 00:20:03,369
ACAS was launched in the wake of a true terrorist threat,

320
00:20:03,369 --> 00:20:07,587
the explosives that were hidden in printer cartridges, printer toner cartridges

321
00:20:07,587 --> 00:20:10,841
and intercepted in express mail shipments from Yemen

322
00:20:10,841 --> 00:20:14,847
that were destined for the United States in 2010.

323
00:20:14,847 --> 00:20:19,775
As the national targeting center, CBP and the Transportation Security, TSA,

324
00:20:19,775 --> 00:20:24,327
jointly target and mitigate air cargo identified as high risk

325
00:20:24,327 --> 00:20:27,774
before it is loaded on a U.S. bound aircraft.

326
00:20:27,774 --> 00:20:32,094
And industry has recognized the value of the program, improving national security

327
00:20:32,094 --> 00:20:37,148
and integrity of the supply chain, and prevents major business disruption.

328
00:20:37,148 --> 00:20:44,876
Last year industry participation in ACAS grew by 15%.There are now 51 participants.

329
00:20:44,876 --> 00:20:47,875
We need to continue to collaborate and work together.

330
00:20:47,875 --> 00:20:51,450
The things that I've described here, Single Window, the centers,

331
00:20:51,450 --> 00:20:56,233
the Trusted Trader, ACAS, underscore our commitment to working with stakeholders

332
00:20:56,233 --> 00:20:58,440
and to modernize how we do business.

333
00:20:58,440 --> 00:21:01,889
COAC is one of the areas that I am most proud of.

334
00:21:01,889 --> 00:21:06,183
As a key platform collaborate for collaboration with industry,

335
00:21:06,183 --> 00:21:10,407
the Commercial Operations Advisory Committee is critical.

336
00:21:10,407 --> 00:21:14,199
It comprises a broad array of private sector representatives,

337
00:21:14,199 --> 00:21:19,604
each bringing an incredible depth of experience and expertise in customs processes,

338
00:21:19,604 --> 00:21:24,523
the global supply chain and other fields that can inform and affect how we operate.

339
00:21:24,523 --> 00:21:27,205
And the parameters for the Single Window for example

340
00:21:27,205 --> 00:21:31,235
were thoroughly vetted and subjected to careful review and validation

341
00:21:31,235 --> 00:21:34,883
both within CBP and the interagencies we like to say

342
00:21:34,883 --> 00:21:37,330
but also within the broader trade community.

343
00:21:37,330 --> 00:21:39,706
COAC is the key to that process.

344
00:21:39,706 --> 00:21:42,745
It is an invaluable asset to CBP.

345
00:21:42,745 --> 00:21:45,473
COAC is an invaluable asset to me.

346
00:21:45,473 --> 00:21:49,712
I want to be able to announce the selection of the new members of COAC

347
00:21:49,712 --> 00:21:52,447
and some of them are here

348
00:21:52,447 --> 00:21:55,712
but Cynthia Allen of DHL Global Forwarding,

349
00:21:55,712 --> 00:21:58,647
Brenda Barnes of the George S. Bush & Company,

350
00:21:58,647 --> 00:22:05,846
Jeita Bray of CAUS, Celeste Catano of KEWILL, Lenny Feldman of Sandler,

351
00:22:05,846 --> 00:22:09,515
Travis & Rosenberg, Lisa Gelsomino of Avalon Risk Management,

352
00:22:09,515 --> 00:22:12,796
Alexandra Latham of COSTCO,

353
00:22:12,796 --> 00:22:19,060
Amy Magnus of A.N. Derringer, Adam Salerno U.S. Chamber of Commerce,

354
00:22:19,060 --> 00:22:22,202
and Madeline Vegal Expediters International,

355
00:22:22,202 --> 00:22:25,739
Michael White International Air Transport Association,

356
00:22:25,739 --> 00:22:30,234
and Michael Young Orient Overseas Container Line.

357
00:22:30,234 --> 00:22:33,968
And they are going to be joined eight reappointed members;

358
00:22:33,968 --> 00:22:37,960
David Beery of Swift Transportation, Scott Boyer of Kraft Foods,

359
00:22:37,960 --> 00:22:44,495
Brendan Freed of Air Forward Association, Susanna Hager of Abbott Laboratories,

360
00:22:44,495 --> 00:22:49,477
Vincent Iacopella of the Janel Group, Elizabeth Merritt Airlines for America,

361
00:22:49,477 --> 00:22:53,510
and Julianne Parks Raytheon Company, and Kevin Pinnell of Microsoft.

362
00:22:53,510 --> 00:22:57,684
What a strong and diverse team, internationally type of business,

363
00:22:57,684 --> 00:23:02,125
everything that you want when you're thinking through these really complex issues.

364
00:23:02,125 --> 00:23:06,235
And the amount of time and the effort that they spend and the fact that

365
00:23:06,235 --> 00:23:09,219
they have such great support from their organizations

366
00:23:09,219 --> 00:23:14,906
and their companies is really unbelievably incredibly helpful to us.

367
00:23:14,906 --> 00:23:18,762
And I look forward to continuing to work with them.

368
00:23:18,762 --> 00:23:23,792
Well, interagency collaboration is important as many of you know too.

369
00:23:23,792 --> 00:23:26,040
We work closely with Treasury

370
00:23:26,040 --> 00:23:32,286
and Tim Scott could not be a better partner with us in these areas.

371
00:23:32,286 --> 00:23:37,046
We work closely with something called that Border Interagency Executive Council,

372
00:23:37,046 --> 00:23:41,406
something that Deputy Secretary Mayorkas takes very seriously

373
00:23:41,406 --> 00:23:44,470
and is involved in on a regular basis.

374
00:23:44,470 --> 00:23:48,252
And it's a true commitment by the interagency at the highest level

375
00:23:48,252 --> 00:23:51,388
to make sure that people are involved in all of these things.

376
00:23:51,388 --> 00:23:53,898
It brings together those senior leaders to examine

377
00:23:53,898 --> 00:23:58,658
and improve import and export processes throughout the United States government.

378
00:23:58,658 --> 00:24:01,810
And we have key leadership roles in the group as it examines

379
00:24:01,810 --> 00:24:05,993
and makes decisions about risks, how we use information and move cargo,

380
00:24:05,993 --> 00:24:09,041
collect revenue, enforce health and safety laws.

381
00:24:09,041 --> 00:24:12,632
All of these discussions are informed by the advice from industry

382
00:24:12,632 --> 00:24:16,991
to improve the supply chain process and to reduce barriers for trade.

