Security of International Mail

World Mail and Express Americas Mexico City February 2011

U.S. Department of Homeland Security Efforts to Secure International Mail

Security of Airmail Transport

Responsibility of the US Transportation Security Agency

Different Requirements for cargo and passenger aircraft

Advanced Electronic Information on Mail Packages

Data to be used for processing by US Customs and Border Protection

2

Securing the Flow of Commerce through the Global Supply Chain

SAFE Port Act of 2006 emphasized the need for DHS to consider proposed or established standards and practices of foreign governments and international organizations, including the World Customs Organization (WCO), to establish standards and best practices for the security of the supply chain

DHS/CBP is working in conjunction with postal operators, other customs authorities, the WCO, and the Universal Postal Union (UPU) towards securing the international mail supply chain

3

4

Why Mail differs from Other Cargo

International mail governed by UPU treaty and World Customs Organization (WCO) Convention, which specify unique documentation and procedures

No end to end control on mail shipments, i.e. there are many stakeholders in the process, including postal operators and airlines

Postal administrations are not bonded but mail moves on bonded carriers

CBP makes entry on informal mail entries; no broker is used to conduct customs business

CBP assesses duty and taxes on informal mail shipments

5

Mail versus Other Cargo

Mail uses hard copy declarations, and posts assume no liability for incorrect, incomplete or missing documentation

Mail clearance is a manual process based on a hard-copy form – there is no advance information on individual shipments to facilitate targeting and risk analysis by CBP

Mail clearance much simpler and less accountable than express or cargo

UPU taking steps to set security standards for postal operators and facilities

San Francisco, CA New York, NY

Miami, FL

Los Angeles, CA

Chicago, IL

Newark, NJ

Honolulu, HI

Charlotte Amalie, VI

CBP International Mail Facilities

San Juan, PR

7

Postal Accountability and Enhancement Act (PAEA):

Signed by the President of the United States on December 20, 2006

Identifies postal products as competitive or market dominant

Requires that CBP apply U.S. laws pertaining to the import and export of mail to competitive products in the same manner as similar shipments by private companies

8

PAEA and the Trade Act Trade Act of 2002 required advance manifesting of postal

shipments – implementation was deferred; SAFE Port Act calls for enhancing the global supply chain

The PAEA underscores the original requirement of the Trade Act

CBP recognizes that true UPU mail is unique – it is subject to all U.S. import and export laws but the international postal supply chain and enforcement process for mail items needs to be enhanced by receiving electronic data in advance on individual items, beginning with “competitive” products

9

UPU Congress Resolution 56: Expanded use of Electronic Data Interchange (EDI), Instructs the Postal Operations Council to:

Further develop and maintain EDI standards in cooperation with the WCO (supports the WCO Framework of Standards to Secure and Facilitate Global Trade, while improving postal security and operations)

Promote use of EDI for clearance of postal items in cooperation with the WCO

Develop a plan for implementation of customs EDI after appropriate study, taking into account varying technological capabilities of UPU members and the nature of different postal products and services

10

Status of UPU and other efforts Customs Group addresses all customs –related issues,

including EDI; helps EDI efforts of the Postal Security Action Group, EMS Cooperative, and Parcels Group

Customs Data Interchange Group (CDIG), which reports to the Standards Board, has developed EDI message (CUSITM and CUSRES) standards that will now be tested and evaluated

Postal Technology Center will update the International Postal System (IPS), to allow for generation of customs messages

MEDICI group formed by several posts to exchange customs data, which is key to international implementation

WCO-UPU Contact Committee is monitoring these efforts closely and the WCO supports in principle the UPU standard messages

11

Current US efforts: Export

The USPS forwards electronic customs declarations information to CBP in advance of item dispatch

Advance electronic data entered through optional online channels including “Click ‘N’ Ship” and Web Tools, entered at point of sale, and from customer systems

Outbound Global Express Mail and Air Parcels greater than 16 oz. are included in the data transmitted to CBP

Information is formatted into an EDIFACT message (the UPU-approved ITMATT, or item attribute message, of which CUSITM is a subset of data for customs purposes)

12

Current US efforts: Export (continued)

Each item has a unique identifier which is scanned by the USPS upon acceptance

This triggers the ITMATT message, which is sent to CBP for processing and review at the dispatching exchange office

CBP selects items for further physical inspection by placing a hold message (CUSRES), which is sent to the USPS

All items scanned by USPS prior to dispatch and those with a hold are scanned into CBP custody then retained or released

USPS also sends the customs data to Canada, Great Britain, Germany, and France

13

Export declarations benefit the USPS and CBP

Required Information (Declaration):

Complete name/address of sender and addressee

Description of contents

Intended use (commercial samples, documents, or gifts)

Quantity, Value, Tariff Number (if known), Weight

Benefits:

Advance Screening

Risk Management (Enforcement)

Facilitate Release

14

Inbound Customs EDI Efforts Foreign post will transmit ITMATT to the USPS with the UPU

PREDES message that contains the receptacle and arrival information; the CUSITM data will then be transmitted to CBP

USPS will identify the receptacle as containing pre-advised items

The initial test with Great Britain, following successful data tests, will use a segregated receptacle with items that are pre-advised - all items are scanned by the USPS upon arrival and only those with a CBP hold will be physically turned over to CBP for inspection

Pilot operation is presently underway at the JFK Airport IMF in New York, USA - Pilot participants include CBP/JFK, USPS and Royal Mail (UK)

Phase I of the pilot, which consisted of data transmission (sending and receipt of messages from USPS) was completed in September 2010

15

Inbound EDI Efforts Continued

Based on the results of Phase I and current operational readiness, Phase II is scheduled is beginning in February 2011 and will test the systemic and operational processes to target and hold inbound mail parcels

Upon successful operational testing, plans are to expand the pilot and develop requirements for all inbound packages (similar data elements as export, but with shipper and consignee phone number and a 6-digit HTS, if known)

Plan is to develop a cooperative, phased approach by product and by country, starting with EMS and parcels since they are competitive products and have unique identifiers

Establish a level playing field between mail and other modes (e.g. Express) for required electronic reporting of data in advance