The concept of Management by Account (MBA) is not new. Sometimes referred to as Account Based Processing or Account Management, the concept of viewing an importer's business from a more holistic approach has been under discussion between the trade and U.S. Customs and Border Protection (CBP) for years. For numerous reasons, however, the idea has languished and never truly moved forward. Now, with efforts by the Commercial Operations Advisory Committee (COAC) and support from CBP Commissioner Bersin, the initiative appears to be taking off.

Background

The concept of Account Management (AM) was developed by CBP in 1994 as a key driver to achieve commercial compliance with large importers representing roughly 70 percent of commercial imports into the United States. The idea was that by CBP focusing on the internal compliance controls of these large importers, the importers would achieve a higher degree of trade compliance, leveraging an enterprise account model rather than a "transactional approach," which means assessing or inspecting each shipment or reviewing each entry declaration by these companies.

The stated purpose of AM was to establish "government-business relationships that are critical in building a solid foundation of open communication and trade facilitation" and to become "a cornerstone of the U.S. Customs Service risk management approach".

In 1997, CBP created the position of the National Account Manager (NAM) for a number of large importers. The stated benefits provided to importers assigned a NAM "include but are not limited to: access to company data relative to CBP examinations, advance notice on CBP program and policy changes, facilitation with discerning importers (or broker's) problems and trends, assistance with determining bond sufficiency, among others. Account Managers focus on improving a company's compliance and internal controls in order to help reduce CBP examinations. The Account Manager acts as the primary point of contact for all CBP issues and provides the best customer service possible." In addition to certain large importers, those importers participating in the Importer Self Assessment (ISA) program were also provided a NAM as a benefit of participation.

Despite the efforts made, the concept of AM has yet to achieve its goals. Currently CBP has 33 full- time NAMs in 19 locations. Additionally, there are a few hundred Port Account Managers (PAM) who are only nominally engaged in the program. With the top 3000 importers accounting for 75 percent of all imports by value, the small number of NAMs is insufficient to cover the needs these importers, as well as any potential expansion.

COAC Recommendations

In May, 2009, the COAC presented a white paper to CBP that identified AM as a key trade area with untapped potential (http://tinyurl.com/34fbrnj). The white paper stated that CBP should consider creation of an Integrated Account Based Processing concept that encompasses trade compliance, informed compliance, security, intellectual property rights, import product safety and information technology.

Although the white paper reinforced the use of NAMs for the top 3000 importers and top 100 brokers, it also included recommendations on expanding the concept to small and mid-size enterprises (SME). Overall, the theory focused on reinforcing a "risk-based approach" that looked beyond just trade compliance and encouraged better integration of the Automated Commercial Environment (ACE) to account for limited CBP resources.

Additionally, the COAC envisioned the development of Centers of Expertise (CoE) for specific industry sectors and trade associations in concert with the NAM program. The goal would be to achieve more industry commodity expertise and greater uniformity of treatment for specific product categories and to promote informed compliance.

Despite the solid recommendations, efforts to move forward on the concept languished for the remainder of 2009, perhaps due to the absence of a CBP Commissioner to support the efforts and drive the initiative forward. In the meantime, CBP did continue to consult with COAC and its Trade Facilitation subcommittee to assess the impact of various account management projects on CBP's efforts to achieve the goals of the CBP Trade Strategy.

The Initiative Takes Off

In March 2010, Alan Bersin was appointed CBP Commissioner and the discussions on AM (now termed Management by Account, or MBA) began to take off.

Recently, Commissioner Bersin and Deputy Commissioner Aguilar approved the formation of an internal CBP task force of approximately two dozen CBP officials from around the country who have temporarily relocated to Washington, D.C., to be dedicated full time to this effort. They are charged with producing quick action and recommendations on a select set of previously identified project ideas within 90 days. This task force began its work on June 29, 2010.

The task force has been working directly with the COAC Trade Facilitation subcommittee on a number of specific projects with respect to the MBA concept, including:

  • Risk-Based Account Management
    • Viewed as a new vision of aggregate risk management of trade entities. The goal is to raise compliance by focusing on areas of risk (versus volume), while facilitating trade for trusted partners. A potential option would include NAMs being assigned to an account for a finite period of time to raise compliance, including assignment to SME accounts. Emphasis would be on Priority Trade Issues (PTI) and greatest areas of risk. Virtual industry teams could be created.
  • Single Partnership Program
    • This concept explores the potential for a single partnership program that would bridge security, safety and compliance partnership programs (e.g., C-TPAT, ISA, ISA-Product Safety, etc.), including efforts with other government agencies. Additionally, there would be consideration of a simplified process through one streamlined application for multiple partnership programs.
  • Simplified Entry Process
    • Potential consideration of filing entry summaries on a periodic basis (e.g., monthly) for trusted traders, as well as looking at potential ways to encourage importers to utilize the Unified Entry Filing option for entries and Importer Security Filings (ISF).
  • Simplified Financial Processing
    • Review of new potential practices to allow the trade to satisfy financial obligations. Discussions include a new bill form (revised CBP Form 6084), eBilling and alternative payment options.
  • Centers of Expertise (CoE)
    • Currently CBP is considering two potential models for the concept of a CoE. The CoEs would be industry specific (e.g., Petroleum, Automotive, Agriculture, etc.) and an importer would fall within the scope of a CoE by the nature of the industry they are in. Potentially a CoE would include CBP personnel that cover functional areas including risk management, enforcement, customer service, uniformity/policy, account validation (e.g., ISA, C-TPAT) and so forth.

During the week of August 9, 2010, members of the CBP task force met with members of the COAC Trade Facilitation subcommittee to further discuss particular projects (Strawmen) and gain further input. These meetings were robust and will be followed by subsequent meetings to be held in mid-September to discuss more final project ideas (Tinmen).

In the interim, CBP plans to reach out to other select members of the trade (e.g., trade associations) to explain the project ideas and obtain further comments.

Although the concepts are still in the early stages and much discussion still needs to take place, the notion of MBA clearly has caught the attention of Commissioner Bersin and CBP is currently committing the resources to evaluate what is needed to make MBA a reality.

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