383
00:24:16,991 --> 00:24:19,543
And the type of collaboration is critical.

384
00:24:19,543 --> 00:24:21,038
For example during the five years

385
00:24:21,038 --> 00:24:24,334
that I served as President Obama's drug policy advisor

386
00:24:24,334 --> 00:24:29,422
I had a good, strong, wonderful working relationship with the FDA.

387
00:24:29,422 --> 00:24:32,916
That was over the prescription drug and [inaudible 24:31] abuse issues

388
00:24:32,916 --> 00:24:36,540
that some people are familiar with from quite a bit of attention

389
00:24:36,540 --> 00:24:38,363
and publicity that it has gotten.

390
00:24:38,363 --> 00:24:41,522
But we had to have that working relationship with the FDA,

391
00:24:41,522 --> 00:24:44,955
and so working with Dr. Hamburg as the FDA Commissioner,

392
00:24:44,955 --> 00:24:48,585
I continued that on when I got the job here at CBP.

393
00:24:48,585 --> 00:24:50,480
And thanks to that relationship we have

394
00:24:50,480 --> 00:24:55,232
a CBP/FDA working group that is working together with you all

395
00:24:55,232 --> 00:25:00,815
in a way to reduce some of the problems of delayed shipment

396
00:25:00,815 --> 00:25:03,327
and transfer of those programs.

397
00:25:03,327 --> 00:25:07,942
And I thank Dr. Hamburg as she now after six years at the helm of the FDA

398
00:25:07,942 --> 00:25:11,662
for her strong leadership as she retires.

399
00:25:11,662 --> 00:25:14,149
And in our phone call and discussion the other day,

400
00:25:14,149 --> 00:25:18,373
she's made it clear to the staff and the key leadership within FDA

401
00:25:18,373 --> 00:25:21,860
that these relationships and this partnership should continue.

402
00:25:21,860 --> 00:25:24,220
I'm also working very closely with Elliott Kay,

403
00:25:24,220 --> 00:25:27,091
the Chairman of the Consumer Product Safety Commission.

404
00:25:27,091 --> 00:25:27,922
We've met.

405
00:25:27,922 --> 00:25:28,867
We've talked.

406
00:25:28,867 --> 00:25:33,274
We've discussed on how can we be more helpful to CPSC

407
00:25:33,274 --> 00:25:36,266
and in fact how can we help ease some of the burden?

408
00:25:36,266 --> 00:25:37,497
We have a lot of people.

409
00:25:37,497 --> 00:25:39,697
We have a lot of, as we like to say,

410
00:25:39,697 --> 00:25:43,641
we have a lot of boots on the ground when it comes to our ports of entry.

411
00:25:43,641 --> 00:25:49,527
We can be a huge benefit and again value add to these other interagencies.

412
00:25:49,527 --> 00:25:52,503
The more they trust us, the more work we can do with them,

413
00:25:52,503 --> 00:25:56,184
the more knowledge and understanding that we have about what they do,

414
00:25:56,184 --> 00:26:02,766
the better we can be in helping them achieve their legislative priorities and goals

415
00:26:02,766 --> 00:26:05,805
and making sure that they live up to their obligations,

416
00:26:05,805 --> 00:26:10,348
but then of course the more helpful we can be to all of you.

417
00:26:10,348 --> 00:26:13,803
Well, during that first year I met with many of the Chamber members.

418
00:26:13,803 --> 00:26:18,898
It was made abundantly clear that CBP has to continue to be a leader

419
00:26:18,898 --> 00:26:24,073
internationally on global supply chain security standards and enforcement.

420
00:26:24,073 --> 00:26:27,353
In my meetings with the World Customs Organization

421
00:26:27,353 --> 00:26:30,584
at a variety of levels it's been very clear.

422
00:26:30,584 --> 00:26:37,623
In my travels around the world it has been made very clear to me by our partners

423
00:26:37,623 --> 00:26:45,878
throughout this global environment how hopeful and helpful we can be to them.

424
00:26:45,878 --> 00:26:48,910
And I think that's tremendously beneficial.

425
00:26:48,910 --> 00:26:52,220
You're seeing that move where in many places customs

426
00:26:52,220 --> 00:26:56,828
is by far a single focus on revenue collection

427
00:26:56,828 --> 00:27:01,324
and where by far now customs is trying to meet that dual obligation,

428
00:27:01,324 --> 00:27:03,778
the same obligation that we have

429
00:27:03,778 --> 00:27:06,483
and that I think we've dealt with successfully

430
00:27:06,483 --> 00:27:09,059
although we can certainly and will do more.

431
00:27:09,059 --> 00:27:11,169
But I think that those are the kinds of lessons learned

432
00:27:11,169 --> 00:27:13,049
that we're going to bring forward.

433
00:27:13,049 --> 00:27:15,017
We watch; they watch us closely.

434
00:27:15,017 --> 00:27:19,863
The world watches CBP closely, and we're eager to share our experiences

435
00:27:19,863 --> 00:27:24,176
with our foreign counterparts so that we can better align policies.

436
00:27:24,176 --> 00:27:27,311
To that end with the World Customs Organization

437
00:27:27,311 --> 00:27:32,069
and their 178-member nations we play a large role.

438
00:27:32,069 --> 00:27:35,749
They have considerable interest in our initiatives and our policies,

439
00:27:35,749 --> 00:27:39,149
and I have sought every opportunity to engage them

440
00:27:39,149 --> 00:27:44,403
and to make sure that they know that we are more than willing to be as helpful

441
00:27:44,403 --> 00:27:47,243
and to provide as much assistance as possible.

442
00:27:47,243 --> 00:27:52,099
But we need a stronger voice frankly from the United States.

443
00:27:52,099 --> 00:27:53,507
We have that expertise.

444
00:27:53,507 --> 00:27:55,266
We have that credibility.

445
00:27:55,266 --> 00:27:59,240
I couldn't have been more pleased to nominate Ana Hinojosa,

446
00:27:59,240 --> 00:28:02,537
our Deputy Assistant Commissioner for International Affairs,

447
00:28:02,537 --> 00:28:08,024
to be the U.S. delegate to WCO's Director of Compliance and Facilitation.

448
00:28:08,024 --> 00:28:11,520
Ana brings 28 years of experience in CBP.

449
00:28:11,520 --> 00:28:13,343
She worked on the southwest border.

450
00:28:13,343 --> 00:28:15,648
She was a port director.

451
00:28:15,648 --> 00:28:18,821
She can bring all of that to that international body.

