The Business Alliance for Secure Commerce (BASC), Peru Chapter, talked with CT Strategies’ Partner and former U.S. Customs and Border Protection, Assistant Commissioner for the Office of International Trade, Allen Gina, about various supply chain security dynamics and areas of risk between the U.S. and Latin America. One topic was the proliferation and virtues of Authorized Economic Operator (AEO) programs in Latin America and how they are a relatively low cost way to promote supply chain security compared to technology and infrastructure investments.
He also discussed potential impacts of the Trump Administration’s position on trade; warning that, while strategic enforcement against intellectual property rights violations or unfairly dumped goods is a positive step, if a protectionist trade agenda is pursued, it may result in a backlash against the U.S. by its trading partners, where U.S. exports face greater tariffs abroad, ultimately harming the U.S. economy. Concerning NAFTA, it is important to consider that in today’s modern global value chains, goods cross the U.S. land borders multiple times before they are finished products. Identifying “Made in America” products is often not a black and white issue.
As broad advice to the World Customs Organization (WCO) and its members, Mr. Gina encouraged the adoption of a common unique identifying number, such as a DUNS number, that can be used by any company in the world for AEO compliance or other verification purposes by Customs. He also suggested that AEO programs around the world regularly update their security and compliance criteria. And while narcotics remain the top Latin America-U.S. supply chain security threat, its becoming increasingly necessary to consider cybersecurity and insider threats to companies in the global supply chain.
Read the Full Interview from the BASC Peru Cargo Security Publication. Read the Full BASC Peru Cargo Security Publication.
For global logistics and trade compliance professionals, 2022 has been the year of significant changes, and CBP is keeping us on our toes as secure trade becomes an even greater focus across companies and customs organizations worldwide. As a business, your goal is to keep goods moving seamlessly, which is why it’s more important now than ever to understand how changes to the program will affect operations across your enterprise.