U.S. Customs and Border Protection (CBP) recently published the long awaited Federal Register Notice, dated June 16, 2014, discussing the “Announcement of Trusted Trader Program Test.” This new “Trusted Trader” program is big news for U.S. and non-resident Canadian importers, and if implemented will combine the Customs-Trade Partnership Against Terrorism (CTPAT) and Importer Self Assessment (ISA) programs, making ISA extinct. CBP is currently recruiting test companies that have to be willing to go through an 18 month program test.
What is the Trusted Trader Program?
- CBP will unify CTPAT and ISA programs into a new “Trusted Trader” program. Companies will still have the option to apply for CTPAT and opt out of the Trusted Trader Program, but, the ISA program will be replaced by the Trusted Trader program. CBP aims to align the Trusted Trade program with Authorized Economic Operator (AEO) programs, which focus on a combined trade and security compliance model.
- CBP is collaborating with the U.S. Consumer Product Safety Commission (CPSC) and the U.S. Food and Drug Administration (FDA), to develop the new “Trusted Trader” program aims to “streamline the process through which importers can establish to CBP that they strive to secure their supply chains and strengthen their internal controls for compliance with the existing laws and regulations administered or enforced by CBP.” The 3 government agencies will collaborate, share information, streamline the application and validation process; and increase the efficiencies in the existing trade programs.
- CBP plans to utilize the Centers of Excellence and Expertise […]