452
00:28:18,821 --> 00:28:22,733
And we have not had someone in one of those elected director positions

453
00:28:22,733 --> 00:28:27,636
since Commissioner Bonner was in office as the Commissioner of Customs.

454
00:28:27,636 --> 00:28:31,108
So it's gonna be important and I'm working very hard in trying to

455
00:28:31,108 --> 00:28:36,547
make sure that people will recognize what a value she will be to WCO

456
00:28:36,547 --> 00:28:41,537
and to all of the WCO members.

457
00:28:41,537 --> 00:28:43,898
The security integrity of the global supply chain

458
00:28:43,898 --> 00:28:46,497
depends on those international partnerships.

459
00:28:46,497 --> 00:28:49,448
Mutual recognition arrangements are a critical tool

460
00:28:49,448 --> 00:28:52,696
that align standards to the international community.

461
00:28:52,696 --> 00:28:58,328
These arrangements provide a platform to exchange Trusted Trader information

462
00:28:58,328 --> 00:29:02,654
and to harmonize reciprocal supply chain programs.

463
00:29:02,654 --> 00:29:08,110
During the first year as Commissioner I got to sign four MRA's, Mexico;

464
00:29:08,110 --> 00:29:12,397
three MRA's, sorry, in Mexico, Israel and Singapore.

465
00:29:12,397 --> 00:29:15,085
The secretary just signed the agreement

466
00:29:15,085 --> 00:29:17,780
and I'll take about it in a minute with Canada.

467
00:29:17,780 --> 00:29:20,548
But bringing together these arrangements is important.

468
00:29:20,548 --> 00:29:25,307
We only have ten of these by the way since 2003 so you can see that

469
00:29:25,307 --> 00:29:30,201
we've really tried to speed up that process of getting these in place.

470
00:29:30,201 --> 00:29:34,930
A key focus has been strengthening our relationship and partnership with Mexico in

471
00:29:34,930 --> 00:29:40,089
the 2,000 miles of shared border and the 50 ports of entry we have with them.

472
00:29:40,089 --> 00:29:44,856
Ongoing engagement, building upon the areas identified in the 21st century border

473
00:29:44,856 --> 00:29:49,400
initiative, improving and expanding border infrastructure.

474
00:29:49,400 --> 00:29:53,798
So if you've been to San Ysidro lately, you can see that instead of

475
00:29:53,798 --> 00:29:57,757
the long lines of people waiting to get into the United States

476
00:29:57,757 --> 00:30:02,500
or cargo or produce waiting to get into the United States that San Ysidro

477
00:30:02,500 --> 00:30:06,836
has reduced the time, the wait times to a much smaller amount.

478
00:30:06,836 --> 00:30:09,739
That's because the United States government, taxpayers,

479
00:30:09,739 --> 00:30:14,028
have made an investment in improving that critical infrastructure.

480
00:30:14,028 --> 00:30:19,249
So when we team up with a better facility and we team up with more people

481
00:30:19,249 --> 00:30:22,744
and better technology, we can really speed things through.

482
00:30:22,744 --> 00:30:26,840
And that's what is going on and is highly visible in San Ysidro

483
00:30:26,840 --> 00:30:29,888
and then certainly going on in Nogales also.

484
00:30:29,888 --> 00:30:33,016
So these are the kinds of things and including a new agreement

485
00:30:33,016 --> 00:30:36,167
for the terminal facility in Tijuana airport.

486
00:30:36,167 --> 00:30:38,143
But I knew after going back;

487
00:30:38,143 --> 00:30:40,758
I've been back about four times to San Diego

488
00:30:40,758 --> 00:30:45,758
and the first time the complaints about the wait times were there.

489
00:30:45,758 --> 00:30:49,300
This time the complaints were from the venders selling water

490
00:30:49,300 --> 00:30:52,836
saying people are moving through the line too quick.

491
00:30:52,836 --> 00:30:55,692
So there's always a complaint.

492
00:30:55,692 --> 00:30:59,034
As I mentioned, our two countries signed a mutual recognition arrangement

493
00:30:59,034 --> 00:31:01,379
in October, and this was historic.

494
00:31:01,379 --> 00:31:07,474
Our CTPAT program and Mexico's NECK program, supply chain security programs,

495
00:31:07,474 --> 00:31:12,640
each have this mutually recognizable arrangement so that we can have better trust.

496
00:31:12,640 --> 00:31:16,240
And as we look at designing ports of entry in the future,

497
00:31:16,240 --> 00:31:22,544
particularly with Mexico and Canada, how can this be done in a more efficient way?

498
00:31:22,544 --> 00:31:25,279
Well, the northern border in the United States and Canada

499
00:31:25,279 --> 00:31:28,926
just signed with the Secretary and Minister Blaney

500
00:31:28,926 --> 00:31:32,934
a history new pre-clearance agreement

501
00:31:32,934 --> 00:31:36,756
in accord with that 2011 Beyond the Borders action plan.

502
00:31:36,756 --> 00:31:40,259
That accord covers all modes of transportation

503
00:31:40,259 --> 00:31:43,698
between the U.S. and Canada, land, rail, marine and air.

504
00:31:43,698 --> 00:31:46,259
Immigration, customs, agriculture inspections

505
00:31:46,259 --> 00:31:49,162
required for entry into either country

506
00:31:49,162 --> 00:31:53,810
will be able to be handled on foreign soil on the opposite side of the border.

507
00:31:53,810 --> 00:31:58,130
It'll reduce congestion, delays, and increase efficiency and predictability

508
00:31:58,130 --> 00:32:01,640
in cross border travel, tourism and transportation.

509
00:32:01,640 --> 00:32:04,640
And the next step required is to implement the new agreement.

510
00:32:04,640 --> 00:32:08,856
This is for the United States and Canada to now enact legislation.

511
00:32:08,856 --> 00:32:12,326
Well, that legislation was introduced during the last Congress

512
00:32:12,326 --> 00:32:14,142
and I'm hopeful that it will be introduced

513
00:32:14,142 --> 00:32:17,310
and that you will support its passage in this Congress.

514
00:32:17,310 --> 00:32:18,957
Let me just mention before I close

515
00:32:18,957 --> 00:32:25,181
a little bit about the future and the change that's going to occur.

516
00:32:25,181 --> 00:32:28,453
Change is a lot like heaven.

517
00:32:28,453 --> 00:32:32,971
Kind of everyone wants to get there but no one wants to die.

518
00:32:32,971 --> 00:32:34,643
So we're working hard.

519
00:32:34,643 --> 00:32:35,811
And you know who said that?

520
00:32:35,811 --> 00:32:38,290
I got that statement from Carly Fiorina;

521
00:32:38,290 --> 00:32:40,490
so a pretty interesting statement.

522
00:32:40,490 --> 00:32:46,000
What's clear to me in preparing for the future is that we need to reflect

523
00:32:46,000 --> 00:32:50,991
the realities of your business and the world that you exist in,

524
00:32:50,991 --> 00:32:53,903
the constant evolution of the global supply chain.

525
00:32:53,903 --> 00:32:57,767
I recognize that while we have some major efforts already underway,

526
00:32:57,767 --> 00:33:00,407
there are some areas that need additional focus

527
00:33:00,407 --> 00:33:03,150
and they need more work and they need more work from us.

528
00:33:03,150 --> 00:33:09,028
Trade enforcement, over and over again I've never heard anyone say that,

529
00:33:09,028 --> 00:33:12,573
well, you shouldn't be enforcing or spending as much time on enforcement,

530
00:33:12,573 --> 00:33:15,652
but you should do it in a consistent, predictable way.

531
00:33:15,652 --> 00:33:18,140
And those that are violating our trade laws,

532
00:33:18,140 --> 00:33:21,195
those that are being required of enforcement,

533
00:33:21,195 --> 00:33:23,107
that it only helps the business,

534
00:33:23,107 --> 00:33:27,633
the businesses that are in fact playing by the rules

535
00:33:27,633 --> 00:33:29,585
and that have that level playing field.

536
00:33:29,585 --> 00:33:31,609
So we need to do a better job in that.

537
00:33:31,609 --> 00:33:35,184
I heard from congressional leaders about the importance of enforcement

538
00:33:35,184 --> 00:33:39,984
also and the critical role that we play in protecting our markets.

539
00:33:39,984 --> 00:33:41,888
We've made some strides.

540
00:33:41,888 --> 00:33:45,406
For example CBP and Immigration and Customs Enforcement,

541
00:33:45,406 --> 00:33:48,646
we have a new director as many of you know, Sarah Saldana.

542
00:33:48,646 --> 00:33:52,766
And Sarah was the United States Attorney in Dallas

543
00:33:52,766 --> 00:33:56,686
so she clearly understands enforcement and prosecution issues.

544
00:33:56,686 --> 00:34:00,492
So working closely with ICE Homeland Security investigations,

545
00:34:00,492 --> 00:34:03,772
we're trying to do more training for each of our components.

546
00:34:03,772 --> 00:34:08,042
We're trying to understand and work through the processes and the operations

547
00:34:08,042 --> 00:34:13,171
that we can attack smuggling and the growth in shipments of counterfeit goods.

548
00:34:13,171 --> 00:34:17,521
Many of these pose serious health and threats to public safety

549
00:34:17,521 --> 00:34:22,032
and also harm our national and economic security.

550
00:34:22,032 --> 00:34:25,072
And in addition trade penalty assessments have increased

551
00:34:25,072 --> 00:34:30,552
by 140% from 385 million dollars in fiscal year '11

552
00:34:30,552 --> 00:34:35,061
to over 900 million dollars in fiscal year 2014.

553
00:34:35,061 --> 00:34:37,950
But we clearly know that more can be done in that area.

554
00:34:37,950 --> 00:34:41,996
I know there are other aspects of the trade enforcement area

555
00:34:41,996 --> 00:34:44,765
that could really improve from our transparency.

556
00:34:44,765 --> 00:34:49,091
We've gone way out of our way after hearing a number of complaints

557
00:34:49,091 --> 00:34:50,676
because you're our eyes and ears.

558
00:34:50,676 --> 00:34:53,275
You give us the information.

559
00:34:53,275 --> 00:34:56,683
And when you make these complaints or you provide us information

560
00:34:56,683 --> 00:34:58,969
about things that you believe are wrong

561
00:34:58,969 --> 00:35:01,442
and things that we should be following up on,

562
00:35:01,442 --> 00:35:03,961
we haven't been particularly good in making sure that

563
00:35:03,961 --> 00:35:07,897
we're getting back to you about what did we do and how are we handling it.

564
00:35:07,897 --> 00:35:09,751
Sometimes the cases are complex.

565
00:35:09,751 --> 00:35:12,544
They take on a lengthy period of time.

566
00:35:12,544 --> 00:35:16,640
But still we need to make sure that we're doing a better job in that area.

567
00:35:16,640 --> 00:35:20,743
The enforcement and collection of anti-dumping and counter-evading duties,

568
00:35:20,743 --> 00:35:23,014
we're working with industry and Congress

569
00:35:23,014 --> 00:35:27,901
to increase that communication on those enforcement efforts.

570
00:35:27,901 --> 00:35:32,276
And reviewing regulations, we have tons and tons and tons of regulations.

571
00:35:32,276 --> 00:35:35,900
We need to do a better job of reviewing those regulations,

572
00:35:35,900 --> 00:35:38,651
and we need to do a better job of making sure that

573
00:35:38,651 --> 00:35:42,107
you have input into some of those regulations.

574
00:35:42,107 --> 00:35:44,666
And I believe that as many of my leadership team

575
00:35:44,666 --> 00:35:48,832
really talk about that we can improve and streamline the process.

576
00:35:48,832 --> 00:35:50,370
It's a complex discussion.

577
00:35:50,370 --> 00:35:51,752
It's time consuming.

578
00:35:51,752 --> 00:35:54,128
Many of you devote a lot of time to it.

579
00:35:54,128 --> 00:35:57,696
I couldn't be more pleased with the incredible amounts of time

580
00:35:57,696 --> 00:36:02,936
that the COAC members provide on this, but it is invaluable.

581
00:36:02,936 --> 00:36:06,111
We welcome your ideas, and this type of discussion

582
00:36:06,111 --> 00:36:08,302
can make a difference in years to come.

583
00:36:08,302 --> 00:36:11,933
Well, those are some of the efforts I plan on pursuing in the coming year.

584
00:36:11,933 --> 00:36:16,397
Everything I do as the Commissioner over these next several years,

585
00:36:16,397 --> 00:36:20,052
as long as the President keeps me, I think I'm supposed to say;

586
00:36:20,052 --> 00:36:22,500
over the next several years is going to be done

587
00:36:22,500 --> 00:36:25,236
to increase our trade and security mission.

588
00:36:25,236 --> 00:36:29,491
CBP plays that critical role in protecting our national security,

589
00:36:29,491 --> 00:36:34,658
safeguarding the supply chain from terrorism, transnational crime and fraud.

590
00:36:34,658 --> 00:36:36,514
And we carry out, and I've had a change

591
00:36:36,514 --> 00:36:41,073
to meet literally thousands and thousands of CBP employees.

592
00:36:41,073 --> 00:36:46,296
We carry out that mission in a very dedicated way with a professional staff,

593
00:36:46,296 --> 00:36:50,072
and we continue to make sure that we're hiring the very best people.

594
00:36:50,072 --> 00:36:53,191
We have to be an agile and a flexible organization.

595
00:36:53,191 --> 00:36:56,637
Sometimes that bumps up against bureaucracy,

596
00:36:56,637 --> 00:37:00,615
but I think we can work through many of those things and already have.

597
00:37:00,615 --> 00:37:05,725
When the world economic forum said that if you remove supply chain barriers

598
00:37:05,725 --> 00:37:10,459
you can increase the global economy six times more than removing all tariffs,

599
00:37:10,459 --> 00:37:13,244
everyone should pay attention and listen to that.

600
00:37:13,244 --> 00:37:15,235
And we have been listening to that.

601
00:37:15,235 --> 00:37:19,626
I want you to know that I recognize my responsibility to serve all of you

602
00:37:19,626 --> 00:37:21,979
and appreciate the input and the cooperation

603
00:37:21,979 --> 00:37:25,026
and the help and the advice and the assistance that you do.

604
00:37:25,026 --> 00:37:28,009
And we really appreciate having this robust dialogue

605
00:37:28,009 --> 00:37:29,831
with the Chamber and its members.

606
00:37:29,831 --> 00:37:32,874
We want to continue to fulfill our commitment

607
00:37:32,874 --> 00:37:36,887
to operating as a strong law enforcement organization

608
00:37:36,887 --> 00:37:42,054
while helping America's businesses remain competitive in the global marketplace.

609
00:37:42,054 --> 00:37:53,068
Thank you all very much.

610
00:37:53,068 --> 00:37:54,341
Ann Beauchesne: Thank you, Commissioner.

611
00:37:54,341 --> 00:37:57,051
We have a few minutes for questions, and if I could just ask you

612
00:37:57,051 --> 00:38:01,939
to state your name and who you're with to ask your question.

613
00:38:01,939 --> 00:38:03,723
Who would like to start it off?

614
00:38:03,723 --> 00:38:05,066
You did cover a lot of ground there.

615
00:38:05,066 --> 00:38:13,786
Thank you, sir.

616
00:38:13,786 --> 00:38:15,217
Man #1: Well, I thought we had one back here,

617
00:38:15,217 --> 00:38:18,104
but I will just lead off in the questions.

618
00:38:18,104 --> 00:38:21,352
There is a vocal group up here so I know you guys will have one soon,

619
00:38:21,352 --> 00:38:23,664
so, Spencer, get up there.

620
00:38:23,664 --> 00:38:26,351
Commissioner, thank you again for addressing the Chamber,

621
00:38:26,351 --> 00:38:31,039
its members and broader membership from other organizations as well.

622
00:38:31,039 --> 00:38:34,965
We appreciate your partnership as always.

623
00:38:34,965 --> 00:38:38,790
My question is in regards to your international comments.

624
00:38:38,790 --> 00:38:41,341
We obviously see the BOLA agreement moving forward

625
00:38:41,341 --> 00:38:44,556
and the trade facilitation being a big component of that.

626
00:38:44,556 --> 00:38:48,675
That's really focused on removing global borders and customs,

627
00:38:48,675 --> 00:38:50,539
customs barriers at borders.

628
00:38:50,539 --> 00:38:55,762
You mentioned that U.S. Customs can play a big role in the international environment.

629
00:38:55,762 --> 00:39:03,296
How do you see U.S. Customs taking its best practices and exporting those programs

630
00:39:03,296 --> 00:39:08,559
but also improving your processes as well and seeing what you could do

631
00:39:08,559 --> 00:39:12,288
to modernize to rise to the standards of the TFA?

632
00:39:12,288 --> 00:39:19,669
Gil Kerlikowske: I think we're fortunate to have two things going on right now.

633
00:39:19,669 --> 00:39:26,060
One is that with Assistant Secretary Bersin having held the helm of CBP

634
00:39:26,060 --> 00:39:31,580
and now being the Assistant Secretary for International Issues for DHS,

635
00:39:31,580 --> 00:39:32,860
we have a lot of support.

636
00:39:32,860 --> 00:39:38,580
One, Alan clearly recognized the value that CBP can bring to other countries.

637
00:39:38,580 --> 00:39:43,235
And so we're working hard as you look at things and changes in the world.

638
00:39:43,235 --> 00:39:46,465
We're working hard to expand our international footprint

639
00:39:46,465 --> 00:39:48,377
and to put more people there.

640
00:39:48,377 --> 00:39:53,848
In my relations with the Department of State and many of the ambassadors

641
00:39:53,848 --> 00:39:58,945
that I've had an opportunity to work with, every ambassador in a foreign country

642
00:39:58,945 --> 00:40:04,159
that has a member of CBP within that embassy

643
00:40:04,159 --> 00:40:08,877
almost universally tells me how valuable and helpful they are.

644
00:40:08,877 --> 00:40:11,334
They bring a perspective and information to that.

645
00:40:11,334 --> 00:40:18,876
So I am intent on moving forward with expanding our international footprint in CBP.

646
00:40:18,876 --> 00:40:21,956
And right now of course many of you know that we're in negotiation.

647
00:40:21,956 --> 00:40:27,186
We received letters of interest from 25 airports around the world

648
00:40:27,186 --> 00:40:30,755
to expand pre-clearance, the same type of pre-clearance we have

649
00:40:30,755 --> 00:40:34,569
and have had in Canada for a number of years.

650
00:40:34,569 --> 00:40:36,865
So I think that's particularly important.

651
00:40:36,865 --> 00:40:40,490
The other is that; and we haven't done this for a while,

652
00:40:40,490 --> 00:40:44,585
but over the course of the next day and a half or Thursday and Friday

653
00:40:44,585 --> 00:40:49,271
we'll be taking all of the senior leadership within CBP

654
00:40:49,271 --> 00:40:54,078
to our advanced training facility at Harper's Ferry for a day and a half,

655
00:40:54,078 --> 00:40:58,637
perhaps away a little bit from Blackberries and telephones

656
00:40:58,637 --> 00:41:02,500
to spend some time saying how can we better align.

657
00:41:02,500 --> 00:41:03,477
We're all busy.

658
00:41:03,477 --> 00:41:07,148
We all have these silos that we end up operating in.

659
00:41:07,148 --> 00:41:15,882
How can we harmonize within CBP to meet some of the goals that I mentioned here?

660
00:41:15,882 --> 00:41:19,418
Ann Beauchesne: Other questions.

661
00:41:19,418 --> 00:41:20,769
Yes?

662
00:41:20,769 --> 00:41:21,849
Our microphone is coming to you.

663
00:41:21,849 --> 00:41:24,880
Thank you.

664
00:41:24,880 --> 00:41:25,961
Man #2: My name is Clark Dalton.

665
00:41:25,961 --> 00:41:29,152
I'm from a company called [inaudible41:26] provider of biometrics

666
00:41:29,152 --> 00:41:34,399
to your old position actually in Seattle in King County, fingerprint system.

667
00:41:34,399 --> 00:41:37,504
But you alluded in the beginning to the interface

668
00:41:37,504 --> 00:41:41,239
and challenges of balancing commerce and security, of course,

669
00:41:41,239 --> 00:41:45,030
whether it's people or goods moving across the border.

670
00:41:45,030 --> 00:41:51,140
Can you comment briefly on the variable priorities from CBP

671
00:41:51,140 --> 00:41:55,829
on the new entry/exit biometric border control

672
00:41:55,829 --> 00:41:59,755
versus goods and management of goods crossing?

673
00:41:59,755 --> 00:42:03,530
I'm sure everything is a priority.

674
00:42:03,530 --> 00:42:07,113
Gil Kerlikowske: So I think it's particularly critical right now when it comes to

675
00:42:07,113 --> 00:42:11,304
the identification of people and things like fraudulent documents.

676
00:42:11,304 --> 00:42:13,257
There isn't a day that you don't

677
00:42:13,257 --> 00:42:18,095
pick up some news article about Syrian foreign fighters,

678
00:42:18,095 --> 00:42:20,470
whether it's people leaving the United States

679
00:42:20,470 --> 00:42:26,599
and I think the number is certainly less than 200,

680
00:42:26,599 --> 00:42:31,214
but it's people that have either shown an intent or have gone over to Syria,

681
00:42:31,214 --> 00:42:33,470
and then of course because they're U.S. citizens

682
00:42:33,470 --> 00:42:35,708
could return back to the United States.

683
00:42:35,708 --> 00:42:40,259
What danger, what threat do they pose and how are we recognizing that?

684
00:42:40,259 --> 00:42:45,388
It's certainly a much more significant concern in Europe,

685
00:42:45,388 --> 00:42:48,171
the U.K. and other locations.

686
00:42:48,171 --> 00:42:51,761
But the fraudulent document information and stolen passport,

687
00:42:51,761 --> 00:42:57,881
not every country will query passports against Interpol's stolen passport database.

688
00:42:57,881 --> 00:42:58,874
We do.

689
00:42:58,874 --> 00:43:00,088
Others countries do.

690
00:43:00,088 --> 00:43:05,016
But that's important that we show that this is, that this is critical.

691
00:43:05,016 --> 00:43:11,400
When you apply for and ask for the ESTA information to apply to come into

692
00:43:11,400 --> 00:43:15,526
the United States, there are now additional sets of questions.

693
00:43:15,526 --> 00:43:20,293
And some of you have read that we're working with facial recognition systems

694
00:43:20,293 --> 00:43:25,669
in an experiment at Dulles airport, and these are going to continue one.

695
00:43:25,669 --> 00:43:30,715
So the fraudulent document information is gonna be critical.

696
00:43:30,715 --> 00:43:36,946
Biometric exit information and of course as everyone in the room also knows,

697
00:43:36,946 --> 00:43:40,922
our airports really aren't designed for exit,

698
00:43:40,922 --> 00:43:45,051
and they're designed to get people onto the airplanes

699
00:43:45,051 --> 00:43:47,552
but not through certain portals, et cetera.

700
00:43:47,552 --> 00:43:48,632
So we're gonna have to;

701
00:43:48,632 --> 00:43:50,759
we have to think through that pretty clearly.

702
00:43:50,759 --> 00:43:56,208
How can we work with technology given infrastructure constraints

703
00:43:56,208 --> 00:43:58,087
to work in those areas?

704
00:43:58,087 --> 00:44:02,967
So I think that the verification of people is critical.

705
00:44:02,967 --> 00:44:06,030
The agriculture inspections are still gonna be critical

706
00:44:06,030 --> 00:44:12,125
and then the screening and risk-based analysis of cargo.

707
00:44:12,125 --> 00:44:14,692
Ann Beauchesne: Mike Mullen.

708
00:44:14,692 --> 00:44:17,763
Man #3: I'm Mike Mullen from the Express Association of America,

709
00:44:17,763 --> 00:44:19,994
and thank you for those remarks, Commissioner.

710
00:44:19,994 --> 00:44:23,667
I was happy to hear you emphasize the relationship you have

711
00:44:23,667 --> 00:44:27,506
with the other government agencies in the context of the BIC

712
00:44:27,506 --> 00:44:32,769
and the effort to implement the Single ITDS Window.

713
00:44:32,769 --> 00:44:36,337
And I think I can speak for a lot of people in this room

714
00:44:36,337 --> 00:44:43,943
in saying that we feel of all the government agencies CBP has the best grasp,

715
00:44:43,943 --> 00:44:47,806
the sort of deepest understanding of risk management,

716
00:44:47,806 --> 00:44:51,317
and that that's an area where a lot of the other agencies

717
00:44:51,317 --> 00:44:56,773
for a host of cultural and historical reasons have a much different perspective.

718
00:44:56,773 --> 00:45:01,716
So my question is I know this is being discussed in the auspices of the BIC.

719
00:45:01,716 --> 00:45:08,491
How far do you think you can go or how do you see the government

720
00:45:08,491 --> 00:45:12,761
implementing a single approach to risk management that from our point of view

721
00:45:12,761 --> 00:45:18,713
hopefully will look a lot more like CBP's than what some of the other agencies use?

722
00:45:18,713 --> 00:45:22,464
Gil Kerlikowske: I think that the fact that we have such a leadership role

723
00:45:22,464 --> 00:45:27,015
with the Deputy Secretary and the border interagency

724
00:45:27,015 --> 00:45:32,287
and having been the United States Attorney in Los Angeles,

725
00:45:32,287 --> 00:45:36,343
he clearly kind of has that understanding of that balance.

726
00:45:36,343 --> 00:45:42,565
And I think all of us particularly inside the Beltway know that

727
00:45:42,565 --> 00:45:48,300
the usual parochial way is to close our arms, make no comment,

728
00:45:48,300 --> 00:45:51,684
say that we don't make mistakes and things can't happen;

729
00:45:51,684 --> 00:45:56,243
but I kind of go back and take my experience as a police chief for a long time.

730
00:45:56,243 --> 00:45:58,531
No mayor, no city council held me

731
00:45:58,531 --> 00:46:03,312
to a crime-free city of Seattle or a crime-free city of Buffalo.

732
00:46:03,312 --> 00:46:09,488
And yet there are times some elected officials like to hold folks like me

733
00:46:09,488 --> 00:46:11,616
accountable for no one should cross the border.

734
00:46:11,616 --> 00:46:14,360
A secure border is that no one will ever get in.

735
00:46:14,360 --> 00:46:18,239
And if only we'd do more, things will be better.

736
00:46:18,239 --> 00:46:23,134
We need to not do more when it comes to huge expenditures.

737
00:46:23,134 --> 00:46:27,958
We need to do more when it comes to being smart, to being good partners,

738
00:46:27,958 --> 00:46:33,188
to using intelligence, to using technology, when it comes to border security,

739
00:46:33,188 --> 00:46:37,555
trade security or the people coming into the country and doing that.

740
00:46:37,555 --> 00:46:44,107
And I think the more we can talk about that in a very direct way the more cover

741
00:46:44,107 --> 00:46:50,889
or protection it gives to my colleagues and other federal agencies.

742
00:46:50,889 --> 00:46:52,105
Ann Beauchesne: Yes?

743
00:46:52,105 --> 00:46:58,744
Go ahead.

744
00:46:58,744 --> 00:47:02,671
Woman #1: Commissioner, good to see you, Mary Ann Conta with UPS.

745
00:47:02,671 --> 00:47:08,566
Can you give us a few thoughts about your work on Beyond the Border and how you're

746
00:47:08,566 --> 00:47:15,341
going to move forward just working with CBSA on opening the pre-clearance?

747
00:47:15,341 --> 00:47:18,557
Gil Kerlikowske: So CBSA will still require

748
00:47:18,557 --> 00:47:22,972
through the government of Canada legislation to allow that.

749
00:47:22,972 --> 00:47:28,235
I think we'll be able to move a little bit more quickly when it comes to that.

750
00:47:28,235 --> 00:47:31,052
I think given the strong working relationship

751
00:47:31,052 --> 00:47:36,754
that the two agencies have that hosting and sharing with CBSA

752
00:47:36,754 --> 00:47:42,169
their ability to do some of the work after legislation here in the United States,

753
00:47:42,169 --> 00:47:48,679
where they can be to work within the United States is absolutely fine.

754
00:47:48,679 --> 00:47:52,624
There are so many now;

755
00:47:52,624 --> 00:47:56,973
there are so many systems now that are available to verify the work

756
00:47:56,973 --> 00:48:02,917
that's being done whether it's video systems, tracking systems, et cetera,

757
00:48:02,917 --> 00:48:07,564
that an overarching concern that, well, someone,

758
00:48:07,564 --> 00:48:10,036
a representative from Canada is doing this,

759
00:48:10,036 --> 00:48:12,627
or it's a representative from the United States.

760
00:48:12,627 --> 00:48:15,043
We should be able to trust each other.

761
00:48:15,043 --> 00:48:18,034
And of course we also have those systems in place.

762
00:48:18,034 --> 00:48:25,002
I think that that agreement that has received so much support

763
00:48:25,002 --> 00:48:28,058
will continue to receive support from industries

764
00:48:28,058 --> 00:48:33,856
on both sides of the border as they work with both our United States Congress

765
00:48:33,856 --> 00:48:38,974
and Canada's legislature and government to move forward.

766
00:48:38,974 --> 00:48:42,350
Ann Beauchesne: Over here?

767
00:48:42,350 --> 00:48:43,710
Woman #2: Good morning, Commissioner.

768
00:48:43,710 --> 00:48:46,294
Thank you so much for taking the time to meet with us.

769
00:48:46,294 --> 00:48:49,165
I apologize if I bring up a subject that you already discussed,

770
00:48:49,165 --> 00:48:51,166
but I was a little late.

771
00:48:51,166 --> 00:48:56,268
The question has to do with port departure filing,

772
00:48:56,268 --> 00:49:01,132
and I should mention that many in industry are very concerned who now

773
00:49:01,132 --> 00:49:05,441
enjoy the benefits of port departure filing may lose that benefit

774
00:49:05,441 --> 00:49:10,155
because [inaudible 49:06] has asked us to eliminate it.

775
00:49:10,155 --> 00:49:13,489
I was just wondering if you see any way possible that a solution

776
00:49:13,489 --> 00:49:17,448
could be reached that would satisfy international security concerns

777
00:49:17,448 --> 00:49:19,321
and at the same time preserve this great benefit

778
00:49:19,321 --> 00:49:23,184
for some of the companies that need it and deserve it.

779
00:49:23,184 --> 00:49:23,888
Gil Kerlikowske: Thanks.

780
00:49:23,888 --> 00:49:27,750
I mean, you really hit me with a question that I couldn't even begin to answer.

781
00:49:27,750 --> 00:49:29,095
So just so you know.

782
00:49:29,095 --> 00:49:32,318
Woman #2: May I say that I was worried that it might not have gotten to your level,

783
00:49:32,318 --> 00:49:34,061
but I decided to ask it anyway.

784
00:49:34,061 --> 00:49:38,940
Gil Kerlikowske: Somehow I think it will now.

785
00:49:38,940 --> 00:49:39,549
Woman #2: I'm sorry.

786
00:49:39,549 --> 00:49:40,965
What did you say?

787
00:49:40,965 --> 00:49:46,556
Gil Kerlikowske: I think, I think it'll get to my level now.

788
00:49:46,556 --> 00:49:50,602
Man #4: Commissioner, Bill Oriel from National Association of Beverage Importers.

789
00:49:50,602 --> 00:49:59,177
The trade and labor went through just a horrible port slowdown on the West Coast

790
00:49:59,177 --> 00:50:02,921
that's just being alleviated right now.

791
00:50:02,921 --> 00:50:07,232
Customs was somewhat of a bystander on that, but I'm asking.

792
00:50:07,232 --> 00:50:09,952
You must've gone through that too, getting briefings all the time.

793
00:50:09,952 --> 00:50:13,527
Are there any lessons learned for Customs having gone through

794
00:50:13,527 --> 00:50:18,150
that kind of experience on the West Coast and the huge impacts it had on trade?

795
00:50:18,150 --> 00:50:19,606
Gil Kerlikowske: Yeah, I think there are, Bill.

796
00:50:19,606 --> 00:50:22,613
And listen, I know you just stepped off COAC

797
00:50:22,613 --> 00:50:26,558
and we thank you very much for your service on that.

798
00:50:26,558 --> 00:50:28,476
That was tremendously helpful.

799
00:50:28,476 --> 00:50:32,147
But we watched that very carefully, and you know, it kind of hit home

800
00:50:32,147 --> 00:50:36,340
because I'd hear from people in Washington State about the apple crop

801
00:50:36,340 --> 00:50:42,354
that actually was not able to reach an export market so the costs were tremendous.

802
00:50:42,354 --> 00:50:47,217
And you'd like to see some type of labor peace

803
00:50:47,217 --> 00:50:50,600
because when I was the police chief in Seattle we had six years;

804
00:50:50,600 --> 00:50:53,873
we had the slowdown also.

805
00:50:53,873 --> 00:50:56,143
So it creates some difficulties.

806
00:50:56,143 --> 00:51:03,334
Todd Owen, both in his position now but also in his position at Long Beach in LAX,

807
00:51:03,334 --> 00:51:06,653
Todd worked very hard to have in place

808
00:51:06,653 --> 00:51:10,878
a whole series of additional support mechanisms,

809
00:51:10,878 --> 00:51:13,749
whether when it was actually going to be settled

810
00:51:13,749 --> 00:51:16,677
and now things were going to be moving more quickly.

811
00:51:16,677 --> 00:51:19,355
Would we be bringing in people TDY?

812
00:51:19,355 --> 00:51:21,690
Would we be bringing people in on overtime?

813
00:51:21,690 --> 00:51:23,482
Would we have extra shifts?

814
00:51:23,482 --> 00:51:26,620
What are the different things that we could do?

815
00:51:26,620 --> 00:51:28,971
Those port directors have been pretty amazing,

816
00:51:28,971 --> 00:51:31,082
whether it's Oakland, Seattle, et cetera,

817
00:51:31,082 --> 00:51:36,328
of being able to shift some of their resources away from other locations

818
00:51:36,328 --> 00:51:40,633
when it came time that the cranes were operating fully

819
00:51:40,633 --> 00:51:42,224
and the cargo was coming off

820
00:51:42,224 --> 00:51:45,920
to make sure that now there wasn't a new holdup, and it would've been us.

821
00:51:45,920 --> 00:51:49,472
So we learned the lessons from six years ago,

822
00:51:49,472 --> 00:51:53,046
and we had them, and we learned a few more lessons this time.

823
00:51:53,046 --> 00:51:54,749
Thanks, Bill.

824
00:51:54,749 --> 00:51:57,686
Ann Beauchesne: We have time for one more question back here.

825
00:51:57,686 --> 00:52:00,621
Man #5: Hi, Commissioner, David Richardson with Southwest Airlines.

826
00:52:00,621 --> 00:52:02,036
Thanks for coming out today.

827
00:52:02,036 --> 00:52:06,044
Just congratulations on the pre-clearance agreement with Canada.

828
00:52:06,044 --> 00:52:10,452
Could you please address the possibility of possibly some sort of

829
00:52:10,452 --> 00:52:13,348
pre-clearance agreement with Mexico in the future?

830
00:52:13,348 --> 00:52:15,531
Gil Kerlikowske: I think Mexico is a little further off

831
00:52:15,531 --> 00:52:18,138
when it comes onto the pre-clearance.

832
00:52:18,138 --> 00:52:21,697
By the way, the government of Mexico and several of the airports,

833
00:52:21,697 --> 00:52:28,968
mostly in the high tourist destinations, have shown an interest in doing that.

834
00:52:28,968 --> 00:52:33,023
I think we've made a good first step with a mutual recognition arrangement

835
00:52:33,023 --> 00:52:40,038
on trade and cargo security where we're both recognizing our mutual programs

836
00:52:40,038 --> 00:52:44,037
for vetting traders, Trusted Trader programs.

837
00:52:44,037 --> 00:52:48,518
And I think that we can expand upon that when it comes to passengers also.

838
00:52:48,518 --> 00:52:50,869
I think it's a little further.

839
00:52:50,869 --> 00:52:55,812
I think it's a little further down the road for the pre-clearance in Mexico.

840
00:52:55,812 --> 00:52:58,203
But it was heartening to see;

841
00:52:58,203 --> 00:53:04,273
it was heartening to see a couple letters from others, so good, thanks.

842
00:53:04,273 --> 00:53:06,153
Ann Beauchesne: Commissioner, clearly a lot of progress

843
00:53:06,153 --> 00:53:08,816
has been made under your leadership, terrific job.

844
00:53:08,816 --> 00:53:09,793
Thank you.

845
00:53:09,793 --> 00:53:11,800
I guess I just want to give you the opportunity,

846
00:53:11,800 --> 00:53:14,065
anything that you haven't been asked this morning

847
00:53:14,065 --> 00:53:18,040
that you'd like to hit on or anything that the Chamber and our members

848
00:53:18,040 --> 00:53:21,487
and the private sector can be doing more of in the next couple of years

849
00:53:21,487 --> 00:53:23,128
with you and your team.

850
00:53:23,128 --> 00:53:28,526
Gil Kerlikowske: Yeah, I think that the burden falls on us quite a bit.

851
00:53:28,526 --> 00:53:32,494
People like Todd and Brenda and Marie Eloisa are very busy,

852
00:53:32,494 --> 00:53:38,397
but I have never seen them not take the opportunity to attend one of your meetings,

853
00:53:38,397 --> 00:53:42,236
one of your conferences, to have some of the very smart people

854
00:53:42,236 --> 00:53:47,483
like Steve and others to be able to brief, and we do that a lot.

855
00:53:47,483 --> 00:53:50,187
We spend a lot of time and effort in that.

856
00:53:50,187 --> 00:53:54,369
And I think it's time and effort that is well spent.

857
00:53:54,369 --> 00:53:57,480
So you should not be, and I don't think you have been.

858
00:53:57,480 --> 00:54:00,072
You should not be the least bit hesitant

859
00:54:00,072 --> 00:54:05,671
in asking and demanding of us that we continue and do more.

860
00:54:05,671 --> 00:54:06,351
Thank you.

861
00:54:06,351 --> 00:54:07,064
Ann Beauchesne: Thank you.

862
00:54:07,064 --> 00:54:07,871
Thank you, Commissioner.

863
00:54:07,871 --> 00:54:09,911
I appreciate it.

864
00:54:09,911 --> 00:54:10,319

865
00:54:10,319 --> 00:54:10,638